Series 24 Exam Questions with 100% Correct
Answers
Form NMA Correct Answer: Opens 180 day window for
new application for b/d registration
Finra responsibilities Correct Answer: Obl/authority
interpret rules, fees, compliance issues, disputes, CRD,
education
Form BD Correct Answer: form used by B/D to register
with SEC, SRO's. Must be updated within 30 days when
out of date.
Form CMA Correct Answer: must be filed electronically
when there is a change in ownership or control.
Finra regulates which securities? Correct Answer: OTC
nonexempt securities
Nasdaq rule 1014 Correct Answer: org chart, business
plan, supervisory systems, financial projections, record
keeping
When are DBA's acceptable? Correct Answer:
acceptable if filed with finra and commission
,Each B/D must have a min of how many principals
register (except for Sole proprietors)? Correct Answer: 2
principals (min)
DMR ( Dept of Member Registration)
process/responsibilities? Correct Answer: review
applicants capital, scope of business harmony with
public interest and protection of investors.
DMR issues a written decision within how many days of
the pre-membership interview? Correct Answer: 30 days
(grant the application, deny it, grant with restrictions)
Finra requires how many resident principals for Office of
Supervisory Jurisdiction? Correct Answer: 1 resident
principal
What is statutory disqualification? Correct Answer:
disciplinary actions in the last 10 years by SEC.
What is form MC400? Correct Answer: Form that needs
to be completed if a firm wants to sponsor a person who
was disqualified. Disqualifications also include DUI and
assault, however, they do not pose a risk to investors and
may be approved.
,What is the fee paid by firms to employee statutory
disqualified employees (if approved by finra)? Correct
Answer: $1500 annually Tier 1
$1000 annually Tier 2
If Finra bars or suspends a Associated Person, member
firms cannot Correct Answer: employee these people in
any capacity
What is rule 9522? Correct Answer: Dept of Member
Regulation (DMR) has right to approve statutory
disqualified persons to become an associate of a
member firm.
What is rule Rule 4530 Correct Answer: must report within
30 calendar days.
What is Form BDW used for ? Correct Answer: used to
withdraw registration as a B/D
Member firms membership can be suspended/revoked
if feed are not paid with in how many days? Correct
Answer: 15 days
, When is a principal required? Correct Answer: 1)actively
engaged in mngt of investment banking/securities
business
2) When supervising associated persons
How many days does a b/d have to respond to a
potential employer regarding an associated person?
Correct Answer: 10 business days
How many years of employment do principals need
check before signing U-4? Correct Answer: 3 years
Finger printing Correct Answer: 3 attempts
summer interns do not need finger printing
non- registered persons - outside bookkeeping vendors
U-5 Correct Answer: 1) must be completed in 30 days of
termination.
2) new employer gets U-5 from Finra (not former
employer)
Answers
Form NMA Correct Answer: Opens 180 day window for
new application for b/d registration
Finra responsibilities Correct Answer: Obl/authority
interpret rules, fees, compliance issues, disputes, CRD,
education
Form BD Correct Answer: form used by B/D to register
with SEC, SRO's. Must be updated within 30 days when
out of date.
Form CMA Correct Answer: must be filed electronically
when there is a change in ownership or control.
Finra regulates which securities? Correct Answer: OTC
nonexempt securities
Nasdaq rule 1014 Correct Answer: org chart, business
plan, supervisory systems, financial projections, record
keeping
When are DBA's acceptable? Correct Answer:
acceptable if filed with finra and commission
,Each B/D must have a min of how many principals
register (except for Sole proprietors)? Correct Answer: 2
principals (min)
DMR ( Dept of Member Registration)
process/responsibilities? Correct Answer: review
applicants capital, scope of business harmony with
public interest and protection of investors.
DMR issues a written decision within how many days of
the pre-membership interview? Correct Answer: 30 days
(grant the application, deny it, grant with restrictions)
Finra requires how many resident principals for Office of
Supervisory Jurisdiction? Correct Answer: 1 resident
principal
What is statutory disqualification? Correct Answer:
disciplinary actions in the last 10 years by SEC.
What is form MC400? Correct Answer: Form that needs
to be completed if a firm wants to sponsor a person who
was disqualified. Disqualifications also include DUI and
assault, however, they do not pose a risk to investors and
may be approved.
,What is the fee paid by firms to employee statutory
disqualified employees (if approved by finra)? Correct
Answer: $1500 annually Tier 1
$1000 annually Tier 2
If Finra bars or suspends a Associated Person, member
firms cannot Correct Answer: employee these people in
any capacity
What is rule 9522? Correct Answer: Dept of Member
Regulation (DMR) has right to approve statutory
disqualified persons to become an associate of a
member firm.
What is rule Rule 4530 Correct Answer: must report within
30 calendar days.
What is Form BDW used for ? Correct Answer: used to
withdraw registration as a B/D
Member firms membership can be suspended/revoked
if feed are not paid with in how many days? Correct
Answer: 15 days
, When is a principal required? Correct Answer: 1)actively
engaged in mngt of investment banking/securities
business
2) When supervising associated persons
How many days does a b/d have to respond to a
potential employer regarding an associated person?
Correct Answer: 10 business days
How many years of employment do principals need
check before signing U-4? Correct Answer: 3 years
Finger printing Correct Answer: 3 attempts
summer interns do not need finger printing
non- registered persons - outside bookkeeping vendors
U-5 Correct Answer: 1) must be completed in 30 days of
termination.
2) new employer gets U-5 from Finra (not former
employer)
