Hiring and Qualifications Chapter 10-15 Questions

  1. Index Annuities, Fixed Annuities
    Are Not considered securities
  2. Self Regulatory Org's (SRO's)
    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.
  3. Finra
    Established and enforces it own rules, regulations and membership standards.
  4. Finra Processes applications
    within 180 calendar days from the date FINRA receives the completed app.
  5. Membership Interview
    • Receive in writing within 30 days
    • applicant will have 60 days to respond
  6. The regristration of the precedessor B/D will cease to be effective as the regristration of the new B/D
    45 Days after form BD is filled by the successor
  7. Investor Protection and Education
    Has to send out something in writing atleast once a year. such as a public disclosure program

    • - Finra 1-800 #
    • -finra website
    • -Brokercheck info
  8. Statutory Disqualification
    Previous 10 years by the SEC, another SRO, a foreign reg. or foreign equivalent of an SRO
  9. Staturory Disqualificaion - Individual
    • willful misstatements of facts in a app for membership or regristration
    • - felony conviction involvng securities or money within the past 10 yrs
  10. MC - 400

    MC - 400A (Company)
    Filing fee is $1500
  11. Tier 1
    • Most Serious offenders and requires annual exams
    • `annual fee of $1500 to Finra
  12. Tier II
    • for disqualifyng misconduct of less serious nature
    • ~$1000 fee per year
  13. Tier III
    Indiv & Members  without supervision. no special requirements

    ~No Fee
  14. Associated Person Registration
    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)
  15. Maritial Status & Education
    Not required on the U4
  16. U4 Changes
    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 
  17. U5
    Must let the CRD know within 30 days
  18. New employer requesting a copy of the U5
    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
  19. Active Military
    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
  21. EXEMPT from regristration with Finra
    • Clerical
    • not actively engaged in invst bank or securities activities
    • Silent Partners
    • solely executing transactions in municipals sec. or commodities
  22. Foreign Associates - Not a citizen or residents of the US, who conducts all of their securities in areas outside the jurisdiction of the US
    Must register with FINRa but are exempt from having to pass an exam
  23. Fail an exam
    1st - 30 Days 

    2nd - 30 Days

    3rd - 180 Days (6 Months)
  24. Regristered Reps
    • 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)
  25. Series 6
    can only sell closed end funds only as a new issue, once traded in the 2ndary mkt they can't sell them
  26. Series 11/ Sales Assistant
    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
  29. Investment Adiv register 1940

    AUM - REgister
    Register with the SEC

    Persons with $110 Million or More in AUM

    Less than $100M reg - STATE
Card Set
Hiring and Qualifications Chapter 10-15 Questions
10-15 questions