SIE Module 12 Test Bank

1. In addition to federal securities laws, each state has its own securities laws intended to protect the public from fraud. These state securities laws are often referred to as:

2. Which one of the following statements is correct regarding non-registered persons?

3. A non-registered person can contact a potential customer to:

4. A registered principal or registered representative must retake a qualifying exam if his or her registration has been revoked or terminated for:

5. Which one of the following actions can only be performed by a person registered with FINRA?

6. Which one of the following is required to be a member of FINRA?

7. Tommy is associated with a FINRA member. His only job responsibility is facilitating transactions involving publicly traded securities on the New York Stock Exchange. Is Tommy required to register with FINRA?

8. Annual continuing education training provided by member firms is known as:

9. Which one of the following statements is correct regarding FINRA background checks?

10. All of the following represent requirements for a partner, director, officer or employee to be EXEMPT from fingerprinting requirements, EXCEPT:

11. If a brokerage firm wants to hire an individual subject to statutory disqualification, FINRA requires the member firm to complete a:

12. If a FINRA member has filed for bankruptcy within the last 10 years, this could lead to:

13. Which one of the following is part of the FINRA continuing education requirements?

14. The Regulatory Element of FINRA’s CE program requires all registered individuals to complete a computer-based training session within:

15. Roscoe is an investment adviser living and practicing in California. He currently has assets under management of $105,000,000. Which one of the following best represents Jorge’s registration requirements?

16. An Investment Adviser firm wishes to terminate its registration with the SEC. Which one of the following forms should be completed and submitted to fulfill this objective?

17. Which one of the following forms is filed by a broker/dealer to terminate an agent’s registration?

18. Form U4 is the:

19. Which one of the following statements is correct regarding Form U4?

20. Juan is an investment adviser representative. He just resigned from ABC Investment Adviser Firm to take a job at XYZ Investment Adviser Firm. Which one of the following represents the filing responsibilities related to this job change?

21. All of the following items must be reported on Form U4, EXCEPT:

22. For filing erroneous U4 or U5 forms, FINRA’s Sanction Guidelines recommends as penalty a permanent bar of an individual:

23. Under FINRA Rule 4513, written customer complaints must be preserved for a period of at least:

24. Which one of the following constitutes a reportable customer complaint?

25. FINRA has two proceedings for handling customer complaints – formal and informal. If a customer decides to pursue informal proceedings, the complaint can be resolved according to FINRA’s:

26. Which one of the following represents a type of complaint resolution that involves an independent third party who provides a nonbinding resolution to the matter?

27. Tara, a registered representative, received a customer complaint. Her first course of action should be to:

28. Ronnie, who lives in California, opens an account with a brokerage firm in Texas. This represents his only account with the firm. He receives an electronic transfer of large amounts of low-priced, non-exchange-listed securities and deposits the securities into the account. This action represents:

29. Red flags are most easily monitored through the use of:

30. Which one of the following statements is correct regarding outside business activities?

31. All of the following would be considered outside business activities, EXCEPT:

32. Which one of the following does FINRA Rule 3270 (Outside Business Activities of Registered Person) require a member firm to consider before approving an outside business activity?

33. Caridad is an agent of a broker/dealer. Unbeknownst to the broker/dealer, she is selling interests in a limited partnership to existing clients of the broker/dealer. Caridad receives a commission on the sales of the limited partnership interests and on the sales of other securities in the clients’ accounts. Caridad is violating the Uniform Securities Act because she is engaging in:

34. If a registered representative makes a contribution to an elected local or state government official or a candidate in excess of a de minimis amount:

35. FINRA Rule 2030 (Engaging in Distribution and Solicitation Activities with Government Entities) would apply to:

36. Under FINRA, what is generally the maximum value of gifts in a calendar year that can be given to a customer?

37. When must political contributions be reported to the Municipal Securities Rulemaking Board?

38. Some open-end investment companies provide reimbursement for travel and other expenses associated with attending conferences as inducement to sell their product. Which one of the following represents a requirement that must be satisfied for the investment companies to provide this incentive?

39. Which one of the following must be reported on Form U4?

40. Bobby, a CFP® professional, CPA, and Registered Investment Advisor, manages $30,000,000 in assets in the state of Wyoming. His largest client, Tammy, sends a letter to him accusing him of breaching his fiduciary duty because Bobby purchased a social networking stock IPO in Tammy’s account. If Tammy chooses to escalate her complaint, which institution has ultimate authority over Bobby’s potential breach of fiduciary duty?