Series 24 - chapt 4 -self regulatory
organizations - supervision of member
firms
A broker/dealer has been suspended by FINRA for rule violations. While
suspended such a member must - correct answer ✔FINRA Rules state that
during a period of suspension the suspended member must be treated as a
non-member firm by all other member firms.
Are mutual funds subject to finra mark up policy? - correct answer ✔NO,
they are sold with a prospectus and they are not subject to a mark up
- Third market trade would be subject to a mark up
Sales of mutual fund shares would not be included because they are sales in
the primary market that are sold at a public offering price (net asset value) and
require the delivery of a prospectus. The other transactions are secondary
market transactions that would be subject to the rule because they involve an
OTC sale of unlisted securities or the sale of listed securities off the floor of an
exchange (e.g. the third market).
If, after an internal investigation, a broker-dealer determines that a securities
trade violated the insider trading rules, it must file a written report of the
investigation: - correct answer ✔The report must be filed with FINRA within 5
business days, (Memory hook: FINRA has 5 letters in it)
A clearing member firm must provide annual notice to its introducing firms with
respect to exception reports. The notice must be provided to which of the
following? - correct answer ✔II.The introducing member firm's CEO
IV.The introducing firm's designated examining authority
, Exception report due dates - correct answer ✔due july 31 regardless of
clearing broker or branch office
A clearing member must notify its introducing members regarding "exception"
reports no later than - correct answer ✔july 31 , annually
Annually, no later than July 31st, a clearing member must notify, in writing to
its introducing member's CEO or COO, notice regarding "exception" reports.
Exception reports are created by firms as a key aspect in maintaining their
supervisory procedures and complaints.
FINRA requires carrying broker/dealers to notify all customers that the FINRA
maintains Public Disclosure Information how often? - correct answer
✔Annual -
At least annually carrying member firms must provide all customers with
information about FINRA's Public Disclosure Program which provides
customers with the FINRA BrokerCheck Disclosure hotline, FINRA Website,
and availability of the Investor Brochure.
CTR - correct answer ✔Must be reported in 15 days of the reportable
incident
report of currency , wire transfers over 10k and multiple currency transactions
totaling over 10k
- wire requests over 3k must have information collected and retained
-support documentation is not generally included in these report
SAR - suspicious activity report - correct answer ✔any transaction conducted
through a BD involving funds or assets of 5k or more wher ethe BD detects
any known or suspected Federal Criminal violation
0- if a member firm becomes aware of a supicious trnsaction the firm must file
a SAR within 30 days
organizations - supervision of member
firms
A broker/dealer has been suspended by FINRA for rule violations. While
suspended such a member must - correct answer ✔FINRA Rules state that
during a period of suspension the suspended member must be treated as a
non-member firm by all other member firms.
Are mutual funds subject to finra mark up policy? - correct answer ✔NO,
they are sold with a prospectus and they are not subject to a mark up
- Third market trade would be subject to a mark up
Sales of mutual fund shares would not be included because they are sales in
the primary market that are sold at a public offering price (net asset value) and
require the delivery of a prospectus. The other transactions are secondary
market transactions that would be subject to the rule because they involve an
OTC sale of unlisted securities or the sale of listed securities off the floor of an
exchange (e.g. the third market).
If, after an internal investigation, a broker-dealer determines that a securities
trade violated the insider trading rules, it must file a written report of the
investigation: - correct answer ✔The report must be filed with FINRA within 5
business days, (Memory hook: FINRA has 5 letters in it)
A clearing member firm must provide annual notice to its introducing firms with
respect to exception reports. The notice must be provided to which of the
following? - correct answer ✔II.The introducing member firm's CEO
IV.The introducing firm's designated examining authority
, Exception report due dates - correct answer ✔due july 31 regardless of
clearing broker or branch office
A clearing member must notify its introducing members regarding "exception"
reports no later than - correct answer ✔july 31 , annually
Annually, no later than July 31st, a clearing member must notify, in writing to
its introducing member's CEO or COO, notice regarding "exception" reports.
Exception reports are created by firms as a key aspect in maintaining their
supervisory procedures and complaints.
FINRA requires carrying broker/dealers to notify all customers that the FINRA
maintains Public Disclosure Information how often? - correct answer
✔Annual -
At least annually carrying member firms must provide all customers with
information about FINRA's Public Disclosure Program which provides
customers with the FINRA BrokerCheck Disclosure hotline, FINRA Website,
and availability of the Investor Brochure.
CTR - correct answer ✔Must be reported in 15 days of the reportable
incident
report of currency , wire transfers over 10k and multiple currency transactions
totaling over 10k
- wire requests over 3k must have information collected and retained
-support documentation is not generally included in these report
SAR - suspicious activity report - correct answer ✔any transaction conducted
through a BD involving funds or assets of 5k or more wher ethe BD detects
any known or suspected Federal Criminal violation
0- if a member firm becomes aware of a supicious trnsaction the firm must file
a SAR within 30 days
