FINRA Series 26 || All Questions Answered Correctly.
FINRA Rule 3010 correct answers 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 answers 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 answers Covers handling of securities violations and complaints.
Think what happens after an investigation (Rule 8000)
District Business Conduct Committee correct answers Has initial jurisdiction in handling of
complaints.
Penalties the DBCC & Board of Governors can impose correct answers Censure, fine, suspend,
expel, bar
FINRA Rule IM-3110 correct answers Defines complaint, says each OSJ must maintain a record
of complaints and any action taken.
Complaint correct answers Any written statement of a customer or any person acting on behalf
of the customer alleging a grievance
Code of Procedure correct answers Deals with rules that cover actions by FINRA against
member firms and their associated people
Code of Arbitration correct answers requires disputes be submitted for arbitration. Includes
member and customer and/or associated person
Director of Mediation correct answers Person appointed by FINRA to administer proceedings
FINRA Rule 3020 correct answers Blanket fidelity bond. Minimum coverage amount is $25,000.
Think 2=$25,000.
FINRA Rule 3030 correct answers Outside business activities. Must be written notification.
FINRA Rule 3040 correct answers Private securities transactions. Written notice must include:
1. proposed transaction
2. proposed role
3. compensation conditons
Selling away correct answers 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 answers 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 answers 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 answers 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 answers 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 answers Tombstone ads. Not considered advertising
SEC Rule 156 correct answers Sales literature. Any communication used by any person to offer
or sell or induce the sale of securities
Rule 34b-1 (Act of '40) correct answers Sales literature deemed to be misleading
Rule 482 correct answers Advertising by an investment company. Omitting prospectus falls
under this rule.
This must be included in the calculations for money market fund performance correct answers 7
day period and date of the last day in the period must be disclosed. Current & compounded
yields are allowed if the base period is the same.
Non money market fund calculations correct answers 30 day period. Tax equivalent yields must
have disclosure of tax rate.
FINRA Rule 2110 correct answers Standards of commercial honor & principles of trade
FINRA Rule 2010 correct answers No using fraud, deception, or manipulation to induce a sale
FINRA Rule 2200 correct answers Covers communications with customers and the public.
Tombstone ads are exempt under this rule.
Sales literature filing requirements correct answers 10 days prior to first use for investment
companies, unit investment trusts, variable contracts, & government securities
These are kept on file for 3 years correct answers Customer confirms, power of attorney, & order
tickets
FINRA Rule 3010 correct answers 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 answers 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 answers Covers handling of securities violations and complaints.
Think what happens after an investigation (Rule 8000)
District Business Conduct Committee correct answers Has initial jurisdiction in handling of
complaints.
Penalties the DBCC & Board of Governors can impose correct answers Censure, fine, suspend,
expel, bar
FINRA Rule IM-3110 correct answers Defines complaint, says each OSJ must maintain a record
of complaints and any action taken.
Complaint correct answers Any written statement of a customer or any person acting on behalf
of the customer alleging a grievance
Code of Procedure correct answers Deals with rules that cover actions by FINRA against
member firms and their associated people
Code of Arbitration correct answers requires disputes be submitted for arbitration. Includes
member and customer and/or associated person
Director of Mediation correct answers Person appointed by FINRA to administer proceedings
FINRA Rule 3020 correct answers Blanket fidelity bond. Minimum coverage amount is $25,000.
Think 2=$25,000.
FINRA Rule 3030 correct answers Outside business activities. Must be written notification.
FINRA Rule 3040 correct answers Private securities transactions. Written notice must include:
1. proposed transaction
2. proposed role
3. compensation conditons
Selling away correct answers 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 answers 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 answers 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 answers 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 answers 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 answers Tombstone ads. Not considered advertising
SEC Rule 156 correct answers Sales literature. Any communication used by any person to offer
or sell or induce the sale of securities
Rule 34b-1 (Act of '40) correct answers Sales literature deemed to be misleading
Rule 482 correct answers Advertising by an investment company. Omitting prospectus falls
under this rule.
This must be included in the calculations for money market fund performance correct answers 7
day period and date of the last day in the period must be disclosed. Current & compounded
yields are allowed if the base period is the same.
Non money market fund calculations correct answers 30 day period. Tax equivalent yields must
have disclosure of tax rate.
FINRA Rule 2110 correct answers Standards of commercial honor & principles of trade
FINRA Rule 2010 correct answers No using fraud, deception, or manipulation to induce a sale
FINRA Rule 2200 correct answers Covers communications with customers and the public.
Tombstone ads are exempt under this rule.
Sales literature filing requirements correct answers 10 days prior to first use for investment
companies, unit investment trusts, variable contracts, & government securities
These are kept on file for 3 years correct answers Customer confirms, power of attorney, & order
tickets
