Series 24
Becoming a FINRA Member - correct answer ✔✔-File online a New Member Application (Form NMA)
w/FINRA
-Register with SEC as B/D and file Form BD
-Meet standards under rule 1014
Statutory Disqualification - correct answer ✔✔Member or individual who has faced disciplinary
sanctions by the SEC or another SRO in the last 10 years. SD cannot work in the securities industry
without an exception from the DMR.
Form MC-400 - correct answer ✔✔Form that must be filed with FINRA's Department of Registration and
Disclosure in order to offer a SD individual a clerical or ministerial job. If refused, SD individual can
request hearing.
Firm agrees to notify FINRA 30 days in advance of... - correct answer ✔✔-merger or acquisition with
another member
-acquisition or merger with a nonmember
-material change in the member's business
-change in the equity ownership such that one person or entity controls 25% or more of the firm's equity
Firm agrees to notify FINRA 10 days in advance if a member or associated person... - correct answer ✔✔-
have been found to have violated federal securities law
-are subject to a customer complaint alleging theft, forgery or misapprop. of customer assets or become
SD
-have been suspended/expelled by another SRO
-become defendant in any securities-related litigation or arbitration settled from more than $15,000
(ind.)/$20,000 (firm)
FINRA Rule 3130 - correct answer ✔✔Member firm must designate a principal to serve as CCO and get
annual certification of firm's creation, maintenance, review, and testing of supervisor procedures.
, FINRA fees and assessments - correct answer ✔✔-fees are paid on number of registered branch offices
and representatives and principals of firm
-assessments are made on gross income from securities transactions (info pulled from FOCUS report)
Series 6 License - correct answer ✔✔Can offer investment company products and variable contract by
prospectus (does not include closed-end fund sales in secondary market)
-mutual fund shares, variable annuities (w/proper insurance license), unit investment trusts, and closed-
end investment co. shares
Series 7 License - correct answer ✔✔General Securities Representative.
-Can offer all types of securities on offer at representative's B/D
(cannot sell commodity futures contract or physical/financial futures)
Series 11 - correct answer ✔✔Registered Sales Assistant
-Cannot make recommendations or solicit sales
-Can enter unsolicited orders and provide current quotations
-Must be paid hourly or salary, no commissions or per transaction compensation allowed (overall
performance bonus is okay)
Series 22 - correct answer ✔✔DPP Representative
-Can sell direct participation programs such as REITs
Series 55 - correct answer ✔✔OTC Equity Trader
-Can trade equities (as agent or principal) as well as OTC equity and convertible debt securities.
-Required for OTC market makers, agency, and OTC proprietary traders
-Must already have passed either Series 7 or Series 62 exam
Series 62 - correct answer ✔✔Corporate Securities Representative
Becoming a FINRA Member - correct answer ✔✔-File online a New Member Application (Form NMA)
w/FINRA
-Register with SEC as B/D and file Form BD
-Meet standards under rule 1014
Statutory Disqualification - correct answer ✔✔Member or individual who has faced disciplinary
sanctions by the SEC or another SRO in the last 10 years. SD cannot work in the securities industry
without an exception from the DMR.
Form MC-400 - correct answer ✔✔Form that must be filed with FINRA's Department of Registration and
Disclosure in order to offer a SD individual a clerical or ministerial job. If refused, SD individual can
request hearing.
Firm agrees to notify FINRA 30 days in advance of... - correct answer ✔✔-merger or acquisition with
another member
-acquisition or merger with a nonmember
-material change in the member's business
-change in the equity ownership such that one person or entity controls 25% or more of the firm's equity
Firm agrees to notify FINRA 10 days in advance if a member or associated person... - correct answer ✔✔-
have been found to have violated federal securities law
-are subject to a customer complaint alleging theft, forgery or misapprop. of customer assets or become
SD
-have been suspended/expelled by another SRO
-become defendant in any securities-related litigation or arbitration settled from more than $15,000
(ind.)/$20,000 (firm)
FINRA Rule 3130 - correct answer ✔✔Member firm must designate a principal to serve as CCO and get
annual certification of firm's creation, maintenance, review, and testing of supervisor procedures.
, FINRA fees and assessments - correct answer ✔✔-fees are paid on number of registered branch offices
and representatives and principals of firm
-assessments are made on gross income from securities transactions (info pulled from FOCUS report)
Series 6 License - correct answer ✔✔Can offer investment company products and variable contract by
prospectus (does not include closed-end fund sales in secondary market)
-mutual fund shares, variable annuities (w/proper insurance license), unit investment trusts, and closed-
end investment co. shares
Series 7 License - correct answer ✔✔General Securities Representative.
-Can offer all types of securities on offer at representative's B/D
(cannot sell commodity futures contract or physical/financial futures)
Series 11 - correct answer ✔✔Registered Sales Assistant
-Cannot make recommendations or solicit sales
-Can enter unsolicited orders and provide current quotations
-Must be paid hourly or salary, no commissions or per transaction compensation allowed (overall
performance bonus is okay)
Series 22 - correct answer ✔✔DPP Representative
-Can sell direct participation programs such as REITs
Series 55 - correct answer ✔✔OTC Equity Trader
-Can trade equities (as agent or principal) as well as OTC equity and convertible debt securities.
-Required for OTC market makers, agency, and OTC proprietary traders
-Must already have passed either Series 7 or Series 62 exam
Series 62 - correct answer ✔✔Corporate Securities Representative
