SIE Exam (Lesson 13: FINRA Registration) Study Guide with Complete Solutions

SIE Exam (Lesson 13: FINRA Registration) Study Guide with Complete Solutions SEC ️️ Correct- Government agency whose primary mission is to matin the integrity of the US markets and protect investors (more big picture) SEC Empowers __________ with certain enforcement responsibilities within the securities industry ️️ Correct Self-regulatory organizations - FINRA (SRO) --> regulates broker-dealers and registered reps - MSRB (SRO) --> regulates municipal securities market, but not those from municipal issuers - SEC must approve of FINRA & MSRB RR Registration Process ️️ Correct 1. Take SIE-- passing doesn't qualify individual to conduct securities business (to be RR) - SIE credential is valid for 4 years 2. Form U4: To associate with firm, you need to complete and submit U4 form to FINRA TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD OWNER: EMILLYCHARLOTTE COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED FIRST PUBLISHED: SEPTEMBER 2024 2/14 - Details personal disclosure (FERBCP) Fingerprints Employment history Residential history Bankruptcies Criminal background Pre-dispute arbitration agreement 3. Series exams (+SIE if needed) (IGI) Series 6 Investment co. 7 variable rep Series 7: General securites rep Series 79: Investment banking rep 4. Form U5: Upon terminating/ leaving firm, a form U5 is completed Arbitratoin - A means of settling financial disputes outside of the court system - All RRs must sign a pre-dispute arbitration agreement as part of their Form U4 Pre-dispute arbitration agreement requires future dispute between firm and rep to be settled outside of the court, rather than in court (could be a financial disagreement) True or false: Arbitration a. Disputes relating to harassment and discrimination can be heard in court TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD OWNER: EMILLYCHARLOTTE COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED FIRST PUBLISHED: SEPTEMBER 2024 3/14️️ Correct i. True: unless both parties agree to arbitration b. Disputes involving the public (ex: customers) are required to be arbitrated ️️ Correct i. False: only if the customer agrees to arbitration c. Cases with the public must include arbitrators from outside the industry ️️ Correct i. True: known as “public arbitrators” -> want people who understand the public d. Industry-only cases (ex: firm-firm) must include arbitrators from outside industry ️️ Correct False: Industry arbitrators hear industry disputes. They want people to understand the jargon of industry If a rep is associated with Broker-Dealer A and leaves and begins to work for Broker-Dealer B what regulatory filings must be completed? ️️ Correct Form U5 then Form U4 A firm must typically file a Form U5 wi