Series 7 Chapter 12
What are Business Continuity plans? AKA BCP's?
A guide for business's on what to do when there is a significant business disruption.
When must material information be filed with FINRA's advertising regulation department?
10 days before use this is for FIRST time uses.But really means no later than 10 days AFTER first use.
how long must firms keep Customer exception reports?
18 months.
What must be kept for three years beyond an employee termination?
U4 Forms.
Which form of suitability analysis may a representative forego when working with a large institutional client?
Client Specific
What is Finra Rule 2210?
Communication with the public rule. Which is any written communication that is distributed or made available to more than 25 retail investors within any 30 calendar-day period.
When must you disclose the BCP? (Business continuity plan)
During account openings posted on websites and mailed upon request. These changes are made due to natural disasters, major sudden company changes.
How long are CTR's and SAR's kept for?
Five years.
How long are customer complaint records kept for?
Four years.
For record keeping what do the files need to contain in retail communications?
Must be held for three years and most recent 2 years readily available. And. . 1) Name of person 2) Initials and date of approving principal 3)Source of any statistical information.
How long must firms hold records for closed accounts?
Six ears
How long is Municipal complaints and political contribution logs kept for?
Six years
What is the Telephone Consumer Protection Act of 1991?
This is the act that protects consumers form aggressive telephone COLD CALLERS. 1)Unsolicited calls can only be made between 8 AM and 9 PM and the caller must identify themselves and their firms telephone number. DO NOT CALL LIST clients are honored for five years. Only pertains to people who do not have a relationship.
What is Quantitative suitability?
This is the analysis that requires you have a reasonable basis to believe that a series of recommended transactions, even if suitable, are not excessive.Usually cannot have high turnover rates, cost-equity ratio being unreasonable, and use of in-and-out trading generally is a violation.
FINRA Rule 2111 requires that each recommendation to a retail customer must satisfy how many suitability analyses?
Three 1) Reasonable base 2)Customer-specific 3) Quantitative Suitability Standards.
How long must you keep security trade confirms and other financial statements for customer accounts?
Three years.
What is regulation S-P?
rules b/d's must adhere to safeguard customer information and not share it with parties without consent.
