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Question 1 of 10
1. Question
In the FINRA Rule 11870 (Customer Account Transfer Contracts), which of the following statement(s) is/are correct if a “close-out” is not completed on the day specified in the notice?
Correct
In the FINRA Rule 11870 (Customer Account Transfer Contracts), In the event that a “close-out” is not completed on the day specified in the notice, said notice shall expire at the close of business on the day specified in the notice, or if extended, at the close of business on the last day of the extension.
Incorrect
In the FINRA Rule 11870 (Customer Account Transfer Contracts), In the event that a “close-out” is not completed on the day specified in the notice, said notice shall expire at the close of business on the day specified in the notice, or if extended, at the close of business on the last day of the extension.
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Question 2 of 10
2. Question
In the FINRA Rule 11870 (Customer Account Transfer Contracts), which of the following member has the responsibility to obtain the approval of its custodian/trustee accepting a customer’s retirement plan securities account before submitting a transfer instruction for such account assets to the carrying member?
Correct
In the FINRA Rule 11870 (Customer Account Transfer Contracts), it is the responsibility of the receiving member to obtain the approval of its custodian/trustee accepting a customer’s retirement plan securities account before submitting a transfer instruction for such account assets to the carrying member or its custodian/trustee to facilitate the transfer of the account assets.
Incorrect
In the FINRA Rule 11870 (Customer Account Transfer Contracts), it is the responsibility of the receiving member to obtain the approval of its custodian/trustee accepting a customer’s retirement plan securities account before submitting a transfer instruction for such account assets to the carrying member or its custodian/trustee to facilitate the transfer of the account assets.
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Question 3 of 10
3. Question
In the FINRA Rule 11870 (Customer Account Transfer Contracts), what is the period of time each member is required to transfer credit balances (both cash and securities) that occur in such transferred account assets within (10) ten business days after the credit balances accrue to the account?
Correct
In the FINRA Rule 11870 (Customer Account Transfer Contracts), each member (including members that do not utilize automated customer securities account asset transfer facilities) is required, for a minimum period of six (6) months after the transfer of securities account assets in whole is completed, to transfer credit balances (both cash and securities) that occur in such transferred account assets within (10) ten business days after the credit balances accrue to the account.
Incorrect
In the FINRA Rule 11870 (Customer Account Transfer Contracts), each member (including members that do not utilize automated customer securities account asset transfer facilities) is required, for a minimum period of six (6) months after the transfer of securities account assets in whole is completed, to transfer credit balances (both cash and securities) that occur in such transferred account assets within (10) ten business days after the credit balances accrue to the account.
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Question 4 of 10
4. Question
What type of action should be taken by a member to affect and supervise the transfer of securities account assets pursuant to FINRA Rule 11870 (Customer Account Transfer Contracts) that are reasonably designed to achieve compliance with applicable securities laws and regulations, and with applicable FINRA rules?
Correct
In the FINRA Rule 11870 (Customer Account Transfer Contracts), Members must establish, maintain and enforce written procedures to affect and supervise the transfer of securities account assets pursuant to this Rule that is reasonably designed to achieve compliance with applicable securities laws and regulations, and with applicable FINRA rules.
Incorrect
In the FINRA Rule 11870 (Customer Account Transfer Contracts), Members must establish, maintain and enforce written procedures to affect and supervise the transfer of securities account assets pursuant to this Rule that is reasonably designed to achieve compliance with applicable securities laws and regulations, and with applicable FINRA rules.
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Question 5 of 10
5. Question
In the FINRA Rule 11870 (Customer Account Transfer Contracts), which of the following authority is responsible for informing the customer that the choice of method of disposition of assets may result in liability for the payment of taxes and penalties with respect to such assets?
Correct
In the FINRA Rule 11880 (Settlement of Syndicate Accounts), with respect to the transfer of retirement plan securities account assets, the carrying member is responsible for informing the customer that the choice of method of disposition of such assets may result in liability for the payment of taxes and penalties with respect to such assets.
