FINRA Series 54 - Pauline - Quiz 12.new
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Question 1 of 10
1. Question
Which of the following statements are true about professional advertisements and content standards?
I. Advertisements must be based on the principles of fair dealing and good faith, be fair and balanced, and provide a sound basis for evaluating the municipal security that would not cause misleading.
II. Advertisements must be catchy and full of wit.
III. Advertisements must be creative and with originality
IV. Advertisements must be clear and not misleading within the context that they made.Correct
MSRB G-40 includes the general provisions, addresses professional advertisements by municipal advisors, and requires principal approval, in writing, for advertisements by municipal advisors before using it. The advertisement must follow these standards: (1) Must be based on the principles of fair dealing and good faith, be fair and balanced and provide a sound basis for evaluating the municipal security that would not cause misleading; (2) Must not contain a false, exaggerated, unwarranted, promissory or misleading statement of claim; Limits the types of information placed in a legend or a footnote; (3) The statements must be clear and not misleading within the context that they made; (4) Must consider the audience to which the advertisement will be directed and consider the content to its target audience; (5) Must not include a projection of performance, imply that past performance will recur, or make any exaggerated or unwarranted claim/forecast; and (6) Must not refer, directly or indirectly, to any testimonial of any kind concerning the municipal advisor or concerning the advice, analysis report, or other services of municipal advisor.
Incorrect
MSRB G-40 includes the general provisions, addresses professional advertisements by municipal advisors, and requires principal approval, in writing, for advertisements by municipal advisors before using it. The advertisement must follow these standards: (1) Must be based on the principles of fair dealing and good faith, be fair and balanced and provide a sound basis for evaluating the municipal security that would not cause misleading; (2) Must not contain a false, exaggerated, unwarranted, promissory or misleading statement of claim; Limits the types of information placed in a legend or a footnote; (3) The statements must be clear and not misleading within the context that they made; (4) Must consider the audience to which the advertisement will be directed and consider the content to its target audience; (5) Must not include a projection of performance, imply that past performance will recur, or make any exaggerated or unwarranted claim/forecast; and (6) Must not refer, directly or indirectly, to any testimonial of any kind concerning the municipal advisor or concerning the advice, analysis report, or other services of municipal advisor.
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Question 2 of 10
2. Question
Which statements are true about the amendments to SEC Form MA-I?
I. The amendments made in Form MA-I must be filed electronically.
II. If the information contained in the Form MA-I becomes irrelevant or inaccurate, the registered municipal advisor shall promptly amend those.
III. The amendment made in Form MA-I can be passed over-the-counter at any SEC Satellite Offices.
IV. The amendments made can be filled by any associated persons with the municipal advisor.Correct
As per the SEC rule 15Ba 1-5 (2), A registered municipal advisor shall promptly amend the information contained in Form MA-I. This information may be regarding a natural person municipal advisors and other information that may be inaccurate or irrelevant to the form. The amendments made in the Form MA-I must be filed by the registered municipal advisor electronically.
Incorrect
As per the SEC rule 15Ba 1-5 (2), A registered municipal advisor shall promptly amend the information contained in Form MA-I. This information may be regarding a natural person municipal advisors and other information that may be inaccurate or irrelevant to the form. The amendments made in the Form MA-I must be filed by the registered municipal advisor electronically.
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Question 3 of 10
3. Question
Which of the following statements are true about Municipal Advisor Professional Fee Payment Guidelines?
I. Municipal advisors are required to pay a fee equal to $300 for each SEC Form MA-I.
II. Municipal advisors who registered with MSRB prior to September 30, 2014, must pay a one-time transitional municipal advisor professional fee dependent on the SEC’s acceptance of their registration.
III. Each SEC Form MA-I is free of charge.
IV. The municipal advisory professional fee will be billed and invoiced biannually.Correct
According to MSRB Rule A-11, A municipal advisor must pay $300 for each SEC Form MA-I filed with the SEC. Municipal advisors registered with MSRB prior to September 30, 2014, must pay a one-time transitional municipal advisor fee dependent on the SEC’s acceptance of their registration, but after 2014, the municipal advisor professional fee will be billed and invoiced annually.
Incorrect
According to MSRB Rule A-11, A municipal advisor must pay $300 for each SEC Form MA-I filed with the SEC. Municipal advisors registered with MSRB prior to September 30, 2014, must pay a one-time transitional municipal advisor fee dependent on the SEC’s acceptance of their registration, but after 2014, the municipal advisor professional fee will be billed and invoiced annually.
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Question 4 of 10
4. Question
What do you call the examination that each broker-dealer and municipal securities dealer who is also a member of a registered securities association needs to take once each four (4) calendar years?
Correct
In accordance with MSRB Rule G-16, each broker-dealer and municipal securities dealer who is also a member of a registered securities association needs to take once each four (4) calendar years. Also for each municipal securities dealer that is a bank or subsidiary or department or a division of a bank shall be examined for at least once each two (2) calendar years. This examination is made in order to determine that a broker, dealer, or a municipal securities dealer and its associated persons are in compliance with the rules of the board and the provisions and regulations of the commission.
