Finra Exams

Written Questions

1. Promote investment banking and securities business, standardize principles and practices,

observance of federal and state securities law.

2. FINRA is funded by assessments of member firms’ registered representatives and applicants

and by annual fees.

3. If a broker/dealer is a member, each branch office of the broker/dealer must be registered

with FINRA.

4. Until the investigation or disciplinary action is resolved.

5. Fingerprint rule, require that every person who deals with securities certificates, records or

money must have their fingerprints taken and filed.

Matching Questions

1. Changes to a U-4

2. Violations

3. TRUE

4. FINRA

5. FINRA ASSESSMENTS

a A home address change requires an

amendment to Form U-4.

b are based on annual revenue from overthe-counter securities transactions.

c When an unregistered sales assistant

accepts orders from customers.

d Any changes to any information on a U-

4 require filing an amended form with

the CRD no later than 30 days after the

member becomes aware of the change.

e adopt, administer and enforce the

Conduct Rules and rules to prevent

fraudulent and manipulative practices.

Multiple Choice Questions

1. The only individuals who can receive compensation for the sale of securities, directly or

indirectly (as in Al’s case), are those with a proper ________ ______________.

a. FINRA ASSESSMENTS

b. Client Records

c. Securities License

d. Violations

2. A nonsupervising branch office must be inspected ______________________, and a nonbranch

office must be inspected on a periodic basis, the frequency depending on the nature and

volume of business done by that office.

a. Failure to pay dues

b. An OSJ is defined as

c. At least once every three years

d. No less frequently than annually

3. the FINRA Public Disclosure Program Hotline number, FINRA Website, A statement as to the

availability of an investor brochure that includes information describing the Public Disclosure

Program.

a. Must provide to customers once every calendar year

b. At least once every three years

c. Dues, Assessments, and Other Charges

d. The Background and Character

4. between member firms and members of the public

a. The Conduct Rules apply to a transaction

b. The Background and Character

c. The Conduct Rules apply to all transactions

d. No less frequently than annually

5. The member must also provide a copy to their former employee.

a. TRUE

b. FINRA

c. U-5

d. U-4

True/False Questions

1. Department of Enforcement → FINRA is opposed to the rep leaving a firm to take client files.

True False

2. FINRA FEES paid by a member firm are based on → there is a written contract The Widow of a

representative may continue to receive commissions IF

True False

3. TRUE → The broker/dealer and FINRA must be notified if a registered representative files for

bankruptcy.

True False

4. U-5 → Associated person registered with a member firm resigns or is terminated, the

member must file a U-5 with in 30 days.

True False

5. Foreign representatives are required to register → with the state securities administrator in

each state in which they intended to do business.