Incorrect
In the FINRA Rule 11880 (Settlement of Syndicate Accounts), with respect to the transfer of retirement plan securities account assets, the carrying member is responsible for informing the customer that the choice of method of disposition of such assets may result in liability for the payment of taxes and penalties with respect to such assets.
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Question 6 of 10
6. Question
In the FINRA Rule 11870 (Customer Account Transfer Contracts), which of the following term describes the meaning of any syndicate formed in connection with a public offering to distribute all or part of an issue of corporate securities by sales made directly to the public by or through participants in such syndicate?
Correct
In the FINRA Rule 11880 (Settlement of Syndicate Accounts), “Selling syndicate” means any syndicate formed in connection with a public offering to distribute all or part of an issue of corporate securities by sales made directly to the public by or through participants in such syndicate.
Incorrect
In the FINRA Rule 11880 (Settlement of Syndicate Accounts), “Selling syndicate” means any syndicate formed in connection with a public offering to distribute all or part of an issue of corporate securities by sales made directly to the public by or through participants in such syndicate.
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Question 7 of 10
7. Question
In the FINRA Rule 11870 (Customer Account Transfer Contracts), which of the following term describes the meaning of an account formed by members of the selling syndicate for the purpose of purchasing and distributing the corporate securities of a public offering?
Correct
In the FINRA Rule 11880 (Settlement of Syndicate Accounts), a “Syndicate account” means an account formed by members of the selling syndicate for the purpose of purchasing and distributing the corporate securities of a public offering.
Incorrect
In the FINRA Rule 11880 (Settlement of Syndicate Accounts), a “Syndicate account” means an account formed by members of the selling syndicate for the purpose of purchasing and distributing the corporate securities of a public offering.
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Question 8 of 10
8. Question
In the FINRA Rule 11870 (Customer Account Transfer Contracts), within how many days following the syndicate settlement date, the final settlement of syndicate accounts should be effected by the syndicate manager?
Correct
In the FINRA Rule 11870 (Customer Account Transfer Contracts), the final settlement of syndicate accounts shall be effected by the syndicate manager within 90 days following the syndicate settlement date.
Incorrect
In the FINRA Rule 11870 (Customer Account Transfer Contracts), the final settlement of syndicate accounts shall be effected by the syndicate manager within 90 days following the syndicate settlement date.
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Question 9 of 10
9. Question
In the FINRA Rule 11870 (Customer Account Transfer Contracts), at what time the syndicate manager should provide to each member of the selling syndicate an itemized statement of syndicate expenses?
Correct
In the FINRA Rule 11870 (Customer Account Transfer Contracts), no later than the date of the final settlement of the syndicate account, the syndicate manager shall provide to each member of the selling syndicate an itemized statement of syndicate expenses.
Incorrect
In the FINRA Rule 11870 (Customer Account Transfer Contracts), no later than the date of the final settlement of the syndicate account, the syndicate manager shall provide to each member of the selling syndicate an itemized statement of syndicate expenses.
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Question 10 of 10
10. Question
In the FINRA Rule 11870 (Customer Account Transfer Contracts), at what time the syndicate manager of a public offering underwritten on a “firm-commitment” basis should notify the FINRA’s Operation Department of any anticipated delay in the closing of such offering beyond the closing date in the offering document?
Correct
In the FINRA Rule 11870 (Customer Account Transfer Contracts), the syndicate manager of a public offering underwritten on a “firm-commitment” basis shall, immediately, but in no event later than the scheduled closing date, notify the FINRA’s Operation Department of any anticipated delay in the closing of such offering beyond the closing date in the offering document or any subsequent delays in the closing date previously reported pursuant to this Rule.
Incorrect
In the FINRA Rule 11870 (Customer Account Transfer Contracts), the syndicate manager of a public offering underwritten on a “firm-commitment” basis shall, immediately, but in no event later than the scheduled closing date, notify the FINRA’s Operation Department of any anticipated delay in the closing of such offering beyond the closing date in the offering document or any subsequent delays in the closing date previously reported pursuant to this Rule.