TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD
OWNER: EMILLYCHARLOTTE
COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED
FIRST PUBLISHED: SEPTEMBER 2024
FINRA Rules Exam Study Guide with
Complete Solutions
Enforcement Bodies - Answer✔️✔️-Securities and Exchange Commission, FINRA
Federal Reserve determines - Answer✔️✔️-which securities are marginable.
Enforcement is performed by FINRA. - Answer✔️✔️-MSRB writes rules for municipal
market participants
FINRA is the regulator for all of the securities markets - Answer✔️✔️-Primary Market
(new issues); the First Market (trades on exchanges); the Second Market (OTC trades
of non-exchange listed securities); the Third Market (OTC trades of exchange listed
issues) and the Fourth Market (direct trading between institutions on ECNs and ATSs)
FINRA does not regulate - Answer✔️✔️-CBOE options trading floor. There, the CBOE is
the regulator
"RR") may be compensated only by - Answer✔️✔️-brokerage firm for which the RR
works, based on trading commissions, salary, or asset based fees.
Customers may not pay compensation - Answer✔️✔️-directly to registered
representatives.
To take a second job - Answer✔️✔️-each registered person gives written notice to the
employing member firm and must follow instructions of the employing member firm.
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,TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD
OWNER: EMILLYCHARLOTTE
COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED
FIRST PUBLISHED: SEPTEMBER 2024
no requirement to notify, or get the approval of, FINRA
FINRA requires that associated persons give written notice to their employer and
receive employer approval to - Answer✔️✔️-serve as an officer, director, or partner of
another business organization
any outside business activities must be disclosed - Answer✔️✔️-individual's U-4 filing, so
the U-4 must be amended promptly if the employer approves and outside work is taken.
any outside business activities are shown on - Answer✔️✔️-registered representative's
BrokerCheck report.
FINRA limits gifts related to one's employment in the securities business, either given or
received, - Answer✔️✔️-$100 in value per person per year.
Business entertainment does not fall under the $100 gift limit. - Answer✔️✔️-is permitted
as long as it is not too excessive or too frequent and it must comply with the firm's
policies and procedures.
Business entertainment means - Answer✔️✔️-representative and the customer are
together at some type of event.
Registered representatives can only shares commissions and fees with - Answer✔️✔️-
other registered persons at the same broker-dealer
prohibited from sharing in commissions or paying fees to registered persons at other
brokerage firms and to any unregistered individual.
2/28
, TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD
OWNER: EMILLYCHARLOTTE
COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED
FIRST PUBLISHED: SEPTEMBER 2024
Continuing Education - Firm Element - Answer✔️✔️-each member firm must deliver a
Continuing Education program to each registered person that covers relevant
compliance issues, regulatory issues, and product features and issues
must document each person's participation and completion of the annual Firm Element
Continuing Education program
Continuing Education - Regulatory Element - Answer✔️✔️-Regulatory Element
Continuing Education program must be completed. This is administered by FINRA on
the PROCTOR system
Regulatory Element Continuing Education program must be completed. - Answer✔️✔️-
each registered person's 2nd anniversary of registration and every 3rd year thereafter,
Regulatory Element - Answer✔️✔️-training session that must be completed within 120
days of notification , Not completed, that person's license is suspended until completion
occurs.
Failure to Complete Regulatory Element - Answer✔️✔️-Not completed, that person's
license is suspended until completion occurs.
Parking Licenses - Answer✔️✔️-prohibited practice; person cannot arrange to have a
member firm hold his or her license during the period when he or she is not employed at
a member firm.
3/28
OWNER: EMILLYCHARLOTTE
COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED
FIRST PUBLISHED: SEPTEMBER 2024
FINRA Rules Exam Study Guide with
Complete Solutions
Enforcement Bodies - Answer✔️✔️-Securities and Exchange Commission, FINRA
Federal Reserve determines - Answer✔️✔️-which securities are marginable.
Enforcement is performed by FINRA. - Answer✔️✔️-MSRB writes rules for municipal
market participants
FINRA is the regulator for all of the securities markets - Answer✔️✔️-Primary Market
(new issues); the First Market (trades on exchanges); the Second Market (OTC trades
of non-exchange listed securities); the Third Market (OTC trades of exchange listed
issues) and the Fourth Market (direct trading between institutions on ECNs and ATSs)
FINRA does not regulate - Answer✔️✔️-CBOE options trading floor. There, the CBOE is
the regulator
"RR") may be compensated only by - Answer✔️✔️-brokerage firm for which the RR
works, based on trading commissions, salary, or asset based fees.
Customers may not pay compensation - Answer✔️✔️-directly to registered
representatives.
To take a second job - Answer✔️✔️-each registered person gives written notice to the
employing member firm and must follow instructions of the employing member firm.
1/28
,TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD
OWNER: EMILLYCHARLOTTE
COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED
FIRST PUBLISHED: SEPTEMBER 2024
no requirement to notify, or get the approval of, FINRA
FINRA requires that associated persons give written notice to their employer and
receive employer approval to - Answer✔️✔️-serve as an officer, director, or partner of
another business organization
any outside business activities must be disclosed - Answer✔️✔️-individual's U-4 filing, so
the U-4 must be amended promptly if the employer approves and outside work is taken.
any outside business activities are shown on - Answer✔️✔️-registered representative's
BrokerCheck report.
FINRA limits gifts related to one's employment in the securities business, either given or
received, - Answer✔️✔️-$100 in value per person per year.
Business entertainment does not fall under the $100 gift limit. - Answer✔️✔️-is permitted
as long as it is not too excessive or too frequent and it must comply with the firm's
policies and procedures.
Business entertainment means - Answer✔️✔️-representative and the customer are
together at some type of event.
Registered representatives can only shares commissions and fees with - Answer✔️✔️-
other registered persons at the same broker-dealer
prohibited from sharing in commissions or paying fees to registered persons at other
brokerage firms and to any unregistered individual.
2/28
, TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD
OWNER: EMILLYCHARLOTTE
COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED
FIRST PUBLISHED: SEPTEMBER 2024
Continuing Education - Firm Element - Answer✔️✔️-each member firm must deliver a
Continuing Education program to each registered person that covers relevant
compliance issues, regulatory issues, and product features and issues
must document each person's participation and completion of the annual Firm Element
Continuing Education program
Continuing Education - Regulatory Element - Answer✔️✔️-Regulatory Element
Continuing Education program must be completed. This is administered by FINRA on
the PROCTOR system
Regulatory Element Continuing Education program must be completed. - Answer✔️✔️-
each registered person's 2nd anniversary of registration and every 3rd year thereafter,
Regulatory Element - Answer✔️✔️-training session that must be completed within 120
days of notification , Not completed, that person's license is suspended until completion
occurs.
Failure to Complete Regulatory Element - Answer✔️✔️-Not completed, that person's
license is suspended until completion occurs.
Parking Licenses - Answer✔️✔️-prohibited practice; person cannot arrange to have a
member firm hold his or her license during the period when he or she is not employed at
a member firm.
3/28
