10 correct answers How many days must a B/D send a pre-dispute form?
Could Get:
- Suspended for 1 year
- Expelled for up to 10 years
- Bar them for life
- Fine any unlimited amount correct answers If minor rule violation is rejected by rep, what can happen?
- You did something bad, but no...
Series 26 || Questions and 100% Accurate Answers.
10 correct answers How many days must a B/D send a pre-dispute form?
Could Get:
- Suspended for 1 year
- Expelled for up to 10 years
- Bar them for life
- Fine any unlimited amount correct answers If minor rule violation is rejected by rep, what can
happen?
- You did something bad, but not a big deal
- Worst case is $2,500 & letter or slap on the wrist correct answers Minor Rule Violation
- 25 on initial request
- Second note, they have 14 days
- If that fails to get B/d response, FINRA assumes admission of guilt, and B/D gets a failure to
respond violation on top of original violation correct answers How many days a B/D has to
respond to FINRA violation explanation
Dividend Income + Interest Income - Expenses correct answers Net investment MUFU income
calculation
(POP - NAV) / POP correct answers Calculation for sales charge percentage
Introducing a portion of it's business to a clearing member on a fully disclosed basis correct
answers How can a member firm in financial trouble reduce the amount of net capital required
by doing...
Suitability Information correct answers If customer fails to provide suitability info, the account
may still be opened, however no recommendations may be made, only UNsolicited orders may
be taken
Person who votes & acts for the member on FINRA matters
- must be senior management
- must be registered as a principal correct answers Executive Representative
Prohibited practice of a fund sponsor "directing" it's portfolio trades to a broker in the fund
selling group, based on how much of the fund it sells correct answers What is "directed
brokerage"?
Referrals from bank employees correct answers - Can receive incentive compensation
- Not contingent on sale
1. Flat $25 adjusted for inflation, or
2. Based on annual compensation of individual
or position
,T + 3 correct answers Corporate and Muni trading date
- B/D's required
- Must be filed in 20 days of quarter
- ONLY if FINRA requests it correct answers Statement of Supplemental Income
FCC's telephone consumer protection act of 1991 correct answers - Training Requirement
- Time of Day restrictions
- Do Not Call List
Semi-Annually correct answers How Often an investment company must report to shareholders
24 Months correct answers Variable policy can be converted to whole life contract for how long?
Not tax deductible & distributions are tax free correct answers Coverdell Contributions
180 correct answers How many days after firing disciplined people do you have to wait to
rehire?
One that has been expelled from membership in an SRO correct answers Disciplined Firm
Small Firm - 5-10 reps = 40%
Medium firm - 10-20 = 4 reps
Large Firm - 20+ = 20% correct answers Tape recording levels
- Advisers in only 1 state and all clients are in that state
- Advisers who's clients are only insurance companies
- Private fund advisers
- Foreign advisers with no place of biz in the USA
- Advisers to venture capital funds correct answers Exemptions to investment advisers act of
1940
The membership & new services correct answers If FINRA suspends or expels a member, it will
notify the....
2 public, 1 non-public correct answers For disputes over $100,000 how many arbitrators are
required?
Promptly = 30 days correct answers How many days to file reportable event report with FINRA
- $11,000 under 50
- $13,000 over 50 correct answers Maximum spousal IRA contribution limits
2 public & 1 non-public Arbitrator correct answers Arbitration panel for amount over $100,000
consists of how many & which type of people?
, 30 days - not business days correct answers Mutual Fund shares and UIT's may be used at
collateral in a margin account after how many days
3 years, w/ prior 2 years being readily accessible correct answers How long do tape recorded
phone convos need to be retained for?
Customers & Consumers given privacy notice upon account opening, customers annually
thereafter correct answers Regulation SP require privacy notices to be given how often & to
whom?
25 days correct answers - After receiving a complaint from the department of enforcement, a
respondent has _______ days to file a resonse?
Monthly & Quarterly correct answers Focus II filing frequency
T + 1 correct answers Gov't securities, bonds, munis & options confirmation time line
Insider trading bounty correct answers Can be made to informants by the SEC for up to 30% of
any civil penalties collected
True correct answers "T/F" - FINRA must be notified w/in 30 days if any commodities or
insurance regulator has commenced action against the firm
FIA's are not considered securities correct answers Consumer protection Act 7/2010
2 years correct answers Time FINRA retains jurisdiction over a resigned member?
Margin accounts correct answers What type of accounts must B/D's send proxies to the customer
for?
3 years correct answers If taping phone convos has been mandated, how many years must it
continue for?
2 business days to look for them, then notify SIC on next business day, so 3 days correct answers
If securities are suspected to be lost, how soon must a member notify?
Increases net capital correct answers What do subordinated loans help with on increasing at a
B/D?
Discretionary account orders correct answers - Only if agent selects the size of the trade, the
security or whether to buy or sell. Selecting prices or time does not constitute discretion
- Principal must approve order tickets after trades.
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