Incorrect
In accordance with MSRB Rule G-16, each broker-dealer and municipal securities dealer who is also a member of a registered securities association needs to take once each four (4) calendar years. Also for each municipal securities dealer that is a bank or subsidiary or department or a division of a bank shall be examined for at least once each two (2) calendar years. This examination is made in order to determine that a broker, dealer, or a municipal securities dealer and its associated persons are in compliance with the rules of the board and the provisions and regulations of the commission.
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Question 5 of 10
5. Question
What do you call the persons who are registered with a municipal securities dealer and have direct contact with customers in the conduct of the municipal securities dealer?
Correct
According to MSRB Rule D-11, An associated person/s are registered with a broker, dealer, or municipal securities dealer who has direct contact with customers. They conduct broker-dealer or municipal securities dealer’s securities sales, trading, and investment banking activities, and to the immediate supervisors of such persons.
Incorrect
According to MSRB Rule D-11, An associated person/s are registered with a broker, dealer, or municipal securities dealer who has direct contact with customers. They conduct broker-dealer or municipal securities dealer’s securities sales, trading, and investment banking activities, and to the immediate supervisors of such persons.
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Question 6 of 10
6. Question
What do you call the activities engaged in providing advice to municipal entities, issuance of financial products, and solicitations?
Correct
In MSRB Rule D-13, Municipal Advisory Activities are activities that provide advice to municipal entities or obligated persons on municipal financial products. These activities also involve the issuance of municipal securities and solicitation of municipal entities on behalf of others such as brokers, dealers, municipal securities dealers, municipal advisors, or investment advisers.
Incorrect
In MSRB Rule D-13, Municipal Advisory Activities are activities that provide advice to municipal entities or obligated persons on municipal financial products. These activities also involve the issuance of municipal securities and solicitation of municipal entities on behalf of others such as brokers, dealers, municipal securities dealers, municipal advisors, or investment advisers.
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Question 7 of 10
7. Question
What are standards that every natural person must comply with in order to become a broker, dealer, or municipal securities dealer?
Correct
In accordance with MSRB G-2, A natural person who wants to become a broker, dealer, or municipal securities dealer must follow the Standards of Professional Qualification. Once they comply and are qualified to become a broker, dealer, or a municipal securities dealer, they can engage in any transaction in, or induce or attempt to induce the purchase or sale of any municipal security, and engage in municipal advisory activities.
Incorrect
In accordance with MSRB G-2, A natural person who wants to become a broker, dealer, or municipal securities dealer must follow the Standards of Professional Qualification. Once they comply and are qualified to become a broker, dealer, or a municipal securities dealer, they can engage in any transaction in, or induce or attempt to induce the purchase or sale of any municipal security, and engage in municipal advisory activities.
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Question 8 of 10
8. Question
What do you call a person who is associated with a municipal advisor and engaged in municipal advisory activities on the municipal advisor’s behalf?
Correct
As per MSRB Rule G-3, a municipal advisory representative is a natural person associated with a municipal advisor. A municipal advisor representative engages in municipal advisory activities on the municipal advisor’s behalf, other than a person performing clerical, administrative support, or any similar functions.
Incorrect
As per MSRB Rule G-3, a municipal advisory representative is a natural person associated with a municipal advisor. A municipal advisor representative engages in municipal advisory activities on the municipal advisor’s behalf, other than a person performing clerical, administrative support, or any similar functions.
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Question 9 of 10
9. Question
What do you call a person who is associated with a broker and is directly engaged in the management, direction, or supervision of one or more of the municipal securities activities?
Correct
According to MSRB Rule G-3, A Municipal Securities Principal is a natural person who is associated with a broker, dealer, or municipal securities dealer. A municipal securities principal is directly engaged in the management, direction, or supervision of one or more municipal securities activities.
Incorrect
According to MSRB Rule G-3, A Municipal Securities Principal is a natural person who is associated with a broker, dealer, or municipal securities dealer. A municipal securities principal is directly engaged in the management, direction, or supervision of one or more municipal securities activities.
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Question 10 of 10
10. Question
What do you call a person who is associated with a broker, dealer, or municipal securities dealer that is directly engaged in functions of a municipal securities principal?
Correct
In accordance with MSRB Rule G-3, a Municipal Fund Securities Limited Principal is any natural person associated with a broker, dealer, or municipal securities dealer. They are directly engaged in the functions of a municipal securities principal, but solely as such activities relate to transactions in municipal fund securities.
Incorrect
In accordance with MSRB Rule G-3, a Municipal Fund Securities Limited Principal is any natural person associated with a broker, dealer, or municipal securities dealer. They are directly engaged in the functions of a municipal securities principal, but solely as such activities relate to transactions in municipal fund securities.