chapter 10
When opening a new account, a registered representative should collect all of the following information except?
Prior residential addresses
When a registered representative decides to place a mutual fund advertisement, which of the following is a requirement?
Written approval from a registered principal of the firm.
In order to open a new corporate margin account, all of the following are needed except?
an affidavit of domicile
A broker/dealer would need to file a currency transaction report for which of the following transactions?
single transaction involving $11,000 in currency
Under the uniform gifts to minors act which of the following statements is correct concerning a custodial account?
taxes on earned income from the account are the responsibility of the minor
Which is true regarding UGMA/UTMA accounts?
the donor can be the custodian
A husband, age 45, earns $35,000 per year and wanted to start an IRA for himself and his wife, age 43, who does not work. Which option legally gives them the largest deduction?
$6,000 in each two separate accounts
When a customer adds another owner to their account, the customer relationship summary must be updated within?
30 days
The statue of limitations for fraudulent tactics to induce the purchase or sale of securities is?
5 years from the violation or within 2 years of discovery.
FinCEN requires banks and broker/dealers to adhere to anti-money laundering (AML) rules, including?
A designated independent party to test the procedures.
Which of the following signatures does FINRA require on a new account form?
A principal of the broker/dealer
When are broker/dealers required to file a currency transaction report?
A single currency transaction in excess of $10,000.
After receiving an initial privacy notice, subsequent privacy notices should be provided to customers?
Annually
Which of the following joint accounts is designed specifically for married couples?
Tenancy by the entirety
Who must review institutional communications?
a registered principal
After receiving an initial privacy notice, subsequent privacy notices should be provided to customers?
annually
Participation in seminars, radio or television interviews would be best described as?
public appearances
What is the annual exclusion amount for money given as a gift?
$15,000
An unmarried couple applies for a joint brokerage account and says they wish to open JTWROS account together. What should the registered representative do before starting the application?
Ask them why they wish to open that type of account.
With respect to advisory fees, an investment advisor may not charge the client a fee that would?
Be considered unreasonable by a prudent individual.
In order to comply with FinCEN's anti-money laundering initiative, broker/dealers are required to?
Designate an AML compliance officer?
Business continuity plans are required to address all of the following EXCEPT?
Protecting member profitability
The SEC regulation that requires firms to send privacy and opt-out notices to customers detailing the policies it has in place to protect the security of consumer nonpublic information is called?
Regulation S-P
Which of the following practices is a registered representative permitted in accordance with FINRA conduct rules?
Share in the profits in a customer's account
Which of the following must be filed to establish a corporate margin account?
corporate resolution
All of the following are considered essential facts members must obtain when opening a new account except?
employment history
Which of the following would likely increase a client's risk tolerance?
large inheritance
Which type of retirement account does not require distributions to start at age 72?
roth iRA
what is the timeframe for filling relevant suspicious activity reports/
within 30 days of initial discovery
