FINRA EXAM WITH Q&A TESTED AND APPROVED | 2026/2027
LATEST UPDATE | GRADED A+
A registered representative with ABC Securities, a FINRA member broker/dealer, terminates his
registration and affiliates with XYZ Securities, another FINRA member broker/dealer. Which of the
following statements is CORRECT? - ANSWER Continuing commissions on clients remaining with ABC
can be paid to the registered representative if it is in the representative's contract.
As long as the new affiliation takes place within two years of the termination, there would not be a
requirement to re-qualify by examination.
Continuing commissions may be paid on business that "continues" to accrue at the initial B/D as long
as it is in the employee's contract. There is a two-year limit on re-registering without need to re-take
the exam. It would be a prohibited practice to remove files from the office and there is nothing to
stop the representative's clients from changing their B/D of record to the new firm
FINRA was established to - ANSWER encourage just and equitable principles of trade.
adopt and enforce its Conduct Rules among brokers and dealers.
Which of the following statements about FINRA are TRUE? - ANSWER It has authority to regulate the
OTC market in nonexempt securities.
All branch offices of a member broker/dealer must be registered with FINRA.
Firms transacting business in the over-the-counter market and/or members of the New York Stock
Exchange must register with the SEC and are eligible for membership in FINRA. If a broker/dealer is a
member, each branch office of the broker/dealer must be registered with FINRA. Not all
broker/dealers are required to be FINRA members, and they may also hold membership in other
exchanges.
Which of the following changes to a U-4 form must be communicated to the registered
representative's broker/dealer and to FINRA? - ANSWER Bankruptcy
The broker/dealer and FINRA must be notified if a registered representative files for bankruptcy; the
other occurrences listed do not require FINRA notification
If a FINRA member firm suspends a registered representative, the firm must report the suspension
to: - ANSWER FINRA.
The firm must report the suspension to its designated examining authority (DEA), in this case, the
Financial Industry Regulatory Authority (FINRA).
, A change to which of the following items requires amending the Form U-4? - ANSWER A home
address change requires an amendment to Form U-4. A change to the member firm's address
requires the firm to amend its Form BD, but not the representative's Form U-4. Marital status and
vacation home address are not items of information on Form U-4.
FINRA fees paid by a member firm are based on which of the following - ANSWER FINRA fees are
determined by the number of registered representatives, principals, and branch offices registered
with FINRA.
Regarding offices of FINRA member firms, which of the following statements is CORRECT - ANSWER
All member firms must have at least one OSJ, managed by at least one resident principal. All branch
offices must be registered with FINRA and may be managed by a principal or qualified registered rep.
Which of the following are among the purposes and objectives of FINRA - ANSWER To promote self-
discipline among members
To investigate and adjust grievances between members.
FINRA is the self-regulatory organization (SRO) for the over-the-counter markets and for NYSE
members. It enforces the Conduct Rules, provides mediation and arbitration services, and promotes
self-discipline among members, all with the end in view of protecting the investing public
To which of the following persons may a broker/dealer pay commissions under a continuing
commission contract? - ANSWER A FINRA member firm may continue to pay commissions to either a
retired employee or a former employee's widowed spouse if a prior written contract exists.
Commissions may be paid only on business generated while employed.
When a member firm terminates a registered representative, the terminating firm must - ANSWER
Whenever a registered representative leaves a member firm, a U-5 form must be submitted to
FINRA.
The Conduct Rules apply to a transaction - ANSWER The Conduct Rules apply directly to all
transactions between FINRA member firms and members of the public.
All of the following statements regarding branch offices are true EXCEPT - ANSWER Branch offices
need not have a resident principal; they may use a qualified registered representative to serve as
branch manager.
True statements regarding branch offices. - ANSWER Activities will be reviewed by an office of
supervisory jurisdiction.
LATEST UPDATE | GRADED A+
A registered representative with ABC Securities, a FINRA member broker/dealer, terminates his
registration and affiliates with XYZ Securities, another FINRA member broker/dealer. Which of the
following statements is CORRECT? - ANSWER Continuing commissions on clients remaining with ABC
can be paid to the registered representative if it is in the representative's contract.
As long as the new affiliation takes place within two years of the termination, there would not be a
requirement to re-qualify by examination.
Continuing commissions may be paid on business that "continues" to accrue at the initial B/D as long
as it is in the employee's contract. There is a two-year limit on re-registering without need to re-take
the exam. It would be a prohibited practice to remove files from the office and there is nothing to
stop the representative's clients from changing their B/D of record to the new firm
FINRA was established to - ANSWER encourage just and equitable principles of trade.
adopt and enforce its Conduct Rules among brokers and dealers.
Which of the following statements about FINRA are TRUE? - ANSWER It has authority to regulate the
OTC market in nonexempt securities.
All branch offices of a member broker/dealer must be registered with FINRA.
Firms transacting business in the over-the-counter market and/or members of the New York Stock
Exchange must register with the SEC and are eligible for membership in FINRA. If a broker/dealer is a
member, each branch office of the broker/dealer must be registered with FINRA. Not all
broker/dealers are required to be FINRA members, and they may also hold membership in other
exchanges.
Which of the following changes to a U-4 form must be communicated to the registered
representative's broker/dealer and to FINRA? - ANSWER Bankruptcy
The broker/dealer and FINRA must be notified if a registered representative files for bankruptcy; the
other occurrences listed do not require FINRA notification
If a FINRA member firm suspends a registered representative, the firm must report the suspension
to: - ANSWER FINRA.
The firm must report the suspension to its designated examining authority (DEA), in this case, the
Financial Industry Regulatory Authority (FINRA).
, A change to which of the following items requires amending the Form U-4? - ANSWER A home
address change requires an amendment to Form U-4. A change to the member firm's address
requires the firm to amend its Form BD, but not the representative's Form U-4. Marital status and
vacation home address are not items of information on Form U-4.
FINRA fees paid by a member firm are based on which of the following - ANSWER FINRA fees are
determined by the number of registered representatives, principals, and branch offices registered
with FINRA.
Regarding offices of FINRA member firms, which of the following statements is CORRECT - ANSWER
All member firms must have at least one OSJ, managed by at least one resident principal. All branch
offices must be registered with FINRA and may be managed by a principal or qualified registered rep.
Which of the following are among the purposes and objectives of FINRA - ANSWER To promote self-
discipline among members
To investigate and adjust grievances between members.
FINRA is the self-regulatory organization (SRO) for the over-the-counter markets and for NYSE
members. It enforces the Conduct Rules, provides mediation and arbitration services, and promotes
self-discipline among members, all with the end in view of protecting the investing public
To which of the following persons may a broker/dealer pay commissions under a continuing
commission contract? - ANSWER A FINRA member firm may continue to pay commissions to either a
retired employee or a former employee's widowed spouse if a prior written contract exists.
Commissions may be paid only on business generated while employed.
When a member firm terminates a registered representative, the terminating firm must - ANSWER
Whenever a registered representative leaves a member firm, a U-5 form must be submitted to
FINRA.
The Conduct Rules apply to a transaction - ANSWER The Conduct Rules apply directly to all
transactions between FINRA member firms and members of the public.
All of the following statements regarding branch offices are true EXCEPT - ANSWER Branch offices
need not have a resident principal; they may use a qualified registered representative to serve as
branch manager.
True statements regarding branch offices. - ANSWER Activities will be reviewed by an office of
supervisory jurisdiction.
