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Question 1 of 10
1. Question
In the FINRA Rule 2231 (Customer Account Statements), at what time the member may include a per share estimated value reflecting an appraised valuation disclosed in the Issuer Report?
Correct
In the FINRA Rule 2231 (Customer Account Statements), At any time, the member may include a per share estimated value reflecting an appraised valuation disclosed in the Issuer Report, which shall be consistent with the valuation requirements of the 1940 Act and the rules thereunder.
Incorrect
In the FINRA Rule 2231 (Customer Account Statements), At any time, the member may include a per share estimated value reflecting an appraised valuation disclosed in the Issuer Report, which shall be consistent with the valuation requirements of the 1940 Act and the rules thereunder.
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Question 2 of 10
2. Question
In the FINRA Rule 4370 (Business Continuity Plans and Emergency Contact Information), which of the following authority must create and maintain a written business continuity plan identifying procedures relating to an emergency or significant business disruption?
Correct
In the FINRA Rule 4370 (Business Continuity Plans and Emergency Contact Information), each member must create and maintain a written business continuity plan identifying procedures relating to an emergency or significant business disruption. Such procedures must be reasonably designed to enable the member to meet its existing obligations to customers. In addition, such procedures must address the member’s existing relationships with other broker-dealers and counter-parties. The business continuity plan must be made available promptly upon request to FINRA staff.
Incorrect
In the FINRA Rule 4370 (Business Continuity Plans and Emergency Contact Information), each member must create and maintain a written business continuity plan identifying procedures relating to an emergency or significant business disruption. Such procedures must be reasonably designed to enable the member to meet its existing obligations to customers. In addition, such procedures must address the member’s existing relationships with other broker-dealers and counter-parties. The business continuity plan must be made available promptly upon request to FINRA staff.
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Question 3 of 10
3. Question
In the FINRA Rule 4370 (Business Continuity Plans and Emergency Contact Information), what is the time interval to conduct a review of member’s business continuity plan to determine whether any modifications are necessary in light of changes to the member’s operations, structure, business, or location?
Correct
In the FINRA Rule 4370 (Business Continuity Plans and Emergency Contact Information), each member must update its plan in the event of any material change to the member’s operations, structure, business or location. Each member must also conduct an annual review of its business continuity plan to determine whether any modifications are necessary in light of changes to the member’s operations, structure, business, or location.
Incorrect
In the FINRA Rule 4370 (Business Continuity Plans and Emergency Contact Information), each member must update its plan in the event of any material change to the member’s operations, structure, business or location. Each member must also conduct an annual review of its business continuity plan to determine whether any modifications are necessary in light of changes to the member’s operations, structure, business, or location.
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Question 4 of 10
4. Question
In the FINRA Rule 4370 (Business Continuity Plans and Emergency Contact Information), which of the following must address each business continuity plan that is flexible and may be tailored to the size and needs of a member?
Correct
In the FINRA Rule 4370 (Business Continuity Plans and Emergency Contact Information), the elements that comprise a business continuity plan are flexible and may be tailored to the size and needs of a member. Each plan must at a minimum address the following:-
(a) Data back-up and recovery (hard copy and electronic).
(b) All mission critical systems.
(c) Financial and operational assessments.
(d) Alternate communications between customers and the member.
(e) Alternate communications between the member and its employees.
(f) Alternate physical location of employees.
(g) Critical business constituent, bank, and counter-party impact.
(h) Regulatory reporting.
(i) Communications with regulators.
(j) How the member will assure customers’ prompt access to their funds and securities in the event that the member determines that it is unable to continue its business.Incorrect
In the FINRA Rule 4370 (Business Continuity Plans and Emergency Contact Information), the elements that comprise a business continuity plan are flexible and may be tailored to the size and needs of a member. Each plan must at a minimum address the following:-
(a) Data back-up and recovery (hard copy and electronic).
(b) All mission critical systems.
(c) Financial and operational assessments.
(d) Alternate communications between customers and the member.
(e) Alternate communications between the member and its employees.
(f) Alternate physical location of employees.
(g) Critical business constituent, bank, and counter-party impact.
(h) Regulatory reporting.
(i) Communications with regulators.
(j) How the member will assure customers’ prompt access to their funds and securities in the event that the member determines that it is unable to continue its business. -
Question 5 of 10
5. Question
In the FINRA Rule 4370 (Business Continuity Plans and Emergency Contact Information), how many associated persons should be included in the emergency contact information for the member as an emergency contact person?
