Quiz-summary
0 of 10 questions completed
Questions:
- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- 10
Information
Certdemy Premium Access
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 are correct about the Legal Edge Database used by the National Futures Association?
I. It is where the BBC cases can be accessed by the NFA staff.
II. It does not provide information regarding the disciplinary history of the respondent.
III. It is accessible to the public depending on the agreement with both parties.
IV. It provides information regarding the details of the rule violations for prior cases.Correct
The Legal Edge Database is where the National Futures Association staff can access all BBC cases. This allows users to search for cases and their rule violations. However, the Legal Edge Database shall not provide information regarding the customer losses, disciplinary history of the respondent, or some specific factors indicating the seriousness of the offense.
Incorrect
The Legal Edge Database is where the National Futures Association staff can access all BBC cases. This allows users to search for cases and their rule violations. However, the Legal Edge Database shall not provide information regarding the customer losses, disciplinary history of the respondent, or some specific factors indicating the seriousness of the offense.
-
Question 2 of 10
2. Question
Which of the following may be recommended by the NFA staff to be reviewed by the Division staff regarding the processing of sanctions?
I. The particular sanction in each case
II. The acceptance of a settlement offer
III. The terms and conditions in accepting the offer
IV. The fact that the appeals are reasonable or notCorrect
A particular sanction in each case and the acceptance of a settlement offer are recommended by the NFA staff to be submitted to the Division staff. The Division staff will then review the transcripts for the case in the sample which was tried to a Hearing Panel. Together with the transcripts for the case in the sample, the Division staff also review the two cases outside the sample.
Incorrect
A particular sanction in each case and the acceptance of a settlement offer are recommended by the NFA staff to be submitted to the Division staff. The Division staff will then review the transcripts for the case in the sample which was tried to a Hearing Panel. Together with the transcripts for the case in the sample, the Division staff also review the two cases outside the sample.
-
Question 3 of 10
3. Question
Which of the following shall be explained by NFA staff in making recommendations for sanctions or for acceptance of settlement offers?
I. How the sanctions comply with the NFA rules
II. How the proposed penalties relate to customer losses
III. How sanctions are proposed in a case imposed in comparable previous cases
IV. How consideration of the relevant factors leads to their recommendationCorrect
The Division staff founded that the NFA staff do not clarify the root of the recommendations they provided. The NFA staff shall explain how the proposed penalties relate to customer losses, how sanctions are proposed in a case imposed in comparable previous cases, and how the consideration of the relevant factors leads to their recommendation. It shall be explained by the NFA staff in the most conclusory terms.
Incorrect
The Division staff founded that the NFA staff do not clarify the root of the recommendations they provided. The NFA staff shall explain how the proposed penalties relate to customer losses, how sanctions are proposed in a case imposed in comparable previous cases, and how the consideration of the relevant factors leads to their recommendation. It shall be explained by the NFA staff in the most conclusory terms.
-
Question 4 of 10
4. Question
Under the disciplinary procedures by NFA, what are the three reasons to be documented for recommending a particular level of sanctions in a specific case?
I. Reasons to recommend a specific level of sanctions
II. Reasons why a sanction does not comply with the NFA rules, if applicable.
III. Reasons for a particular level of sanctions in one case considering a level of sanctions in future cases
IV. Written evidence of the factors consideredCorrect
There are three reasons to be documented by the NFA staff in compliance with the NFA rules. The first is the reason to recommend a specific level of sanctions. Even the most conscientious discussion shall be provided. The second is the reason for a particular level of sanctions. It shall provide important information to consider sanctions in future cases. Lastly, written evidence of the mentioned factors shall be considered.
Incorrect
There are three reasons to be documented by the NFA staff in compliance with the NFA rules. The first is the reason to recommend a specific level of sanctions. Even the most conscientious discussion shall be provided. The second is the reason for a particular level of sanctions. It shall provide important information to consider sanctions in future cases. Lastly, written evidence of the mentioned factors shall be considered.
-
Question 5 of 10
5. Question
To further improve the NFA’s Program, what are the recommendations to be made by the Division?
I. To provide a recommendation on how to avoid misstatements on the audit report of independent public accountants
II. To obtain written evidence that the violations discovered by NFA have been corrected by the member
III. To develop internal guidelines for progressive action to be taken when a repetitive problem occurred
IV. To improve documentation of their rationale in for making recommendations on sanctionsCorrect
The Division recommends the NFA staff to obtain written evidence that the violations discovered by NFA during audits have already been corrected. Violations may warrant remediation rather than formal discipline. Internal guidelines must also be developed especially when repetitive problems occurred. Documentation may be improved by the NFA staff by making an explanation of how the recommendation on sanctions was formed.
