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SIE Series 24 Exam 186 Questions with Verified Answers,100% CORRECT
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SIE Series 24 Exam 186 Questions with Verified Answers
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SIE Series 24 Exam 186 Questions with Verified AnswersForm NMA - CORRECT ANSWER Opens 180 day window for new application for
b/d registration
Finra responsibilities - CORRECT ANSWER Obl/authority interpret rules, fees,
compliance issues, disputes, CRD, education
Form BD - CORRECT ANSWER form used by B/D to register with SEC, SRO's. Must
be updated within 30 days when out of date.
Form CMA - CORRECT ANSWER must be filed electronically when there is a
change in ownership or control.
Finra regulates which securities? - CORRECT ANSWER OTC nonexempt securities
Nasdaq rule 1014 - CORRECT ANSWER org chart, business plan, supervisory
systems, financial projections, record keeping
When are DBA's acceptable? - CORRECT ANSWER acceptable if filed with finra and
commission
Each B/D must have a min of how many principals register (except for Sole
proprietors)? - CORRECT ANSWER 2 principals (min)
DMR ( Dept of Member Registration) process/responsibilities? - CORRECT
ANSWER review applicants capital, scope of business harmony with public
interest and protection of investors.
DMR issues a written decision within how many days of the pre-membership
interview? - CORRECT ANSWER 30 days (grant the application, deny it, grant with
restrictions)
,Finra requires how many resident principals for Office of Supervisory Jurisdiction?
- CORRECT ANSWER 1 resident principal
What is statutory disqualification? - CORRECT ANSWER disciplinary actions in the
last 10 years by SEC.
What is form MC400? - CORRECT ANSWER Form that needs to be completed if a
firm wants to sponsor a person who was disqualified. Disqualifications also
include DUI and assault, however, they do not pose a risk to investors and may be
approved.
What is the fee paid by firms to employee statutory disqualified employees (if
approved by finra)? - CORRECT ANSWER $1500 annually Tier 1
$1000 annually Tier 2
If Finra bars or suspends a Associated Person, member firms cannot - CORRECT
ANSWER employee these people in any capacity
What is rule 9522? - CORRECT ANSWER Dept of Member Regulation (DMR) has
right to approve statutory disqualified persons to become an associate of a
member firm.
What is rule Rule 4530 - CORRECT ANSWER must report within 30 calendar days.
What is Form BDW used for ? - CORRECT ANSWER used to withdraw registration
as a B/D
Member firms membership can be suspended/revoked if feed are not paid with in
how many days? - CORRECT ANSWER 15 days
When is a principal required? - CORRECT ANSWER 1)actively engaged in mngt of
investment banking/securities business
2) When supervising associated persons
How many days does a b/d have to respond to a potential employer regarding an
associated person? - CORRECT ANSWER 10 business days
, How many years of employment do principals need check before signing U-4? -
CORRECT ANSWER 3 years
Finger printing - CORRECT ANSWER 3 attempts
summer interns do not need finger printing
non- registered persons - outside bookkeeping vendors
U-5 - CORRECT ANSWER 1) must be completed in 30 days of termination.
2) new employer gets U-5 from Finra (not former employer)
3) if requested, new employee has 2 business days to forward u-5 to employer
Regulatory element requirements - CORRECT ANSWER 120 days after 2nd
registration anniversary and every 3 years there after. If person fails to meet
requirement, license will be "inactive'. Cannot perform any job duties. In-Firm
exemptions may apply if approved by Finra.
Firm element - CORRECT ANSWER annual training by firm to review regulatory
developments, sup needs, scope of member business activities.
Brokerage supervision (principals) responsibilities - CORRECT ANSWER 1) ensure
RR have good working knowledge of WSP's.
2) SEC Act 1934
3) review accts/activity/transactions
4) accepts new customer accounts
make sure RR is properly qualified
5) Suitability
What should a member firm do if customer refuses to provide information for
new acct? - CORRECT ANSWER 1) Member firm may use whatever info available
to decide whether to open account or not.
2) If no info provided, no recommendations can be made.
What is an OSJ? - CORRECT ANSWER order execution, market making, formation
of offerings, custody of accts, supervision of activities by RR.
Must be managed by one resident principal - review accts, WSP, inspection,
maintain records.
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