FINRA/SRO regulations

True or false broker dealers are required to keep and maintain a current copy of the FINRA manual in a readily accessible place and to make it available to customers upon request?

True

What are the two main registration categories?

1. registered representative 2. registered principal or supervisory position

When the member firm terminate a registered person or associated person the firm must notify FINRA within how many days of termination?

30 days

What is FINRA's main rule?

A member in the conduct of its business shall observe high standards of commercial honor and just and equitable principles of trade

What is a representative?

Anyone who solicits or conducts business in securities and anyone who trains such persons.

Who is exempt from registration?

Anyone whose functions are solely and exclusively clerical

True or false an individual can register again until approval is given by the SEC?

False a suspended person cannot remain associated with members in any capacity

How big is the scope of FINRA?

It has over 5000 member firms and 653,000 registered representatives

What is the financial industry regulatory authority?

It is a self-regulatory organization whose members include virtually all securities firms doing business in US

Are SRO's Government agencies?

No

Can SRO's set minimum commission rates?

No

Who were investment advisers?

Persons who either write research reports or manage portfolios

Who reviews all disciplinary actions taken by SRO's?

The SEC

What form is used to you apply for registration as an investment advisor?

The U4 form

Which form is used when the person is terminated?

The U5 form

Who signs the forms initially?

The applicant

What is the basic purpose of FINRA?

To standardize practices in the industry establish and enforce fair and equitable rules of securities trading and establish a disciplinary body to enforce rules to protect investors

True or false FINRA requires individuals who conduct a securities business with the public must be registered prior to commencing such activities?

True

True or false accountants or lawyers that give investment advice which is solely incidental to the practice of their profession and do not charge a separate fee for such advise will be exempt from having to register as an investment adviser?

True

Which two regulatory divisions gave rise to the financial industry regulatory authority?

The regulatory divisions of the New York Stock Exchange and the National Association of Securities Dealers