Series 24 - Cheat Sheet Exam with
Complete Solutions
after notice by FINRA, how long do members have to pay fees? - ANSWER-21 days
how much notice needs to be give to FINRA before a material change to a firm? -
ANSWER-30 days
how long after statutory dq'ing event must you report an associated person to FINRA? -
ANSWER-do it promptly, no longer than 30 days
what are two ways to be DQ'd by FINRA? - ANSWER-convicted of money/securities
misdemeanor, or any felony within past 10 years
how often must the firm element of continuing ed be completed? - ANSWER-annually
when must regulatory element of continuing ed be completed? - ANSWER-within 120
days of second registration anniversary and every 3 years after
what can active military service do? - ANSWER-receive commissions on book, 2 year
expiration clock rolled, must reactivate within 90 days of return
what can active military service not do? - ANSWER-no form U5 necessary, cannot
perform as RR, CE requirement suspended
what is FINRA rule 3110? - ANSWER-how often inspections must occur
how often must OSJ and supervising branches be inspected? - ANSWER-annually
how often must non supervising branches be inspected? - ANSWER-every three years
what is FINRA rule 3120? - ANSWER-principals must submit to management annually a
report detailing system of supervisory controls
what two things does FINRA rule 3130 do? - ANSWER-CEO must certify annually that
firm has proper supervisory procedures in place; firm must designate chief compliance
officer
what does FINRA rule 4370 state? - ANSWER-business continuity plans must be
disclosed to customers on account opening; firms must designate two associated
persons as emergency contacts; changes to contact info must be updated promptly
, how long do you have to amend a form U4? - ANSWER-30 days
how do you amend a form U4? - ANSWER-with DRPs (new needs reps signature)
how long to file a form U5? - ANSWER-within 30 days of employee termination?
who does U5 go to? - ANSWER-both FINRA and terminated employee
who provides U5 copy to new firm? - ANSWER-employee (2 days) or FINRA
who needs to be at each OSJ? - ANSWER-at least one principal
what is kept at OSJ? - ANSWER-customer records including complaints
how often is compliance meeting required for RRs and principals? - ANSWER-annually
if you have to record calls, how long after FINRA notification to set up? - ANSWER-60
days
what do private securities transactions require? - ANSWER-written notice to member
firm and written permission from member?
when is sharing in customer accounts permitted? - ANSWER-with principal approval
how is sharing in customer accounts divided? - ANSWER-proportionate to contribution
what are three ways where RR can borrow money from customer? - ANSWER-
customer is family, or lending institution, procedures for loans are set in WSP
if you operate at a bank, what must you do? - ANSWER-disclose to customers that
operating jurisdiction, rules, etc. are different from the bank
what must be done to get continuing commissions? - ANSWER-must have written
agreement in place
what is retail comunication? - ANSWER-any written communication distributed or made
available to more than 25 retail investors within any 30 day calendar period
what are social media posts subject to? - ANSWER-principal approval and record
keeping rules
how long to file investment analysis tools with FINRA? - ANSWER-10 days after first
use
Complete Solutions
after notice by FINRA, how long do members have to pay fees? - ANSWER-21 days
how much notice needs to be give to FINRA before a material change to a firm? -
ANSWER-30 days
how long after statutory dq'ing event must you report an associated person to FINRA? -
ANSWER-do it promptly, no longer than 30 days
what are two ways to be DQ'd by FINRA? - ANSWER-convicted of money/securities
misdemeanor, or any felony within past 10 years
how often must the firm element of continuing ed be completed? - ANSWER-annually
when must regulatory element of continuing ed be completed? - ANSWER-within 120
days of second registration anniversary and every 3 years after
what can active military service do? - ANSWER-receive commissions on book, 2 year
expiration clock rolled, must reactivate within 90 days of return
what can active military service not do? - ANSWER-no form U5 necessary, cannot
perform as RR, CE requirement suspended
what is FINRA rule 3110? - ANSWER-how often inspections must occur
how often must OSJ and supervising branches be inspected? - ANSWER-annually
how often must non supervising branches be inspected? - ANSWER-every three years
what is FINRA rule 3120? - ANSWER-principals must submit to management annually a
report detailing system of supervisory controls
what two things does FINRA rule 3130 do? - ANSWER-CEO must certify annually that
firm has proper supervisory procedures in place; firm must designate chief compliance
officer
what does FINRA rule 4370 state? - ANSWER-business continuity plans must be
disclosed to customers on account opening; firms must designate two associated
persons as emergency contacts; changes to contact info must be updated promptly
, how long do you have to amend a form U4? - ANSWER-30 days
how do you amend a form U4? - ANSWER-with DRPs (new needs reps signature)
how long to file a form U5? - ANSWER-within 30 days of employee termination?
who does U5 go to? - ANSWER-both FINRA and terminated employee
who provides U5 copy to new firm? - ANSWER-employee (2 days) or FINRA
who needs to be at each OSJ? - ANSWER-at least one principal
what is kept at OSJ? - ANSWER-customer records including complaints
how often is compliance meeting required for RRs and principals? - ANSWER-annually
if you have to record calls, how long after FINRA notification to set up? - ANSWER-60
days
what do private securities transactions require? - ANSWER-written notice to member
firm and written permission from member?
when is sharing in customer accounts permitted? - ANSWER-with principal approval
how is sharing in customer accounts divided? - ANSWER-proportionate to contribution
what are three ways where RR can borrow money from customer? - ANSWER-
customer is family, or lending institution, procedures for loans are set in WSP
if you operate at a bank, what must you do? - ANSWER-disclose to customers that
operating jurisdiction, rules, etc. are different from the bank
what must be done to get continuing commissions? - ANSWER-must have written
agreement in place
what is retail comunication? - ANSWER-any written communication distributed or made
available to more than 25 retail investors within any 30 day calendar period
what are social media posts subject to? - ANSWER-principal approval and record
keeping rules
how long to file investment analysis tools with FINRA? - ANSWER-10 days after first
use
