FINRA Series 26 Exam 69 Questions with Verified Answers
FINRA Rule 3010 - CORRECT ANSWER Rule that states each member must:
I. Establish written supervisory procedures
II. A registered principal is responsible for reviewing procedures
III. Each rep is assigned to a principal in charge of supervising their activities,
review of communication, & correspondence bw reps & the public
FINRA Rule 8000 - CORRECT ANSWER Investigations & Sanctions. Must keep and
maintain a current copy of the manual in a readily accessible place and provide it
at a customer's request.
FINRA Rule 9000 - CORRECT ANSWER Covers handling of securities violations and
complaints. Think what happens after an investigation (Rule 8000)
District Business Conduct Committee - CORRECT ANSWER Has initial jurisdiction
in handling of complaints.
Penalties the DBCC & Board of Governors can impose - CORRECT ANSWER
Censure, fine, suspend, expel, bar
FINRA Rule IM-3110 - CORRECT ANSWER Defines complaint, says each OSJ must
maintain a record of complaints and any action taken.
Complaint - CORRECT ANSWER Any written statement of a customer or any
person acting on behalf of the customer alleging a grievance
Code of Procedure - CORRECT ANSWER Deals with rules that cover actions by
FINRA against member firms and their associated people
Code of Arbitration - CORRECT ANSWER requires disputes be submitted for
arbitration. Includes member and customer and/or associated person
Director of Mediation - CORRECT ANSWER Person appointed by FINRA to
administer proceedings
, FINRA Rule 3020 - CORRECT ANSWER Blanket fidelity bond. Minimum coverage
amount is $25,000. Think 2=$25,000.
FINRA Rule 3030 - CORRECT ANSWER Outside business activities. Must be written
notification.
FINRA Rule 3040 - CORRECT ANSWER Private securities transactions. Written
notice must include:
1. proposed transaction
2. proposed role
3. compensation conditons
Selling away - CORRECT ANSWER transaction affected outside the normal
business of an associated person's employment. Not recorded on books or
records. Is a violation of conduct rules.
FINRA Rule 3050 - CORRECT ANSWER Transactions for or by associated people.
Must have duplicate copies of confirms, statements, and other documentation.
Must notify employer in writing prior to certain transactions.
FINRA Rule 3060 - CORRECT ANSWER Penalty for bribing a foreign official is
$100,000 fine & 5 yrs or both for a person, $2mil for a business.
FINRA Rule 3070 - CORRECT ANSWER Must promptly report suspension, barring,
fines over $2500, named as a defendant or respondent, associating with someone
subject to statutory disqualification.
Information required in a prospectus - CORRECT ANSWER Investment objectives,
policies, and restrictions, sales loads & fees, expense table, breakpoints, rights of
accumulations, LOI's, exchange privileges, per share income & capital charges,
methods of sale, methods of redemption, investment & withdrawal plans,
financial statments
SEC Rule 134 - CORRECT ANSWER Tombstone ads. Not considered advertising
FINRA Rule 3010 - CORRECT ANSWER Rule that states each member must:
I. Establish written supervisory procedures
II. A registered principal is responsible for reviewing procedures
III. Each rep is assigned to a principal in charge of supervising their activities,
review of communication, & correspondence bw reps & the public
FINRA Rule 8000 - CORRECT ANSWER Investigations & Sanctions. Must keep and
maintain a current copy of the manual in a readily accessible place and provide it
at a customer's request.
FINRA Rule 9000 - CORRECT ANSWER Covers handling of securities violations and
complaints. Think what happens after an investigation (Rule 8000)
District Business Conduct Committee - CORRECT ANSWER Has initial jurisdiction
in handling of complaints.
Penalties the DBCC & Board of Governors can impose - CORRECT ANSWER
Censure, fine, suspend, expel, bar
FINRA Rule IM-3110 - CORRECT ANSWER Defines complaint, says each OSJ must
maintain a record of complaints and any action taken.
Complaint - CORRECT ANSWER Any written statement of a customer or any
person acting on behalf of the customer alleging a grievance
Code of Procedure - CORRECT ANSWER Deals with rules that cover actions by
FINRA against member firms and their associated people
Code of Arbitration - CORRECT ANSWER requires disputes be submitted for
arbitration. Includes member and customer and/or associated person
Director of Mediation - CORRECT ANSWER Person appointed by FINRA to
administer proceedings
, FINRA Rule 3020 - CORRECT ANSWER Blanket fidelity bond. Minimum coverage
amount is $25,000. Think 2=$25,000.
FINRA Rule 3030 - CORRECT ANSWER Outside business activities. Must be written
notification.
FINRA Rule 3040 - CORRECT ANSWER Private securities transactions. Written
notice must include:
1. proposed transaction
2. proposed role
3. compensation conditons
Selling away - CORRECT ANSWER transaction affected outside the normal
business of an associated person's employment. Not recorded on books or
records. Is a violation of conduct rules.
FINRA Rule 3050 - CORRECT ANSWER Transactions for or by associated people.
Must have duplicate copies of confirms, statements, and other documentation.
Must notify employer in writing prior to certain transactions.
FINRA Rule 3060 - CORRECT ANSWER Penalty for bribing a foreign official is
$100,000 fine & 5 yrs or both for a person, $2mil for a business.
FINRA Rule 3070 - CORRECT ANSWER Must promptly report suspension, barring,
fines over $2500, named as a defendant or respondent, associating with someone
subject to statutory disqualification.
Information required in a prospectus - CORRECT ANSWER Investment objectives,
policies, and restrictions, sales loads & fees, expense table, breakpoints, rights of
accumulations, LOI's, exchange privileges, per share income & capital charges,
methods of sale, methods of redemption, investment & withdrawal plans,
financial statments
SEC Rule 134 - CORRECT ANSWER Tombstone ads. Not considered advertising
