Financial Industry
Regulatory Authority
(FINRA) Updated 2024
with 100% Correct
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? - ANS-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 - ANS-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? - ANS-It has authority to regulate the OTC
market in nonexempt securities.
All branch offices of a member broker/dealer must be registered with FINRA.
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? - ANS-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: - ANS-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? - ANS-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.
Regulatory Authority
(FINRA) Updated 2024
with 100% Correct
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? - ANS-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 - ANS-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? - ANS-It has authority to regulate the OTC
market in nonexempt securities.
All branch offices of a member broker/dealer must be registered with FINRA.
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? - ANS-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: - ANS-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? - ANS-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.
