Series 79 Chapter 4 || with 100% Error-free Answers.
Associated Person correct answers Any natural person who is registered or has applied for
registration; partners, officers, directors, etc., of a member;
FINRA By-laws Article III, Section 3 correct answers Addresses ineligibility of certain persons
for membership or association; Board of FINRA can basically do what it wants
FINRA By-laws Article V, Section 4 correct answers Retention of Jurisdiction
FINRA may retain jurisdiction to file a complaint against a registered person even after that
person is no longer associated with a member or has had their registration revoked or cancelled ;
FINRA may not file such a complaint more than two years after the effective date of
termination, cancellation, or revocation of registration or, in the case of an unregistered person,
two years after the person ceased to be associated with a member
FINRA By-Laws Article V, Section 1 correct answers Qualification Requirement
No member shall permit any person associated with the member to engage in the investment
banking or securities business unless the member determines that such person satisfies the
qualification requirements established under Article III, Section 2 and is not subject to a
disqualification under Article III, Section 4.
NASD Rule 1000 Series correct answers Adopted by FINRA
Addresses membership, registration and qualification requirements
NASD Rule 1031 correct answers Reps must be registered
Representative correct answers An associated person (other than a principal) who is "engaged in
the investment banking or securities business for the member including the functions of
supervision, solicitation or conduct of business in securities" or training associated persons in
these functions
NASD Rule 1032 correct answers Limited Representation - Investment Banking
Investment Banking Training correct answers An associated person who is a participant in a
member's new employee training program can delay registration (1) for up to six months from
the time he or she "first engages within the program in" investment banking activities, but (2) "in
no event more than two years after commencing participation in the training program." The
registration requirement kicks in whenever either of these time periods runs out.
NASD Rule 1070 correct answers Addresses qualification examinations, and the possibility of
getting a waiver from the examination requirement;
Note the emphasis on exceptional cases; waiver is not a routine way to bypass the exam. The rule
also observes that old age and "physical infirmity" are not by themselves grounds for waiver,
although experience in fields "ancillary to the investment banking or securities business" may be.
Can sit for Series 79 exam 30 days later if fail. Three times in a row of failures must wait 180
days.
, NASD Rule 1080 correct answers Can't cheat, take exam info with you...etc
NASD Rule 3010(e) correct answers Requirement to examine credentials
Each member shall have the responsibility and duty to ascertain by investigation the good
character, business repute, qualifications, and experience of any person prior to making such a
certification in the application of such person for registration with this Association.
Must obtain U5 from previous employer within 60 days of filing registration
NYSE Rule 345 correct answers No member or member organization shall permit any natural
person to perform regularly the duties customarily performed by a securities lending
representative or a direct supervisor of such, unless such person is registered with, qualified by
and is acceptable to the Exchange.
NYSE Rule 345.11 correct answers Requires members to "thoroughly investigate the previous
record of persons whom they contemplate employing" if the persons are required to (1) be
registered, (2) handle, process, or maintain books or records relating to money or securities, or
(3) supervise people in either of the first two categories
NYSE Rule 345.11 Activities correct answers Verify info in U4 and review most recent U5;
Verify info via background check;
Keep adequate records on file including signed U4
Applicants must supply copy of U5 within 2 business days
Fingerprinting correct answers Through its Exchange Act Rule 17f-2, the SEC generally requires
all brokers, dealers, and members of a national securities exchange to obtain the fingerprints of
every partner, employee, director and officer, and to submit those fingerprints to the FBI. (In
practice, the fingerprint cards are submitted to FINRA, which forwards them to the feds.)
You also get an exemption if you submit fingerprints in good faith but the FBI returns them
three times in a row as illegible.
FINRA Rule 1250(a) (formerly NASD Rule 1120(a)) correct answers Requires every registered
person to complete a Regulatory Element of continuing education. A newly registered person
must complete the Regulatory Element upon the second anniversary of their initial registration
date; thereafter, each registered person must complete the Regulatory Element every three years.
2years inactive considered administratively terminated
Military Service correct answers Placed on inactive status and continuing education requirements
suspended.
Two year license expiration delayed until 90 days after service ends.
Statutory Disqualification correct answers 1) barred, expelled, or suspended from membership or
participation in any SRO or securities, commodities, or futures exchange, or one of their foreign
equivalents;
2) SEC denied, barred, suspended or revoked registrations;
3) Association with persons in first two categories;
