FINRA Series 31 - Quiz 7 - Pauline.new
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Question 1 of 10
1. Question
Which of the following that is an alternative to litigation or meditation in order to resolve a dispute?
Correct
The term Arbitration may also be known as an alternative to litigate for a dispute to be resolved. Under the arbitration, there is an arbitration panel that consists of two or three arbitrators that are chosen by the parties. Such panels read the pleadings that are filed by the parties, listen to different arguments, study the documents or testimonial evidence, and they also render a decision. An arbitration shall remain confidential and such documents shall not be available to the public.
Incorrect
The term Arbitration may also be known as an alternative to litigate for a dispute to be resolved. Under the arbitration, there is an arbitration panel that consists of two or three arbitrators that are chosen by the parties. Such panels read the pleadings that are filed by the parties, listen to different arguments, study the documents or testimonial evidence, and they also render a decision. An arbitration shall remain confidential and such documents shall not be available to the public.
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Question 2 of 10
2. Question
Which of the following is a term that is rendered by independent arbitrators who are chosen by the parties to issue final binding decisions?
Correct
Under the Arbitration, there is this term called Awards. This is a decision of a panel that is final and obligatory on different parties. Such awards are being rendered by the selected independent arbitrators who are chosen by such parties especially when issuing final binding decisions. There is also an arbitration forum where FINRA made available, but they do not have any part regarding the decision of the award. An award is abided by all the parties, except when an award is effectively challenged in the court within the legal time period.
Incorrect
Under the Arbitration, there is this term called Awards. This is a decision of a panel that is final and obligatory on different parties. Such awards are being rendered by the selected independent arbitrators who are chosen by such parties especially when issuing final binding decisions. There is also an arbitration forum where FINRA made available, but they do not have any part regarding the decision of the award. An award is abided by all the parties, except when an award is effectively challenged in the court within the legal time period.
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Question 3 of 10
3. Question
When must a respondent pay if a claimant is awarded damages?
Correct
When gathering an award or payment, cases end with a clearing between parties. It can be either through direct cooperation or through arbitration and may also end with an award. If an individual or a claimant is awarded with reparations within the thirty days of getting the award in writing, the respondent must pay within thirty days, but there may be exemptions when he or she documents a motion to vacate. The said claimant shall notify FINRA when a respondent did not file any a gesture to vacate and did not pay the said award within thirty days.
Incorrect
When gathering an award or payment, cases end with a clearing between parties. It can be either through direct cooperation or through arbitration and may also end with an award. If an individual or a claimant is awarded with reparations within the thirty days of getting the award in writing, the respondent must pay within thirty days, but there may be exemptions when he or she documents a motion to vacate. The said claimant shall notify FINRA when a respondent did not file any a gesture to vacate and did not pay the said award within thirty days.
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Question 4 of 10
4. Question
How much shall an individual pay when he or she did not disclose any disciplinary matter on Forms 7-R and 8-R?
Correct
Under the frequently asked question regarding the disciplinary information, it is mentioned that if a criminal did not disclose such regulatory or disciplinary matter on the 7-R or 8-R forms will result in a $1000 fee for filing of late disclosure and it can also be considered an further disqualification from the said registration. An individual must disclose all appropriate information. Each sponsor accepts identical accountability to achieve the essential due diligence, the must assess the $1000 fee for filing late disclosure.
Incorrect
Under the frequently asked question regarding the disciplinary information, it is mentioned that if a criminal did not disclose such regulatory or disciplinary matter on the 7-R or 8-R forms will result in a $1000 fee for filing of late disclosure and it can also be considered an further disqualification from the said registration. An individual must disclose all appropriate information. Each sponsor accepts identical accountability to achieve the essential due diligence, the must assess the $1000 fee for filing late disclosure.
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Question 5 of 10
5. Question
Who of the following in NFA has provided guidance on certain issues to ensure an individual understands their responsibilities?
Correct
Under the National Futures Association (NFA) Compliance Rule 2-4, for years, the Board of Directors of NFA are the ones who provide guidance regarding certain issues. Their job also is to guarantee that all the Members and Associates comprehend their responsibilities, which is to observe fair, and reasonable principles of trade and they should also act justly and equally in front of clients or customers.
Incorrect
Under the National Futures Association (NFA) Compliance Rule 2-4, for years, the Board of Directors of NFA are the ones who provide guidance regarding certain issues. Their job also is to guarantee that all the Members and Associates comprehend their responsibilities, which is to observe fair, and reasonable principles of trade and they should also act justly and equally in front of clients or customers.
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Question 6 of 10
6. Question
Who of the following are prohibited from knowingly obtaining or seeking to obtain confidential information of another individual without his/her permission?
