Hiring and Qualifications Chapter 10-15 Questions

Are Not considered securities

non- government entity, they have the power to create and enforce the industry regulations and standards. 

There priority is to promote ethics and equality and to protect investors.

Established and enforces it own rules, regulations and membership standards.

within 180 calendar days from the date FINRA receives the completed app.

• Receive in writing within 30 days
• applicant will have 60 days to respond

45 Days after form BD is filled by the successor

Has to send out something in writing atleast once a year. such as a public disclosure program

• - Finra 1-800 #
• -finra website
• -Brokercheck info

Previous 10 years by the SEC, another SRO, a foreign reg. or foreign equivalent of an SRO

• willful misstatements of facts in a app for membership or regristration
• - felony conviction involvng securities or money within the past 10 yrs

Filing fee is $1500

• Most Serious offenders and requires annual exams
• `annual fee of $1500 to Finra

• for disqualifyng misconduct of less serious nature
• ~$1000 fee per year

Indiv & Members  without supervision. no special requirements

~No Fee

Principal verifies applicant employment for the past 3 years and attest to the character and reputation of the person

• ~ Five year residency history
• ~10 year employment (principal verifies the last 3)

Not required on the U4

material changes must file no later than 30 days after becoming aware. 

~if it's results in a SD, must amend with 10 Business Days 

Must let the CRD know within 30 days

The EMPLOYEE must produce it within 2 BUSINESS DAYs of the request

~the old employer is not req. to send it to the new employer

Will be placed on hold until 90 After returning from serivce (must notifiy finra when you return). If they don't, the standard 2 years applies.

Once advised, they are required to get up and running within 60 days

Must maintain the records for 3 Years

• Clerical
• not actively engaged in invst bank or securities activities
• Silent Partners
• solely executing transactions in municipals sec. or commodities

Must register with FINRa but are exempt from having to pass an exam

1st - 30 Days 

2nd - 30 Days

3rd - 180 Days (6 Months)

• Assoc. persons engaged in the securities business
• =assistant officer who does not func as princ.
• =indiv who supervises, solicits, conducts biz in securities
• =indiv who trains people to supervise, solict or conduct biz in securities. (stating they must be licensed)

can only sell closed end funds only as a new issue, once traded in the 2ndary mkt they can't sell them

Cant receive commissions for any transactions

~can give quotes and process orders, but can't solicit

advisers who maintain offices in only 1 state, clients are all in that state, dont give advice on securities listed on any exchange

~Clients are all Insurance Co's. 

• ~Private fund advisers, only give advice to private funds with AUM of less than $150M in the US
• ~Foreign Adv with no place of Biz in the US, but have less than 15 US clients and AUM of less than $25M
• ~advisers to Venture Capital funds

• ~Banks and Bank holding Co's.
• ~Publishers of bona fide newspapers or reg circualating mags, wall street journal, biz week
• ~B/D incidental to their business, receive no special comp for the advice
• ~Person advise only on US Gov or agency securities
• ~Lawyers, Accountants, Teachers, Engineers

Register with the SEC

Persons with $110 Million or More in AUM

Less than $100M reg - STATE