Financial Industry Regulatory Authority (FINRA) Exam Questions and Answers

Financial Industry Regulatory Authority (FINRA) Exam Questions and Answers 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? - Answer️️ - 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 - Answer️️ -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? - Answer️️ -It has authority to regulate the OTC market in nonexempt securities. All branch offices of a member broker/dealer must be registered with FINRA. TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD OWNER: EMILLYCHARLOTTE COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED FIRST PUBLISHED: SEPTEMBER 2024 2/15 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? - Answer️️ -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: - Answer️️ -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? - Answer️️ -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 - Answer️️ - FINRA fees are determined by the number of registered representatives, principals, and branch offices registered with FINRA. TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD OWNER: EMILLYCHARLOTTE COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED FIRST PUBLISHED: SEPTEMBER 2024 3/15 Regarding offices of FINRA member firms, which of the following statements is CORRECT - Answer️️ -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 - Answer️️ - 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? - Answer️️ -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