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Question 1 of 10
1. Question
For purposes of FINRA Rule 4513, how is a “customer complaint” be defined?
Correct
A customer complaint, as defined by FINRA Rule 4513, is grievance of a customer of the authorised person whom the member in connection with such transaction takes action regarding it. Activities executed by any member may be complained by customers whom they make the transaction with. Transactions may be solicitation or disposition of securities or funds to the customer.
Incorrect
A customer complaint, as defined by FINRA Rule 4513, is grievance of a customer of the authorised person whom the member in connection with such transaction takes action regarding it. Activities executed by any member may be complained by customers whom they make the transaction with. Transactions may be solicitation or disposition of securities or funds to the customer.
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Question 2 of 10
2. Question
In which of the following situations may a customer file a complaint with FINRA?
I. If the customer believes that the brokerage firm has conflicts with his acquaintances
II. If the customer believes that the salesperson has treated them unfairly
III. If the customer is not satisfied with the response of the firm with their issues
IV. If the customer has any personal arguments with the salesperson or brokerage firmCorrect
Entering the business in the securities industry must satisfy everyone involved by treating them fairly and efficiently to avoid problems to arise. If a customer is not satisfied with the response of the firm with their issues, and if he believes that a salesperson has treated them unfairly, then he may file a complaint with FINRA for further investigations.
Incorrect
Entering the business in the securities industry must satisfy everyone involved by treating them fairly and efficiently to avoid problems to arise. If a customer is not satisfied with the response of the firm with their issues, and if he believes that a salesperson has treated them unfairly, then he may file a complaint with FINRA for further investigations.
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Question 3 of 10
3. Question
As a disciplinary procedure of the National Futures Association, which of the following must be done by a Panel during hearings?
I. The panel shall ask other members to decide for actions to be taken right after the hearing.
II. The panel shall decide whether the respondent committed the alleged acts or omissions.
III. The panel meets immediately following the hearing.
IV. The panel asks both parties their opinion on whether the act is a violation of the rule or not.Correct
The decision of hearings come from the Panel. The panel meets immediately after the hearing to decide whether the respondent committed the alleged acts or omissions. It is included in their decision of it is a violation of National Futures Association Rules. After discovering if an alleged act is a violation in the rule, the panel must decide immediately on sanctions appropriate for each violation.
Incorrect
The decision of hearings come from the Panel. The panel meets immediately after the hearing to decide whether the respondent committed the alleged acts or omissions. It is included in their decision of it is a violation of National Futures Association Rules. After discovering if an alleged act is a violation in the rule, the panel must decide immediately on sanctions appropriate for each violation.
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Question 4 of 10
4. Question
Who is required to attend the deliberation to answer any procedural questions that may arise in a hearing of the National Futures Association?
Correct
The reviewing of the substance of the deliberations in order to properly draft the findings and decision are to be done by the Counsel of the Panel. They are required to attend the deliberation to answer procedural questions that would arise in a hearing. After the deliberation, it is now the Panel’s turn to decide for sanctions to be taken for each violation.
Incorrect
The reviewing of the substance of the deliberations in order to properly draft the findings and decision are to be done by the Counsel of the Panel. They are required to attend the deliberation to answer procedural questions that would arise in a hearing. After the deliberation, it is now the Panel’s turn to decide for sanctions to be taken for each violation.
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Question 5 of 10
5. Question
Which of the following actions are made by the Counsel of the Panel for hearings of the National Futures Association?
I. They properly draft the findings and decision for the panel.
II. They send the decisions on the respondents by certified or regular mail.
III. They answer procedural questions that arise from the hearing.
IV. They provide copies of the decision to the Appeals Committee.Correct
The Counsel of the Panel properly drafts the findings and decisions for the panel for organization purposes. They support the panel in answering any procedural questions during the deliberations. After it is finalized, the Panel shall send the decisions by certified or regular mail. Copies shall be provided to the Appeals Committee by the Panel.
