Quiz-summary
0 of 10 questions completed
Questions:
- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- 10
Information
Certdemy free practice questions
You have already completed the quiz before. Hence you can not start it again.
Quiz is loading...
You must sign in or sign up to start the quiz.
You have to finish following quiz, to start this quiz:
Results
0 of 10 questions answered correctly
Your time:
Time has elapsed
You have reached 0 of 0 points, (0)
Categories
- Not categorized 0%
- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- 10
- Answered
- Review
-
Question 1 of 10
1. Question
Which of the following statements is true regarding Arbitration disclosure to associated persons signing or acknowledging form U4?
Correct
In addition to registered individuals being subject to pre-dispute clauses, many
FINRA members now require their customers to sign pre-dispute clauses as part of the application process. This allows all customer disputes to be settled in arbitration.Incorrect
In addition to registered individuals being subject to pre-dispute clauses, many
FINRA members now require their customers to sign pre-dispute clauses as part of the application process. This allows all customer disputes to be settled in arbitration. -
Question 2 of 10
2. Question
Which of the following statements is true regarding Outside business activities of registered persons?
Correct
Pursuant to the rules established in FINRA Rule 3270 Outside Business Activities of Registered Persons, no registered person may serve as an employee, independent contractor, sole proprietor, officer, director, or be compensated from any other person as a result of work done outside of the scope of relationship with his or her member firm without prior written approval from the registered person’s member firm. It is up to the member firm to specify the written form in which this prior approval must be received.
Incorrect
Pursuant to the rules established in FINRA Rule 3270 Outside Business Activities of Registered Persons, no registered person may serve as an employee, independent contractor, sole proprietor, officer, director, or be compensated from any other person as a result of work done outside of the scope of relationship with his or her member firm without prior written approval from the registered person’s member firm. It is up to the member firm to specify the written form in which this prior approval must be received.
-
Question 3 of 10
3. Question
Which of the following statements is true regarding Outside business activities of registered persons?
Correct
In determining whether or not to permit the outside business activities, the member should consider whether the activities will interfere with the registered person’s obligations to the member and how customers will react to the activities, including whether they might view the outside
activities as being part of the registered person’s role with the member firm.Incorrect
In determining whether or not to permit the outside business activities, the member should consider whether the activities will interfere with the registered person’s obligations to the member and how customers will react to the activities, including whether they might view the outside
activities as being part of the registered person’s role with the member firm. -
Question 4 of 10
4. Question
Which of the following statements is true regarding Reporting requirements?
Correct
Under FINRA Rule 4530, FINRA member firms should report violations within 30 calendar days of their occurrence. Part B of Rule 4530 allows the member time to determine that an actual violation has occurred and specifies the firm “to report to FINRA within 30 calendar days after the firm has concluded, or reasonably should have concluded, on its own that the firm or an associated person of the firm has violated any securities, insurance, commodities, financial or investment-related laws, rules, regulations or standards of conduct of any domestic or foreign regulatory body or self-regulatory organization.”
Incorrect
Under FINRA Rule 4530, FINRA member firms should report violations within 30 calendar days of their occurrence. Part B of Rule 4530 allows the member time to determine that an actual violation has occurred and specifies the firm “to report to FINRA within 30 calendar days after the firm has concluded, or reasonably should have concluded, on its own that the firm or an associated person of the firm has violated any securities, insurance, commodities, financial or investment-related laws, rules, regulations or standards of conduct of any domestic or foreign regulatory body or self-regulatory organization.”
-
Question 5 of 10
5. Question
Which of the following statements is true regarding Reporting requirements?
Correct
Rule 4530 further goes on to state that customer “statistical and summary information” regarding customer complaints should be filed each quarter by the 15th calendar day following the end of the quarter.
Incorrect
Rule 4530 further goes on to state that customer “statistical and summary information” regarding customer complaints should be filed each quarter by the 15th calendar day following the end of the quarter.
-
Question 6 of 10
6. Question
Which of the following statements is true regarding Reporting requirements?
I. Some FINRA members create their own reporting guidelines
II. The guidelines must always be at least as frequent as those outlined in Rule 4530
III. Many members set up stricter reporting guidelines
IV. Following stricter reporting dates will help do the registered person from violating FINRA rules
Correct
Some FINRA members create their own reporting guidelines, but these guidelines must always be at least as frequent as those outlined in Rule 4530. Many members set up stricter reporting guidelines. Following stricter reporting dates will help prevent the registered person from violating FINRA rules.