Correct
In the FINRA Rule 4370 (Business Continuity Plans and Emergency Contact Information), the emergency contact information for the member includes the designation of two associated persons as emergency contact persons.
Incorrect
In the FINRA Rule 4370 (Business Continuity Plans and Emergency Contact Information), the emergency contact information for the member includes the designation of two associated persons as emergency contact persons.
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Question 6 of 10
6. Question
In the FINRA Rule 4370 (Business Continuity Plans and Emergency Contact Information), which of the following authority specify the means for updating the member’s emergency contact information in the event of any material change?
Correct
In the FINRA Rule 4370 (Business Continuity Plans and Emergency Contact Information), each member must promptly update its emergency contact information in the event of any material change via such electronic or other means as FINRA may specify.
Incorrect
In the FINRA Rule 4370 (Business Continuity Plans and Emergency Contact Information), each member must promptly update its emergency contact information in the event of any material change via such electronic or other means as FINRA may specify.
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Question 7 of 10
7. Question
In the FINRA Rule 4370 (Business Continuity Plans and Emergency Contact Information), which of the following statement best describes the term “Mission critical system”?
Correct
In the FINRA Rule 4370 (Business Continuity Plans and Emergency Contact Information), “Financial and operational assessment” means a set of written procedures that allow a member to identify changes in its operational, financial, and credit risk exposures.
Incorrect
In the FINRA Rule 4370 (Business Continuity Plans and Emergency Contact Information), “Financial and operational assessment” means a set of written procedures that allow a member to identify changes in its operational, financial, and credit risk exposures.
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Question 8 of 10
8. Question
In the FINRA Rule 4511 (General Requirements), what is the period of time FINRA books and records should be preserved by a member for which there are no specified period under the FINRA rules or applicable Exchange Act rules?
Correct
In the FINRA Rule 4511 (General Requirements), members shall preserve for a period of at least six years those FINRA books and records for which there are no specified period under the FINRA rules or applicable Exchange Act rules.
Incorrect
In the FINRA Rule 4511 (General Requirements), members shall preserve for a period of at least six years those FINRA books and records for which there are no specified period under the FINRA rules or applicable Exchange Act rules.
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Question 9 of 10
9. Question
In the FINRA Rule 4512 (Customer Account Information), which of the following information should be maintained by each member for each account?
Correct
In the FINRA Rule 4512 (Customer Account Information), the following information should be maintained by each member for each account:-
(a) Customer’s name and residence.
(b) Whether customer is of legal age.
(c) Name(s) of the associated person(s), if any, responsible for the account, and if multiple individuals are assigned responsibility for the account, a record indicating the scope of their responsibilities with respect to the account, provided, however, that this requirement shall not apply to an institutional account.
(d) Signature of the partner, officer or manager denoting that the account has been accepted in accordance with the member’s policies and procedures for acceptance of accounts.
(e) If the customer is a corporation, partnership or other legal entity, the names of any persons authorized to transact business on behalf of the entity.
(f) Subject to Supplementary Material .06, name of and contact information for a trusted contact person age 18 or older who may be contacted about the customer’s account; provided, however, that this requirement shall not apply to an institutional account.Incorrect
In the FINRA Rule 4512 (Customer Account Information), the following information should be maintained by each member for each account:-
(a) Customer’s name and residence.
(b) Whether customer is of legal age.
(c) Name(s) of the associated person(s), if any, responsible for the account, and if multiple individuals are assigned responsibility for the account, a record indicating the scope of their responsibilities with respect to the account, provided, however, that this requirement shall not apply to an institutional account.
(d) Signature of the partner, officer or manager denoting that the account has been accepted in accordance with the member’s policies and procedures for acceptance of accounts.
(e) If the customer is a corporation, partnership or other legal entity, the names of any persons authorized to transact business on behalf of the entity.
(f) Subject to Supplementary Material .06, name of and contact information for a trusted contact person age 18 or older who may be contacted about the customer’s account; provided, however, that this requirement shall not apply to an institutional account. -
Question 10 of 10
10. Question
In the FINRA Rule 4512 (Customer Account Information), what is the period of time a member shall preserve a record of any customer account information that subsequently is updated?
Correct
In the FINRA Rule 4512 (Customer Account Information), members shall preserve a record of any customer account information that subsequently is updated for at least six years after the date that such information is updated.
Incorrect
In the FINRA Rule 4512 (Customer Account Information), members shall preserve a record of any customer account information that subsequently is updated for at least six years after the date that such information is updated.