Incorrect
The Counsel of the Panel properly drafts the findings and decisions for the panel for organization purposes. They support the panel in answering any procedural questions during the deliberations. After it is finalized, the Panel shall send the decisions by certified or regular mail. Copies shall be provided to the Appeals Committee by the Panel.
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Question 6 of 10
6. Question
Which of the following penalties may be imposed by the BBC or Hearing Panel pursuant to NFA Compliance Rule 3-14?
I. Expulsion or suspension
II. Retention of certification
III. A monetary fine which does not exceed $250,000
IV. A monetary fine which does not exceed $500,000Correct
The potential penalties which may be imposed by the BBC or Hearing Panel pursuant to NFA Compliance are a monetary fine of not more than $250,000 and expulsion or suspension. In addition to these penalties are a bar or suspension on an associating with an NFA member, censure or reprimand, and an order to cease and desist. The monetary fine shall be paid per violation and not per period of numerous violations.
Incorrect
The potential penalties which may be imposed by the BBC or Hearing Panel pursuant to NFA Compliance are a monetary fine of not more than $250,000 and expulsion or suspension. In addition to these penalties are a bar or suspension on an associating with an NFA member, censure or reprimand, and an order to cease and desist. The monetary fine shall be paid per violation and not per period of numerous violations.
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Question 7 of 10
7. Question
Which of the following are requirements for remedial actions imposed under the “other fitting penalty” section?
I. To tape customer solicitation
II. To pre-file promotional materials
III. To obtain sponsor certification
IV. To obtain reasonable assurance for the companyCorrect
To tape customer solicitation, to pre-file promotional materials, or to obtain sponsor certification are the requirements included for the remedial actions imposed under the “other fitting penalty”. Restitution may be sought in a limited number of cases only where the losses can be specifically identified by customers.
Incorrect
To tape customer solicitation, to pre-file promotional materials, or to obtain sponsor certification are the requirements included for the remedial actions imposed under the “other fitting penalty”. Restitution may be sought in a limited number of cases only where the losses can be specifically identified by customers.
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Question 8 of 10
8. Question
Under NFA Compliance Rule 3-13, when may a respondent appeal any adverse decision of the hearing panel to the Appeals Committee?
Correct
A respondent may appeal any adverse decision of the hearing panel to the Appeals Committee. Its process is to provide notice within 15 days of the decision. However, the Appeals Committee has the discretion to determine that it will review a decision, or may grant a petition for appeals from the Compliance Department.
Incorrect
A respondent may appeal any adverse decision of the hearing panel to the Appeals Committee. Its process is to provide notice within 15 days of the decision. However, the Appeals Committee has the discretion to determine that it will review a decision, or may grant a petition for appeals from the Compliance Department.
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Question 9 of 10
9. Question
Which of the following is the role of the Appeals Committee in every hearing?
Correct
To ensure that different hearing panels do not produce disparate results is what an Appeals Committee does in every hearing. It may be a difficult function to fulfill, but it must be done given the paucity of both appeals and cases decided at the hearing. The petitions for appeal may be granted from the Compliance department by the Appeals Committee.
Incorrect
To ensure that different hearing panels do not produce disparate results is what an Appeals Committee does in every hearing. It may be a difficult function to fulfill, but it must be done given the paucity of both appeals and cases decided at the hearing. The petitions for appeal may be granted from the Compliance department by the Appeals Committee.
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Question 10 of 10
10. Question
Which of the following teams will provide the Panel with a recommendation on sanctions in cases tried to a Hearing Panel?
Correct
The National Futures Association Team that prepared the case will recommend sanctions in cases tried to a Hearing Panel. It will then be passed to the BBC or Hearing Panel to decide whether the sanction is acceptable or needs revision. One of the factors in deciding whether the sanction is acceptable or not is the policy guidelines for SRO Sanctions provided by the CFTC.
Incorrect
The National Futures Association Team that prepared the case will recommend sanctions in cases tried to a Hearing Panel. It will then be passed to the BBC or Hearing Panel to decide whether the sanction is acceptable or needs revision. One of the factors in deciding whether the sanction is acceptable or not is the policy guidelines for SRO Sanctions provided by the CFTC.