unit 15 Qbank quizzes

B)

educational history.

• Form U4 requires residential history for the past 5 years only. Employment history for the past 10 years, legal names and any aliases used, and the date of birth are all examples of required information on Form U4. Education and marital status are not required.

Form U4 requires all of the following information except

A)

employment history for the past 10 years.

B)

educational history.

C)

legal name and any aliases used.

D)

residential history for the past 5 years.

C)

both a Form U5 from the previous employer and a Form U4 from the new one.

• Termination, for whatever reason, requires that the old firm file a Form U5. Registration, whether for the initial or any subsequent one, requires filing of a Form U4.

An individual has been a registered representative with a national firm for the past three years. Another member firm makes an attractive offer in an attempt to lure this individual to join them. In order to do so, the paperwork necessary would be

A)

completing a new Form U4 with the new employer.

B)

a transfer of registration on Financial Industry Regulatory Authority (FINRA) form TRF.

C)

both a Form U5 from the previous employer and a Form U4 from the new one.

D)

a Form U5 from the previous employer.

A)

Form U4

• To register an associated person of a member firm with FINRA, the member will fill out and submit a Form U4. Registration can only be made effective after the person passes the appropriate qualification exam(s).

To register an associated person with Financial Industry Regulatory Authority (FINRA), a member firm will fill out and submit which of the following forms?

A)

Form U4

B)

Schedule C

C)

Form U5

D)

Form 1040

C)

it is prepared by Financial Industry Regulatory Authority (FINRA) for the member firm to administer.

• The firm element of a broker-dealer firm's continuing education (CE) requirement is prepared by the member firm. It comprises training for those personnel who have direct contact with the public, and it must be completed by all registered persons. Among other things, it must take into account the scope of the firm's business.

All of the following regarding the firm element of a broker-dealer's continuing education (CE) requirement are true except

A)

it comprises training for those who have direct contact with the public.

B)

it must take into account the scope of the member firm's business.

C)

it is prepared by Financial Industry Regulatory Authority (FINRA) for the member firm to administer.

D)

it is applicable to both registered representatives and registered principals.

A)

misstatements are willfully made in an application for membership.

• Misstatements willfully made in an application for membership or registration as an associated person will automatically disqualify an applicant from membership. A felony conviction (not charge), either domestic or foreign, or a misdemeanor conviction involving securities or money within the past 10 years will also automatically disqualify an applicant from membership. Note that FINRA will examine the circumstances around a disqualifying event before a final decision is made, but they take willful misstatements on the U4 very seriously.

Automatic disqualification for registration from Financial Industry Regulatory Authority (FINRA) may occur if

A)

misstatements are willfully made in an application for membership.

B)

an associated person has been charged with a felony in the past 5 years.

C)

an associated person has been charged with a felony in the past 10 years.

D)

a DUI traffic violation is made by an associated person.

C)

FINRA will deactivate Adrian's registration until the requirements of the program are met.

• Failure to complete the regulatory element within the prescribed period will lead to FINRA deactivating that person's registration until the requirements of the program are met. The person may still have a role in the member's business, but it would be limited to those activities permitted to those not requiring registration.

Adrian, a registered representative with Appalachia Advisors, LLC, (a FINRA member firm) has received a notification that he must complete his regulatory element CE within 120 days. If Adrian fails to complete the CE within the specified period, what will happen to Adrian's registration?

A)

Adrian will not be allowed on the firm's premises until the requirements of the program are met.

B)

FINRA will normally grant Adrian a 30-day extension of time.

C)

FINRA will deactivate Adrian's registration until the requirements of the program are met.

D)

The member firm must suspend Adrian until the requirements of the program are met.

C)

2 years

If a registered representative terminates his association with a member firm, how long can he be away (not associated with a member firm) before he must retest to again be registered?

A)

5 years

B)

18 months

C)

2 years

D)

36 months

B)

deactivated by Financial Industry Regulatory Authority (FINRA) until the requirements of the program are met.

• If a person fails to complete the regulatory element within the prescribed time period, FINRA will deactivate that person's registration until the requirements of the program have been met.

Registered representatives who have not completed their regulatory element training in the prescribed time frame will have their registrations

A)

permanently revoked and subject to criminal charges.

B)

deactivated by Financial Industry Regulatory Authority (FINRA) until the requirements of the program are met.

C)

suspended and subject to a fine of not more than $500.

D)

suspended for a period of 60 days and reinstated when the requirements of the program are met.

B)

The member firm

• Should a person registered with a member firm resign or be terminated, the member must file Form U5 with the Central Registration Depository (CRD) within 30 days of termination date.

Who is responsible for filing a U5 with the Central Registration Depository (CRD) following termination?

A)

The depository trust company

B)

The member firm

C)

FINRA

D)

The registered person

A)

Eight years ago, Nikki was charged with a misdemeanor involving securities fraud.

• A charge does not mean a conviction. A conviction of any felony is disqualifying, as is being barred by a state or federal authority. FINRA does not take well to lying on your U4.

Which of these would not make Nikki subject to a statutory disqualification?

A)

Eight years ago, Nikki was charged with a misdemeanor involving securities fraud.

B)

Nikki made a false statement on the U4 Form.

C)

Eight years ago, Nikki was convicted of felony assault in a fight.

D)

Nikki was barred from the industry by the securities administrator of Wyoming.

D)

the registration being deactivated until the requirements are met.

• Failure to complete the regulatory element within the allowable time frame will lead to FINRA's deactivating that person's registration until the CE regulatory element is met.

Failure to complete the regulatory element continuing education (CE) requirement within the allotted time period will result in

A)

suspension of the individual until all CE requirements are met.

B)

an automatic bar from the industry for three years.

C)

an automatic extension request, which Financial Industry Regulatory Authority (FINRA) will normally grant.

D)

the registration being deactivated until the requirements are met.

C)

being charged with a securities-related misdemeanor.

• Only misdemeanor convictions (not a charge) involving securities, money, or investments would lead to automatic disqualification.

Automatic disqualification for an individual to be registered in the securities industry would not include

A)

having been found to enter a misstatement in the application for membership.

B)

being under an SEC order to be barred from associating with a broker-dealer.

C)

being charged with a securities-related misdemeanor.

D)

having been found as the cause of another associated person’s suspension.

A)

the Form U5.

• Financial Industry Regulatory Authority (FINRA) requires that registered representatives complete both the regulatory and the firm elements of a continuing education (CE) program. In addition to satisfying FINRA requirements for registration, each state has its own requirements that must be satisfied before a representative can act in that state. A representative is not required to file a Form U5. That form is filed by the member firm upon the termination of a registered representative for any reason. A copy will be provided to the departed representative.

Registered representatives must complete or satisfy each of the following except

A)

the Form U5.

B)

state registration requirements.

C)

the regulatory element.

D)

the firm element.

A)

BrokerCheck

• FINRA makes available some key information about firms and representatives through its BrokerCheck service. This is available to anyone by calling the BrokerCheck hotline or online.

Members and non-members alike can look into a broker's service and qualifications record by accessing which of the following services?

A)

BrokerCheck

B)

Form U4

C)

The Central Registration Depository

D)

Municipal Securities Rule Board (MSRB)