Correct
Under the NFA Compliance Rule 2-4, it is mentioned that both the Members and Associates are prohibited in obtaining information that are confidential or trade secrets of another Member or Associate without his or her permission. They are also prohibited from irresponsibly misusing such confidential information for their own possession. Such a rule does not seek to control business disagreements between the members, but it does influence conduct that can possibly harm futures clients.
Incorrect
Under the NFA Compliance Rule 2-4, it is mentioned that both the Members and Associates are prohibited in obtaining information that are confidential or trade secrets of another Member or Associate without his or her permission. They are also prohibited from irresponsibly misusing such confidential information for their own possession. Such a rule does not seek to control business disagreements between the members, but it does influence conduct that can possibly harm futures clients.
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Question 7 of 10
7. Question
Which of the following is where a member firm should adopt written policies and procedures and they ensure that this is performed before it modifies a branch office?
Correct
Under the NFA Compliance Rule 2-9, a due diligence review must be done by each branch office, certain IB, and such personnel. It is mentioned that members must adopt such written policies and procedures, these are intended to guarantee that a vigorous due diligence review is performed before such branch office establishes or modifies. Under the due diligence process of a member firm, it includes that a business must be reviewed that is conducted by the branch office or a certain IB. Lastly, they must ensure the background and employment history of its personnel to make sure they are capable.
Incorrect
Under the NFA Compliance Rule 2-9, a due diligence review must be done by each branch office, certain IB, and such personnel. It is mentioned that members must adopt such written policies and procedures, these are intended to guarantee that a vigorous due diligence review is performed before such branch office establishes or modifies. Under the due diligence process of a member firm, it includes that a business must be reviewed that is conducted by the branch office or a certain IB. Lastly, they must ensure the background and employment history of its personnel to make sure they are capable.
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Question 8 of 10
8. Question
Which of the following a member firm should prepare for describing an inspection?
Correct
Under the Annual Inspection Requirement, an inspection report was mentioned. This shows that after completing either a remote or on-site inspection, a written report regarding the inspection such as its scope, summary, findings must be prepared and done by the member firm. All the findings and insufficiencies must be discussed with the guaranteed IB managers, principals, supervisory personnel, and branch offices. They should also do follow-up procedures to see that such deficiencies will be fixed.
Incorrect
Under the Annual Inspection Requirement, an inspection report was mentioned. This shows that after completing either a remote or on-site inspection, a written report regarding the inspection such as its scope, summary, findings must be prepared and done by the member firm. All the findings and insufficiencies must be discussed with the guaranteed IB managers, principals, supervisory personnel, and branch offices. They should also do follow-up procedures to see that such deficiencies will be fixed.
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Question 9 of 10
9. Question
Who of the following are required for training about soliciting and handling customer accounts?
Correct
As mentioned in the NFA Compliance Rule 2-9, under the ongoing training, it is stated that certain Associated Persons (AP) are required to have a training about soliciting and management of the accounts of customers. A Member firm may have to provide an Associated Person with a specific training regarding the proper practices in sales if an AP has worked before at other firms disciplined by NFA or CFTC for fraud and had his or her training from other firms.
Incorrect
As mentioned in the NFA Compliance Rule 2-9, under the ongoing training, it is stated that certain Associated Persons (AP) are required to have a training about soliciting and management of the accounts of customers. A Member firm may have to provide an Associated Person with a specific training regarding the proper practices in sales if an AP has worked before at other firms disciplined by NFA or CFTC for fraud and had his or her training from other firms.
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Question 10 of 10
10. Question
In the Compliance Rule 2-9, under the Supervisory Procedures for Branch Offices and Guaranteed IBs, which of the following needs to be ensured by a member where they should adopt the supervisory procedures reasonably designed that are used by a branch office or guarantee IB?
Correct
In the NFA Compliance Rule 2-9, under the Supervisory Procedures for Branch Offices and Guaranteed IBs, one of the procedures is the Promotional Material. It is stated that the members shall adopt supervisory procedures to guarantee that the promotional materials that are used by a branch office and guaranteed IBs have been accepted and reviewed by the suitable supervisory personnel. Member firms shall also verify the following documentation of reviews are reserved and such offices and IBs are not using those materials that are not received prior approval.
Incorrect
In the NFA Compliance Rule 2-9, under the Supervisory Procedures for Branch Offices and Guaranteed IBs, one of the procedures is the Promotional Material. It is stated that the members shall adopt supervisory procedures to guarantee that the promotional materials that are used by a branch office and guaranteed IBs have been accepted and reviewed by the suitable supervisory personnel. Member firms shall also verify the following documentation of reviews are reserved and such offices and IBs are not using those materials that are not received prior approval.