Progress Exam 2B - Series 24
Which of the following statements is TRUE regarding simplified arbitration?
A. This process is used only if the dispute involves public customers.
B. The panel in this process may be made up solely of 3 or more unaffiliated
arbitrators.
C. There is only one arbitrator.
D. This process may only be used by member firms. - correct answer ✔C.
There is only one arbitrator.
Simplified arbitration is used if the amount of the dispute does not exceed
$50,000 and the dispute involves a public customer. If the dispute is between
members or affiliated persons and does not exceed $50,000 then the type of
arbitration used would be simplified industry arbitration and the arbitrator
would be a non-public arbitrator deciding the case based on written evidence
without a hearing but the public customer can either demand or consent to
both a hearing and an arbitrator from within the industry.
If an associated person is subject to a statutory disqualification, what is the
obligation of the employing member firm?
A. Update Form U4 within 10 days.
B. File Form U5 within 10 days.
,C. File Form U5 within 30 days.
D. Notify all customers within 72 hours. - correct answer ✔A. Update Form
U4 within 10 days.
If an associated person is subject to statutory disqualification, his employer is
required to update Form U4 within 10 days. The firm may seek relief from
disqualification through a process that includes a review by a Statutory
Disqualification Committee. The Committee's decisions are sent to FINRA's
National Adjudicatory Council (NAC) for review but are not final until approved
by the SEC.
An RR has left her firm and a U-5 has been filed. For how long is her formed
employer required to report event(s) that are discovered subsequent to her
departure?
A. 24 months.
B. 36 months.
C. 10 years.
D. The obligation is ongoing with no time limit. - correct answer ✔D. The
obligation is ongoing with no time limit.
Member firms are under an ongoing obligation to report rule violations
discovered after an employee has left the fimr.
The Code of Arbitration may not apply to disputes between:
, A. A customer and a member firm.
B. 2 member firms.
C. An employee who alleges sexual discrimination and his firm.
D. An RR who alleges non-payment of commissions and his firm. - correct
answer ✔C. An employee who alleges sexual discrimination and his firm.
The Code of Arbitration applies to disputes between a member firm and a
customer, a member firm and an employee, a member firm and another
member firm, or between a member firm and a non-member broker-dealer.
Arbitration does not apply to disputes between a member firm and FINRA. In
the event of a non-business-related dispute (discrimination, etc.) between a
member firm and an employee, the arbitration process may or may not be
used based on the preferences of the employee.
What is the breakpoint calculation for mutual funds based on?
A. All purchases by an individual in a specific fund.
B. All mutual purchases by an individual in a fund family.
C. All mutual fund purchases by related individuals.
D. All purchases by related individuals in a fund family. - correct answer ✔D.
All purchases by related individuals in a fund family.
Which of the following statements is TRUE regarding simplified arbitration?
A. This process is used only if the dispute involves public customers.
B. The panel in this process may be made up solely of 3 or more unaffiliated
arbitrators.
C. There is only one arbitrator.
D. This process may only be used by member firms. - correct answer ✔C.
There is only one arbitrator.
Simplified arbitration is used if the amount of the dispute does not exceed
$50,000 and the dispute involves a public customer. If the dispute is between
members or affiliated persons and does not exceed $50,000 then the type of
arbitration used would be simplified industry arbitration and the arbitrator
would be a non-public arbitrator deciding the case based on written evidence
without a hearing but the public customer can either demand or consent to
both a hearing and an arbitrator from within the industry.
If an associated person is subject to a statutory disqualification, what is the
obligation of the employing member firm?
A. Update Form U4 within 10 days.
B. File Form U5 within 10 days.
,C. File Form U5 within 30 days.
D. Notify all customers within 72 hours. - correct answer ✔A. Update Form
U4 within 10 days.
If an associated person is subject to statutory disqualification, his employer is
required to update Form U4 within 10 days. The firm may seek relief from
disqualification through a process that includes a review by a Statutory
Disqualification Committee. The Committee's decisions are sent to FINRA's
National Adjudicatory Council (NAC) for review but are not final until approved
by the SEC.
An RR has left her firm and a U-5 has been filed. For how long is her formed
employer required to report event(s) that are discovered subsequent to her
departure?
A. 24 months.
B. 36 months.
C. 10 years.
D. The obligation is ongoing with no time limit. - correct answer ✔D. The
obligation is ongoing with no time limit.
Member firms are under an ongoing obligation to report rule violations
discovered after an employee has left the fimr.
The Code of Arbitration may not apply to disputes between:
, A. A customer and a member firm.
B. 2 member firms.
C. An employee who alleges sexual discrimination and his firm.
D. An RR who alleges non-payment of commissions and his firm. - correct
answer ✔C. An employee who alleges sexual discrimination and his firm.
The Code of Arbitration applies to disputes between a member firm and a
customer, a member firm and an employee, a member firm and another
member firm, or between a member firm and a non-member broker-dealer.
Arbitration does not apply to disputes between a member firm and FINRA. In
the event of a non-business-related dispute (discrimination, etc.) between a
member firm and an employee, the arbitration process may or may not be
used based on the preferences of the employee.
What is the breakpoint calculation for mutual funds based on?
A. All purchases by an individual in a specific fund.
B. All mutual purchases by an individual in a fund family.
C. All mutual fund purchases by related individuals.
D. All purchases by related individuals in a fund family. - correct answer ✔D.
All purchases by related individuals in a fund family.
