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after notice by FINRA, how long do members have to pay fees? - 21 days how much notice needs to be give to FINRA before a material change to a firm? - 30 days how long after statutory dq'ing event must you report an associated person to FINRA? - do it promptly, no longer than 30 days what are two ways to be DQ'd by FINRA? - convicted of money/securities misdemeanor, or any felony within past 10 years how often must the firm element of continuing ed be completed? - annually when must regulatory element of continuing ed be completed? - within 120 days of second registration anniversary and every 3 years after what can active military service do? - receive commissions on book, 2 year expiration clock rolled, must reactivate within 90 days of return
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what can active military service not do? - no form U5 necessary, cannot perform as RR, CE requirement suspended what is FINRA rule 3110? - how often inspections must occur how often must OSJ and supervising branches be inspected? - annually how often must non supervising branches be inspected? - every three years what is FINRA rule 3120? - principals must submit to management annually a report detailing system of supervisory controls what two things does FINRA rule 3130 do? - CEO must certify annually that firm has proper supervisory procedures in place; firm must designate chief compliance officer what does FINRA rule 4370 state? - business continuity plans must be disclosed to customers on account opening; firms must designate two associated persons as emergency contacts; changes to contact info must be updated promptly
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what do private securities transactions require? - written notice to member firm and written permission from member? when is sharing in customer accounts permitted? - with principal approval how is sharing in customer accounts divided? - proportionate to contribution what are three ways where RR can borrow money from customer? - customer is family, or lending institution, procedures for loans are set in WSP if you operate at a bank, what must you do? - disclose to customers that operating jurisdiction, rules, etc. are different from the bank what must be done to get continuing commissions? - must have written agreement in place what is retail comunication? - any written communication distributed or made available to more than 25 retail investors within any 30 day calendar period
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what are social media posts subject to? - principal approval and record keeping rules how long to file investment analysis tools with FINRA? - 10 days after first use how long must research reports go back to include price performance or past recs? - 12 months what must research reports include? - price at date of report, disclosure of control relationship, if firm managed any underwriting within past 12 months, if firm makes a market in the subject security what can't analyst compensation be tied to? - specific Ibanking transactions what can analyst compensation be tied to? - general IBanking revenue but must be disclosed
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how long does respondent have to file response to complaint on Code of Procedure? - 25 days after respondents answer to complaint on code of procedure, how long to prehearing conference? - 21 days what happens if respondent does not dispute allegations? - acceptance, waiver, consent letter what is the max fine for a minor rule violation? - $2, when are sanctions effective after written decision? - no sooner than 30 days how long to appeal written decision? - 25 days where is disciplinary info released? - broker check under code of arbitration, when is response required? - 45 days
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simplified arbitration for what amounts? - $50,000 or less awards paid how long after arb decision? - 30 days what is statute of limitation for filing arbitration complaint? - 6 years how many non public arbs in dispute between member firms over $100k - 3 when is public arbitrator involved in securities industry - NEVER customer disputes over $100k, how many arbitrators? - two public and one non public minimum required info to open a new account - name, address, DOB, SSN what are the account information verification rules - 30 days and 36 months what does NOT work as an identity verification - birth certificate
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what is regulation M rule 103 - passive bids can be no higher than highest independent bid unless it reflects a customer limit order; net purchases limited to 30% of MM's average daily trading volume what is regulation M rule 104 - stabilization is permitted for fixed price offerings underwritten on a firm commitment basis what is regulation M rule 105 - short positions established within 5 business days of effective date cannot be covered by stock purchased at the offering price what is regulation A? - companies can raise up to $20 million on Tier 1 and $ million on Tier 2 from accredited and non-accredited investors what is required to inform shareholders of M&A activity - proxies Do new shares from slips and dividends need to be registered? - no what is rule 147 - only state residents can buy for 6 months
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what size does rule 504 deal with? - under or equal to $10 million what does rule 506 deal with? - over $5 million what is the max non-accredited investors under Reg D? - 35 what applies to all control stock sales? - volume limitations under rule 144, what is the hold time on stock? - 6 months how long is form 144 good for? - 90 days when is the latest time to file a form 144? - no later than the first sale date when is a rule 144 filing waived? - if amount to be sold is 5,000 shares or less, or it has a value of $50,000 or less in a 90 day period how long must tender offers be open for? - 20 business days
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what is the firm penalty for insider trading? - up to $25 million fine how long to sue after insider trading violation? - 5 years what is size of mergers to need to notify the FTC? - $92 million what happens before orders are crossed? - must be offered to crowd at one cent above current bid what is a 'block' of stock? - at least 10k shares or $200k or more what is final time to enter a market on close order for NYSE? Nasdaq? - 345; 350 how long does it take to delist a security? - 10 days after filing when is a nasdaq market maker application effective? - upon approval
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how long to enter quotes once approved to be nasdaq market maker? - 5 days how is VWAP calculated? - total dollar value traded divided by the number of shares traded how often for short interest reporting? - reported twice monthly; 15th and last business day of month what is a consolidated audit trail? - time sequence trail of orders from entry to execution what is a T1 trading halt? T2? T3? - news pending; news released; five-minute window when quotes can be entered and trading can begin what is an ECN? - registered ATS that provides trading platform for extended hours trading what is the markup policy? - 5% calculated from inside market price for active competitive markets
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how much does a qualified international buyer need to buy? - $100 million what is the Nasdaq book? - order display and execution system for nasdaq listed securities what do attributable orders show? - firm that entered order whatis MPID NSDQ? - anonymous order on the nasdaq book what is the max order/quote size for nasdaq book - 999, on the open orders can be entered until when? - 2 minutes before market opens What is used to report OTC trades? - TRF, ADF, ORF what are as/of trades? - trades effected outside normal hours but reported the next day
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what is the 1933 act? - registration of securities what is the 1934 act? - registration of persons and exchanges what is Reg T? - determines margin requirements what kind of annuity is not a security - fixed annuity why are variable annuities not suitable for short term investing? - their surrender charges are too high what is a tax deferred way to participate in the equity market - variable annuities compare VAs and mutual funds - same objective; VAs have higher expenses
