FREE AND STUDY GAMES ABOUT SERIES 26 EXAM

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FREE AND STUDY GAMES ABOUT SERIES 26 EXAM

QUESTIONS

Actual Qs and Ans Expert-Verified Explanation

This Exam contains:

-Guarantee passing score -39 Questions and Answers -format set of multiple-choice -Expert-Verified Explanation

Question 1: What are the requirements when registering an associated person?

Answer:

-Sponsored by member firm -Principal must verify employment for past 3 years -Firm checks background to verify Form U4 Question 2: What is the difference between Forms MC-400 and MC-400A, and what is the filing fee?

Answer:

MC-400 is for individuals, MC-400A is for firms, filing fee is $1500

Question 3: Persons Exempt from FINRA Registration

Answer:

-Exclusively clerical duties -Not actively engaged in investment banking/securities activities -Have functions only relating to executing transactions in municipal securities/commodities

Question 4: What form is filed when a member is terminated, and when does it take place?

Answer:

Form BD-W - filed electronically

• Will not take into effect until 30 days after receipt

Question 5: What form would you still have to file if you wanted a SD person to be employed in a clerical position?

Answer:

MC-400

Question 6: Who renders the decision of allowing a SD person to be associated with a member, and who reviews and approves that?

Answer:

Decision rendered by Department of Member Regulation, reviewed and approved by the NAC Question 7: A foreign advisor with no place of business in the United States who has fewer than ______ U.S. based clients and an AUM of less than _____ million is exempt from the definition of an investment adviser.

Answer:

15 clients, 25 million Question 8: Investor Protection and Education - each member firm must annually provide the

following:

Answer:

-Statement as to availability of investor brochure that includes info describing Public Disclosure Program

-FINRA Public Disclosure Program Hotline -FINRA website -BrokerCheck contact information Question 9: It is unlawful to use the term investment counsel unless:

Answer:

The adviser's principal business consists of acting as investment adviser, and a substantial part of their business consists of rendering investment supervisory services

Question 10: What is the taping rule?

Answer:

When a member hires a registered rep previously associated with a disciplined firm - may be required to establish procedures to monitor telemarketing activities - 60 days to put them in place, maintain for 3 years and send quarterly reports to FINRA Question 11: When is FINRA required to inspect a newly registered broker/dealer?

Answer:

Conducted within six months of member's registration to determine if they are operating in conformity with financial rules Question 12: How long does one have to amend their U4 of any changes? What if it involves SD?

Answer:

-30 days after member becomes aware of change -10 business days if it involves SD Question 13: What would a member of AP have to do if they are seeking an Order of Expungement from the Web CRD?

Answer:

Obtain an order from a court of competent jurisdiction, directing such expungement or confirming arbitration award containing expungement relief Question 14: Statutory Disqualification - Firm will be denied membership if application or any

AP:

Answer:

-Has been expelled/suspended by another SRO -Is subject to SEC order denying/suspending/revoking registration -Filed false or misleading application

Question 15: What can a licensed Series 26 principal do and not do?

Answer:

Can - supervise solicitation of investment company products and variable contracts sold by prospectus, review and approve advertising Cannot - supervise underwriting, trading, or market-making activities

Question 16: Define parking the license.

Answer:

Trying to keep license active during period when it is not being used - prohibited by FINRA Question 17: What is an executive representative and what position must they hold?

Answer:

Votes and acts for the member on FINRA matters - must be member of senior management or principal Question 18: What form is filed for FINRA membership? How long does it take to process?What fees are associated?

Answer:

Form BD -

• will be processed within 180 calendar days

• Will pay membership fee AND separate annual assessment based on gross income generated

Question 19: If registration for a SD person is approved, FINRA examiners will conduct periodic examinations to ensure compliance. FINRA classifies individuals and members into 3 tiers with corresponding examination requirements. What are they?

Answer:

1. Tier I: most serious offenders, requires annual examination

• Tier II: Disqualifying misconduct, conducted during FINRA's routine examinations of member firm

3. Tier II: no special supervision

Question 20: The following advisers must register with the SEC (federal level) according to the

IA Act of 1940:

Answer:

-Advisers with $110 mil or more in AUM -Advisers managing an investment company registered under the IA Act of 1940

Question 21: How long does one have to submit a Form U5?

Answer:

30 upon termination