Series 24 Chapter 1
Form NMA - correct answer ✔✔New Member Application filed thru Firm Gateway
180 Day Application Review Period
Broker - correct answer ✔✔Any person engaged in the business of effecting transactions in securities for
the account of others
Dealers - correct answer ✔✔Any person acting on behalf of their own proprietary trading account
Investment Adviser - correct answer ✔✔Person who, for compensation, advised others regarding
securities
Do not register with FINRA
Form BD - correct answer ✔✔Uniform App for BDs to register with SEC, SROs, states thru CRD
Must update form promptly (no later than 30 days) when inaccurate/imcomplete or any changes
Form CMA - correct answer ✔✔Required to be filed if member firm has change in ownership, control or
business operations (including additional lines of business)
Required by NASD Rule 1017 - filed electronically
NASD Rule 1014 - correct answer ✔✔Standards for Admission for Membership (12)
All applicants, except sole proprietorship, must have at least two officers qualified to become registered
as principals.
General Securities - Series 24
Limited to Invst Co Products - Series 26
New Member Application Process - correct answer ✔✔File Application with Department of Member
Regulation (DMR) at district office where applicant has main office;;
, Premembership Interview (PMI) takes place after initial review;
DMR issues application decision within 30 days of PMI
FINRA required to conduct an inspection of a newly registered firm within 6 months of registration
Form BR - correct answer ✔✔Uniform Branch Office Registration Form
Used to Register Branch Office
FINRA must be notified within 30 days, via Form BR, of opening a new branch
Form BRW - correct answer ✔✔Used when entire firm ceases business or withdraws registration from
SEC, FINRA and states;
Notice of withdrawal generally effective on the 60th day from filing unless SEC imposes terms and
conditions
Office of Supervisory Jurisdiction (OSJ) - correct answer ✔✔The BD office responsible for supervising the
activities of the register reps and associated persons in that office and other offices in the region.
Each OSJ required to have at least one resident principal
Statutory Disqualifications (SD) - correct answer ✔✔Disciplinary sanctions within previous 10 years can
be cause for statutory disqualification for an indefinite period
Statutory Disqualifications - Firm - correct answer ✔✔* Expelled or suspended by another SRO or
foreign equivalent;
* SEC denied, suspended, revoked registration;
* willfully filed false/misleading app
Statutory Disqualification - Individual - correct answer ✔✔* Willful misstatement/factual ommission on
U4
* Felony conviction or misdemeanor involving securities last 10 years;
* Court ordered prohibition to work in securities/financial sector;
* Suspended or expelled from Membership;
* Under SEC order revoking registration or barring association with BD
Form NMA - correct answer ✔✔New Member Application filed thru Firm Gateway
180 Day Application Review Period
Broker - correct answer ✔✔Any person engaged in the business of effecting transactions in securities for
the account of others
Dealers - correct answer ✔✔Any person acting on behalf of their own proprietary trading account
Investment Adviser - correct answer ✔✔Person who, for compensation, advised others regarding
securities
Do not register with FINRA
Form BD - correct answer ✔✔Uniform App for BDs to register with SEC, SROs, states thru CRD
Must update form promptly (no later than 30 days) when inaccurate/imcomplete or any changes
Form CMA - correct answer ✔✔Required to be filed if member firm has change in ownership, control or
business operations (including additional lines of business)
Required by NASD Rule 1017 - filed electronically
NASD Rule 1014 - correct answer ✔✔Standards for Admission for Membership (12)
All applicants, except sole proprietorship, must have at least two officers qualified to become registered
as principals.
General Securities - Series 24
Limited to Invst Co Products - Series 26
New Member Application Process - correct answer ✔✔File Application with Department of Member
Regulation (DMR) at district office where applicant has main office;;
, Premembership Interview (PMI) takes place after initial review;
DMR issues application decision within 30 days of PMI
FINRA required to conduct an inspection of a newly registered firm within 6 months of registration
Form BR - correct answer ✔✔Uniform Branch Office Registration Form
Used to Register Branch Office
FINRA must be notified within 30 days, via Form BR, of opening a new branch
Form BRW - correct answer ✔✔Used when entire firm ceases business or withdraws registration from
SEC, FINRA and states;
Notice of withdrawal generally effective on the 60th day from filing unless SEC imposes terms and
conditions
Office of Supervisory Jurisdiction (OSJ) - correct answer ✔✔The BD office responsible for supervising the
activities of the register reps and associated persons in that office and other offices in the region.
Each OSJ required to have at least one resident principal
Statutory Disqualifications (SD) - correct answer ✔✔Disciplinary sanctions within previous 10 years can
be cause for statutory disqualification for an indefinite period
Statutory Disqualifications - Firm - correct answer ✔✔* Expelled or suspended by another SRO or
foreign equivalent;
* SEC denied, suspended, revoked registration;
* willfully filed false/misleading app
Statutory Disqualification - Individual - correct answer ✔✔* Willful misstatement/factual ommission on
U4
* Felony conviction or misdemeanor involving securities last 10 years;
* Court ordered prohibition to work in securities/financial sector;
* Suspended or expelled from Membership;
* Under SEC order revoking registration or barring association with BD
