Chapter 17 Custom Exam Questions and Answers | 100% Pass

Chapter 17 Custom Exam Questions and Answers | 100% Pass A registered person who is employed by a broker-dealer has committed an offense that makes the person subject to statutory disqualification. The firm is MOST likely to take which of the following actions? A) No longer permit the person to be associated with the member firm B) Permit the person to be associated with the member firm, but require increased supervision C) Permit the person to be associated with the member firm, but only in a non- registered capacity D) Permit the person to be associated with the member firm provided FINRA is notified - Answer️️ -A) No longer permit the person to be associated with the member firm As a general rule, any person who is subject to statutory disqualification may not be associated with a FINRA member firm in any capacity, even in a non-registered capacity. The firm is also required to report the event to FINRA. The member firm may request an eligibility proceeding to determine whether the person can remain in a registered capacity; however, there is no guarantee that the request will be granted. If the employee is terminated, the firm will file a Form U5. TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD OWNER: EMILLYCHARLOTTE COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED FIRST PUBLISHED: SEPTEMBER 2024 2/16 A person is subject to the Regulatory Element of Continuing Education: A) If she has failed any qualification exam B) On the second anniversary of her registration and every three years thereafter C) Annually D) Only if she has been subject to disciplinary action - Answer️️ -B) On the second anniversary of her registration and every three years thereafter The Continuing Education Regulatory Element for registered personnel begins on the second anniversary of her initial registration, and then is triggered every three years thereafter. If representatives do not participate, their registration becomes inactive. There is no graduation from the Regulatory Element. Which of the following descriptions BEST defines the Regulatory Element of Continuing Education (CE)? A) The requirement is triggered when a registered person violates industry rules. B) It can be accomplished by attending a seminar given by your firm. C) It ensures that registered persons are kept up-to-date on sales practices, compliance, and regulatory matters. D) It is a prerequisite for principal registration. - Answer️️ -C) It ensures that registered persons are kept up-to-date on sales practices, compliance, and regulatory matters. TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD OWNER: EMILLYCHARLOTTE COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED FIRST PUBLISHED: SEPTEMBER 2024 3/16 The Regulatory Element of CE is a compulsory requirement that must be met on the second anniversary date of a registered representative's registration. It continues at a three-year interval thereafter. Which of the following employees of a broker-dealer is not required to be fingerprinted? A) A back office employee who handles customer funds. B) A clerk who has access to records of original entry. C) A senior officer of the firm who only provides capital to the firm. D) A registered representative who processes trades in the back office. - Answer️️ -C) A senior officer of the firm who only provides capital to the firm. According to SEC Rule 17-2, all partners, directors, officers and employees of broker- dealers who are involved in the sale of securities, handling securities, monies, or records of original entry, or supervise any of the above must be fingerprinted. An officer of a firm who simply provides capital to the firm and is not involved in the handling of funds and/or securities, or dealing with the firm's books and records, is exempt from the fingerprinting requirement. (17583) If a newly hired person is employed by a broker-dealer and will be offering corporate securities, she can become FINRA registered by: A) Passing the SIE Exam only B) Passing the SIE Exam the Series 6 Exam C) Passing the Series 6 Exam only TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD OWNER: EMILLYCHARLOTTE COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED FIRST PUBLISHED: SEPTEMBER 2024 4/16 D) Passing the SIE Exam and the Series 7 Exam - Answer️️ -D) Passing the SIE Exam and the Series 7 Exam In order to become properly registered or qualified, a newly hired person must pass the SIE Exam and the appropriate FINRA licensing exam. To offer corporate securities, a person must pass the Series 7 Exam plus the SIE Exam. A registered representative who just passed the Series 7 Examination disclosed several of the test questions to a colleague who is about to take the same examination. The colleague uses this information, but still fails the test. Which of the following statements is TRUE? A) FINRA may discipline the person who disclosed the information, but the person who received the information isn't subject to disciplinary action because he didn't pass the examination. B) FINRA may discipline the person who received the information, but the person who disclosed the information isn't subject to disciplinary action. C) FINRA may discipline both individuals. D) Neither person is subject to disciplinary action since this activity is permitted as long as the test items are not written down. - Answer️️ -C) FINRA may discipline both individuals. TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD OWNER: EMILLYCHARLOTTE COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED FIRST PUBLISHED: SEPTEMBER 2024 5/16 Both persons are subject to disciplinary action. FINRA considers the content of its qualification examinations confidential; therefore, it's a violation to give assistance to, or receive assistance from, any person taking an examination. Additionally, it's a violation to disclose parts of an examination to another person, to receive parts of an examination from another person, to compromise the contents of a past or present examination in any way, or to knowingly sign a false certification concerning an examination. Although the colleague failed the exam, he's still subject to disciplinary action. A registered representative purchased a vacation property, but it has since fallen in value. The RR decides to sell the property short and the bank agrees to accept the proceeds of the sale as payment in full for the mortgage. Is the registered representative required to take any action? A) Yes, the RR must notify FINRA. B) Yes, the RR must obtain her broker-dealer's preapproval of the short sale. C) Only if the property has gone into foreclosure. D) Only if the property was the RR's primary residence. - Answer️️ -A) Yes, the RR must notify FINRA. When the proceeds of a short sale of property is used to settle the payment of a mortgage at less than its full amount, it's considered a "compromise with creditors" and FINRA must be notified by the filing of an updated Form U4. (17584) TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD OWNER: EMILLYCHARLOTTE COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED FIRST PUBLISHED: SEPTEMBER 2024 6/16 If a registered representative does not meet the Regulatory Element requirements of continuing education: A) She cannot perform the duties of a registered person B) There is an automatic 30-day suspension C) She may continue to work as a registered person, but under heightened supervision D) She is not permitted to be employed by the member firm - Answer️️ -A) She cannot perform the duties of a registered person Failure to complete the Regulatory Element within 120 days of the registered person's anniversary date has negative consequences. In this case, a registered person may not perform the duties of a registered person regarding executing securities transactions or performing investment banking activities. FINRA refers to this situation as CE Inactive. The individual is permitted to be employed by the member firm, but only in a non- registered capacity until the CE requirement is satisfied. State or Blue-Sky Laws may require a registered person to t