FINANCIAL INDUSTRY REGULATORY AUTHORITY FINRA WITH CORRECT ANSWERS

FINANCIAL INDUSTRY REGULATORY
AUTHORITY FINRA WITH CORRECT
ANSWERS


A registered representative with ABC Securities, a FINRA memb
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er broker/dealer, terminates his registration and affiliates with XY
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Z Securities, another FINRA member broker/dealer. Which of the
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following statements is CORRECT? - CORRECT ANSWER-
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Continuing commissions on clients remaining with ABC can be p
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aid to the registered representative if it is in the representative's c
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ontract. k


As long as the new affiliation takes place within two years of the te
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rmination, there would not be a requirement to re- k k k k k k k k


qualify by examination. k k k


Continuing commissions may be paid on business that "continue
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s" to accrue at the initial B/D as long as it is in the employee's cont
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ract. There is a two-year limit on re-registering without need to re-
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take the exam. It would be a prohibited practice to remove files fro
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m the office and there is nothing to stop the representative's client
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s from changing their B/D of record to the new firm
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FINRA was established to - CORRECT ANSWER-
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encourage just and equitable principles of trade. k k k k k k


adopt and enforce its Conduct Rules among brokers and dealers.
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Which of the following statements about FINRA are TRUE? -
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kCORRECT ANSWER- k


It has authority to regulate the OTC market in nonexempt securiti
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es. k


All branch offices of a member broker/dealer must be registered
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with FINRA. k


Firms transacting business in the over-the-
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counter market and/or members of the New York Stock Exchang
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, e must register with the SEC and are eligible for membership in FI
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NRA. If a broker/dealer is a member, each branch office of the bro
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ker/dealer must be registered with FINRA. Not all broker/dealers
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are required to be FINRA members, and they may also hold mem
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bership in other exchanges. k k k




Which of the following changes to a U-
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4 form must be communicated to the registered representative's
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broker/dealer and to FINRA? - CORRECT ANSWER-Bankruptcy k k k k k k


The broker/dealer and FINRA must be notified if a registered repr
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esentative files for bankruptcy; the other occurrences listed do no
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t require FINRA notification
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If a FINRA member firm suspends a registered representative, th
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e firm must report the suspension to: - CORRECT ANSWER-
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FINRA. k


The firm must report the suspension to its designated examining
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authority (DEA), in this case, the Financial Industry Regulatory A
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uthority (FINRA). k




A change to which of the following items requires amending the F
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orm U-4? - CORRECT ANSWER-
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A home address change requires an amendment to Form U-
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4. A change to the member firm's address requires the firm to am
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end its Form BD, but not the representative's Form U-
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4. Marital status and vacation home address are not items of infor
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mation on Form U-4. k k k




FINRA fees paid by a member firm are based on which of the follo
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wing - CORRECT ANSWER- k k k


FINRA fees are determined by the number of registered represen
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tatives, principals, and branch offices registered with FINRA.
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Regarding offices of FINRA member firms, which of the following
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statements is CORRECT - CORRECT ANSWER- k k k k k


All member firms must have at least one OSJ, managed by at lea
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st one resident principal. All branch offices must be registered wit
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