U-5 Form correct answers Under FINRA rules, if a new employer requests a copy of Form U-5 from a new employee, he must provide it within 2 business days
When a registered principal terminates his employment at a FINRA member firm.... correct answers The terminating firm must notify FINRA within ...
Series 26 || All Correct.
U-5 Form correct answers Under FINRA rules, if a new employer requests a copy of Form U-5
from a new employee, he must provide it within 2 business days
When a registered principal terminates his employment at a FINRA member firm.... correct
answers The terminating firm must notify FINRA within 30 days
And
the terminating firm must provide a Form U-5 to FINRA
What is NOT considered a security? correct answers Index Annuities
U-4 changes correct answers Must be amended for changes to name, address, aliases used, and
information relating to arrests or convictions
If a member firm is notified by FINRA that it must begin tape-recording the phone calls of its
representatives to existing and potential customers, it must do so within how many days of
notification correct answers A firm has 60 days to secure the equipment and begin recording
If you fail a securities exam how long do you have to wait to retake it? correct answers After the
first or second failure of a securities qualifying examination, a candidate must wait 30 days
before his next attempt. After a third failure, you must wait 180 days to take the exam again.
Before signing Form U-4, a principal must verify the applicant's employment history for the last
correct answers 3 years, in writing or over the phone
Statutory disqualification correct answers Will result from the conviction of any felony or
securities related misdemeanor and lasts for 10 YEARS from the time of the conviction
Form MC-400 correct answers a filing fee of $1,500 is required,
and then the Department of Member Regulation,
with approval of the NAC, will decide if you may continue to be employed and in what capacity
Finra membership fees are based on correct answers The number of branch offices registered
with FINRA as well as the number of registered representatives and principals registered with
the association
An assisitant who accepts (equity) orders correct answers Must have a minimum of a series 11
Mutual fund shares may be used as collateral for a loan correct answers Yes. After being held for
30 days.
Which of the following mutual fund share classes has no back-end load, low management fees,
and low or no 12b-1 fees correct answers Class A
, The cash value of a life insurance contract funded by a separate account is calculated correct
answers Although the value of an accumulation unit is calculated daily, the policyholder's cash
value in a variable life contract is determined monthly
A fund must inform its shareholders of their right to reinvest dividends at NAV correct answers
At least annually (usually communicated through the annual report)
The maximum length of the initial contract that an investment company may enter into with its
investment adviser is how many year correct answers 2 years
In which of the following situations must a broker-dealer registered with the SEC under the Act
of 1934 also be registered as an investment adviser under the Investment Advisers Act of 1940
correct answers A broker-dealer that receives special compensation for providing investment
advice (separate from any commissions, markups, or markdowns), such as in wrap accounts,
must register as an investment adviser.
Which type of historical information is required on Form U-4? correct answers 5-year residency
history and a 10-year employment history.
An investor who owns shares of a mutual fund owns: correct answers An undivided interest in
the fund's portfolio.
If your firm hires a salesperson who is currently under a statutory disqualification but who has
qualified for continued employment as a Tier II person, the firm must: correct answers Paying an
annual fee to FINRA is required to offset its cost of greater supervision if a firm hires a
salesperson who has been statutorily disqualified under Tier I or Tier II.
All of the following statements concerning the capitalization of a management company are true
correct answers Closed-end companies may not have more than $1 of debt for every $3 of assets.
Open-end companies may borrow from banks, but may not issue preferred stock or bonds.
Closed-end companies may issue bonds and preferred stock.
If a customer is interested in checking on the disciplinary history of a registered representative,
you should tell her correct answers FINRA's Web CRD is available for customers who wish to
inquire about disciplinary information.
Asset-based distribution fees, also known as 12b-1 fees: correct answers 12b-1 fees are assessed
against the fund's annual average daily net assets.
Reviewed at least quarterly and renewed annually by the investment company's board of
directors.
The maximum length of term for which a member of a mutual fund's board of directors can be
elected is how many years? correct answers Members of the board of directors may be appointed
for a minimum of one year and a maximum of five years.
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