Unit 10 Exam

Sennacherib Partners, a broker-dealer partnership, maintains its records to meet or exceed regulatory requirements. Once a year, the partners gather for the annual partnership meeting. In order to meet the regulatory requirement, how long must Sennacherib maintain the minutes from the most recent partnership meeting?

For the life of the partnership

In which circumstances may a FINRA member firm conduct securities business with a nonmember broker-dealer?

If the nonmember broker dealer is a foreign firm and properly registered in their home jurisdiction

Appeals on FINRA decisions first go to an internal group called the

National Adjudicatory Council. NAC decisions may be appealed up to the SEC, and then the courts.

Deanfield and Chatham Investments, LLC has recently registered as a broker-dealer with the SEC and been accepted as a FINRA member firm. They update their website to prominently display this fact at the top of their site and include large images of both organizations' logos. This is

Not allowed because it is a misrepresentation

The MSRB has no authority over

municipal governments

Darrell has an individual account at Seacoast Securities, Inc., an SIPC firm that holds $300,000 in cash; $100,000 in various stock; and $100,000 in the Seacoast Money Market Fund. If Seacoast Securities fails how much coverage does Darrell have?

$450,000 (Reasoning: SIPC covers securities and cash at a broker-dealer up to a maximum of $500,000, but no more than $250,000 in cash. A money market fund is a type of security. Darrell is covered for $200,000 in securities and $250,000 in cash for a total of $450,000.)

FINRA is the primary regulator in the United States for

Broker-dealers & registered representatives

Which of these is not a division of the Treasury Department with some level of oversight for the securities industry? A. Financial Crimes Enforcement Network B. Financial Industry Regulatory Authority C. IRS D. Office of the Comptroller of the Currency

Financial Industry Regulatory Authority

Which of these would not be fully covered by SIPC insurance? A) Holding $300,000 in a money market and $200,000 in mutual funds B) Holding $250,000 in cash and $250,000 in the Windmill Commodity ETF C) Holding $250,000 in index funds, $200,000 in Treasury bonds, and $50,000 in gold D) Holding $400,000 in junk bonds and $100,000 in cash

Holding $250,000 in index funds, $200,000 in Treasury bonds, and $50,000 in gold

MSRB rules apply to all of the following except A) municipalities. B) municipal dealers. C) investment bankers. D) FINRA member firms performing trades with municipal bonds.

municipalities.

The SEC has regulatory authority over all of these entities except A) exchanges. B) FINRA. C) Securities Information Providers (SIPs). D) municipalities.

municipalities.

Stock ledgers, a record of stocks owned by the firm, are maintained for at least

six years

All of these enforce MSRB rules except A) FINRA. B) the Securities Exchange Commission. C) the MSRB Enforcement Department. D) the Federal Reserve Board.

the MSRB Enforcement Department.

Bob's Discount Brokerage applied for FINRA membership and was denied. Bob wants to appeal this decision. The first appeal goes to

the NAC (National Adjudicatory Council)

The Securities Exchange Commission was authorized by

the Securities Exchange Act of 1934

All of the following are records that are kept for the life of the firm except A) articles of incorporation. B) trade blotters. C) board meeting minutes. D) stock book.

trade blotters.

The Hoffman Equipment Company of Anaheim, California is preparing to sell shares to the public in an IPO. They plan to sell exclusively to residents of the state of California and use the proceeds to build a new showroom in Long Beach, California. This offer would need to be registered with

The administrator of the state

The Securities Investors Protection Corporation protects investors from the financial failure of

broker-dealers

Under the Uniform Securities Act of 1956, who is responsible for enforcement of state securities regulations?

The administrator

Which of the following agencies collects and disseminates intelligence on financial transactions?

The Financial Crimes Enforcement Network

FinCEN is a bureau of what department within the federal government?

Treasury

An exchange has some degree of regulatory authority over all of the following except A) floor traders. B) dealers in the third market. C) exchange members. D) designated market makers.

dealers in the third market.