Incorrect
Some FINRA members create their own reporting guidelines, but these guidelines must always be at least as frequent as those outlined in Rule 4530. Many members set up stricter reporting guidelines. Following stricter reporting dates will help prevent the registered person from violating FINRA rules.
-
Question 7 of 10
7. Question
Which of the following statements is false regarding Registration requirements?
I. All the people engaged as owners in the investment banking or securities business of a member must be registered
II. All the people engaged as a representative in the investment banking or securities business of a member must be registered
III. People must pass a Qualification Examination to be registered
IV. A person must pass a Qualification Examination to be registered
Correct
Registration requirements (NASD Rule 1031) – any person engaged as a
representative in the investment banking or securities business of a member must be registered. In order to be registered, he must pass a Qualification Examination according to their category of registration.Incorrect
Registration requirements (NASD Rule 1031) – any person engaged as a
representative in the investment banking or securities business of a member must be registered. In order to be registered, he must pass a Qualification Examination according to their category of registration. -
Question 8 of 10
8. Question
Which of the following statements is true regarding Registration requirements?
I. A representative is involved in the investment banking or securities business
II. A representative is a person associated with a member including assistant officers other than principals
III. If a person’s registration has lapsed for two or more years, he is to retake a Qualification Examination
IV. If a person’s registration has lapsed for 1 year, he is to retake a Qualification Examination
Correct
A representative is defined as a person associated with a member including assistant officers other than principals, involved in the investment banking or securities business including functions such as supervision, solicitation, and training. If a person’s registration has lapsed for two or more years, the person is required to retake a Qualification Examination for Representatives corresponding to his registration.
Incorrect
A representative is defined as a person associated with a member including assistant officers other than principals, involved in the investment banking or securities business including functions such as supervision, solicitation, and training. If a person’s registration has lapsed for two or more years, the person is required to retake a Qualification Examination for Representatives corresponding to his registration.
-
Question 9 of 10
9. Question
Which of the following statements is not included in NASD Rule 1060?
I. Persons associated with a member who are not actively engaged in the investment banking or securities business
II. Persons associated with a member whose functions are solely and exclusively clerical or ministerial
III. Persons associated with an employee whose functions are solely and exclusively clerical or ministerial
IV. Persons associated with a member whose functions are related solely and
exclusively to the member’s need for nominal corporate officers or for capital
participationCorrect
NASD Rule 1060 provides for four circumstances under which a person associated with a member may be exempt from registration with the NASD, as follows:
1. Persons associated with a member whose functions are solely and exclusively clerical or ministerial;
2. Persons associated with a member who are not actively engaged in the investment banking or securities business;
3. Persons associated with a member whose functions are related solely and
exclusively to the member’s need for nominal corporate officers or for capital
participation;Incorrect
NASD Rule 1060 provides for four circumstances under which a person associated with a member may be exempt from registration with the NASD, as follows:
1. Persons associated with a member whose functions are solely and exclusively clerical or ministerial;
2. Persons associated with a member who are not actively engaged in the investment banking or securities business;
3. Persons associated with a member whose functions are related solely and
exclusively to the member’s need for nominal corporate officers or for capital
participation; -
Question 10 of 10
10. Question
Which of the following statements is not included in the functions?
I. effecting transactions on the floor of a national securities exchange and who are registered as floor members with such exchange
II. transactions in municipal securities
III. transactions in commonly used things
IV. transactions in section forwards, provided that any such person is registered with a registered futures association
Correct
NASD Rule 1060 provides for four circumstances under which a person associated with a member may be exempt from registration with the NASD. One of the circumstances is as follows:
Persons associated with a member whose functions are related solely and
exclusively to (i) effecting transactions on the floor of a national securities exchange and who are registered as floor members with such exchange, (ii) transactions in municipal securities, (iii) transactions in commodities, or (iv) transactions in security futures, provided that any such person is registered with a registered futures association.Incorrect
NASD Rule 1060 provides for four circumstances under which a person associated with a member may be exempt from registration with the NASD. One of the circumstances is as follows:
Persons associated with a member whose functions are related solely and
exclusively to (i) effecting transactions on the floor of a national securities exchange and who are registered as floor members with such exchange, (ii) transactions in municipal securities, (iii) transactions in commodities, or (iv) transactions in security futures, provided that any such person is registered with a registered futures association.