Incorrect
The Division recommends the NFA staff to obtain written evidence that the violations discovered by NFA during audits have already been corrected. Violations may warrant remediation rather than formal discipline. Internal guidelines must also be developed especially when repetitive problems occurred. Documentation may be improved by the NFA staff by making an explanation of how the recommendation on sanctions was formed.
-
Question 6 of 10
6. Question
What are the factors discussed in the CFTC policy guidelines for SRO sanctions?
I. The customer benefits
II. The seriousness of the offense
III. The disposition of similar prior cases
IV. The member’s disciplinary historyCorrect
Some of the factors mentioned by the CFTC policy guidelines regarding SRO sanctions are the seriousness of the offense, the disposition of similar prior cases, the member’s disciplinary history, and the customer losses. Actions by NFA, CFTC, other SROs, and other regulatory agencies are also considered as its factor.
Incorrect
Some of the factors mentioned by the CFTC policy guidelines regarding SRO sanctions are the seriousness of the offense, the disposition of similar prior cases, the member’s disciplinary history, and the customer losses. Actions by NFA, CFTC, other SROs, and other regulatory agencies are also considered as its factor.
-
Question 7 of 10
7. Question
How does the rationale for acceptance of a settlement offer is generally presented?
Correct
The rationale for acceptance of a settlement offer is generally presented in one or two sentences. It shall provide a very little explanation of the reason for recommending the specific sanctions to be imposed. Lack of documentation and explanation makes it difficult for NFA staff to warrant specific sanctions for lack of proper evidence and unreliable factors.
Incorrect
The rationale for acceptance of a settlement offer is generally presented in one or two sentences. It shall provide a very little explanation of the reason for recommending the specific sanctions to be imposed. Lack of documentation and explanation makes it difficult for NFA staff to warrant specific sanctions for lack of proper evidence and unreliable factors.
-
Question 8 of 10
8. Question
Aside from customer complaints, what other potential problems are addressed by the National Futures Association?
Correct
The disciplinary process of NFA includes addressing problems not only with customer complaints but also referrals from other self-regulatory and regulatory organizations. It is within the routine compliance activities of NFA to review promotional materials submitted by members. These include periodic audits and reviews of financial reports.
Incorrect
The disciplinary process of NFA includes addressing problems not only with customer complaints but also referrals from other self-regulatory and regulatory organizations. It is within the routine compliance activities of NFA to review promotional materials submitted by members. These include periodic audits and reviews of financial reports.
-
Question 9 of 10
9. Question
What action must be done when NFA’s Compliance Department identifies more serious and repetitive violations of NFA rules?
Correct
The matter must be brought to the attention of the Enforcement Coordinator who works within the Office of the General Counsel. The Enforcement Coordinator may decide if the matter is appropriate for prosecution. If such a decision is made, an Enforcement Attorney will coordinate additional investigation regarding the matter.
Incorrect
The matter must be brought to the attention of the Enforcement Coordinator who works within the Office of the General Counsel. The Enforcement Coordinator may decide if the matter is appropriate for prosecution. If such a decision is made, an Enforcement Attorney will coordinate additional investigation regarding the matter.
-
Question 10 of 10
10. Question
Which of the following are correct regarding hearings under the disciplinary process of the National Futures Association?
I. The respondent has a right to a hearing.
II. The respondent has no right to a hearing.
III. Hearings are conducted by a three-person panel of members of NFA’s Hearing Committee.
IV. Hearings are conducted by a five-person panel of members of NFA’s Hearing Committee.Correct
A hearing is conducted by a three-person panel of members of NFA’s Hearing Committee. Every respondent has a right to a hearing. A respondent has a right to appeal of a decision of a Hearing Panel to NFA’s Appeals Committee, which subcommittee is the NFA’s Executive Board. The Compliance Department may also petition for appeal. Complaints may be resolved through settlement, either before or after the respondent gives their formal answer.
Incorrect
A hearing is conducted by a three-person panel of members of NFA’s Hearing Committee. Every respondent has a right to a hearing. A respondent has a right to appeal of a decision of a Hearing Panel to NFA’s Appeals Committee, which subcommittee is the NFA’s Executive Board. The Compliance Department may also petition for appeal. Complaints may be resolved through settlement, either before or after the respondent gives their formal answer.