Knopman Marks

Knopman Marks Question and Answer 2023. Trust Indenture Correct Answer: Covenants, Cross Default Insider Trading / Securities Fraud Enforcement 1988 Correct Answer: Broker-dealers, 2 prong defense, rules in place, willfully ignored, unsolicited exception Regulation FD Correct Answer: On purpose: simultaneous, accident: 24 hours Fraud and Market Manipulation (Market) Correct Answer: Falsely claim market exists Statutory Disqualification Grounds Correct Answer: Felony of any kind, security-related crime of any kind Not grounds for statutory disqualification Correct Answer: Arrest, compliance would be notified but legal case is required before any subsequent action Result of statutory disqualification Correct Answer: person cannot be employed by a member firm unless the firm applies/receives waiver from FINRA Litigation threshold for disclosure on U-4 (rep) Correct Answer: $15,000 Litigation threshold for disclosure on U-4 (firm) Correct Answer: $25,000 CE inactive, cause and consequence Correct Answer: Cause: Not taking your test on time. Consequence: Can work as a clerk but not receive commissions or talk to clients. If CE inactive for 2 years or longer -> must retake examination Which offices are inspected once every 3 years Correct Answer: non-supervisory branches Annual Compliance review Correct Answer: For both registered reps and principals, meeting can be held in branch office Impermissible Registration / Parking registrations (note quite sure what this means) Correct Answer: Issuers are not permitted to "park" a registration at a broker-dealer in order to be able to solicit investors itself and avoid utilizing an underwriter. Also, firms are prohibited from maintaining the registration of any person unless it is an active registration or for a bona-fide business purpose Any transactions involving a transfer of funds from a country that the U.S. does not do business with, or has embargoes or sanctions in place against must be (blank) Correct Answer: blocked and reported to OFAC within 10 days AML regs at a firm Correct Answer: Firm must choose one rep who administers and implements firm's AML policies and compliance program. Program is not required to be approved by SEC. Front-running Correct Answer: No orders to buy or sell can be made by a member than has info about an imminent block trade in the security or a related security What can FINRA do to you / What can't they do? Correct Answer: Can: fine, censure, bar, suspended / Can't: imprison Payment due date after arbitration Correct Answer: 30 days from decision