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
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
