Series 24 Unit 4
FINRA "look back" period rule - correct answer ✔Two years for political
contributions, 6 MONTHS for NEWLY COVERED ASSOCIATES. Intended to
prevent members from circumventing pay-to-play rule by hiring people who
have already made political contributions
FINRA pay-to-play rule exceptions - correct answer ✔Associated person,
NOT THE FIRM, who makes a financial contribution to a government official
who the AP can vote for. Cannot exceed $350 or $150 if the AP could not vote
for
The document that appoints an individual to oversee a guardianship account
is a certificate of incumbency and is valid for how long? - correct answer ✔60
days
Customers wishing to follow representative to new member firm - correct
answer ✔Must be in customers best interest
Joint accounts with Customers - correct answer ✔Not permitted for firms but
representatives can if approved by principal and account proceeds are
proportionately shared
Repurchase agreements - correct answer ✔Never allowed unless in writing,
involve exempt securities like US government or municipal bonds, and specify
the time and price of the repurchase
Types of compensation not permitted in soft-dollar arrangements - correct
answer ✔Travel & Entertainment
Reimbursement for error orders
FINRA "look back" period rule - correct answer ✔Two years for political
contributions, 6 MONTHS for NEWLY COVERED ASSOCIATES. Intended to
prevent members from circumventing pay-to-play rule by hiring people who
have already made political contributions
FINRA pay-to-play rule exceptions - correct answer ✔Associated person,
NOT THE FIRM, who makes a financial contribution to a government official
who the AP can vote for. Cannot exceed $350 or $150 if the AP could not vote
for
The document that appoints an individual to oversee a guardianship account
is a certificate of incumbency and is valid for how long? - correct answer ✔60
days
Customers wishing to follow representative to new member firm - correct
answer ✔Must be in customers best interest
Joint accounts with Customers - correct answer ✔Not permitted for firms but
representatives can if approved by principal and account proceeds are
proportionately shared
Repurchase agreements - correct answer ✔Never allowed unless in writing,
involve exempt securities like US government or municipal bonds, and specify
the time and price of the repurchase
Types of compensation not permitted in soft-dollar arrangements - correct
answer ✔Travel & Entertainment
Reimbursement for error orders
