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Flashcards in Business Conduct Rules Deck (84)
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Documents that can confirm identity of a new customer as specified by a firm's Customer Identification Program

Unexpired driver's license or passport


The organization that maintains a list of known or suspected terrorists that must be checked when a firm verifies a new customer's identity

US Treasury (Office of Foreign Assets Control -- OFAC)


When required, a currency transaction report (CTR) is filed with

U.S. Treasury Department


The cash amount that triggers the filing of a currency transaction report



When required, a Currency Transaction Report must be filed within

15 calendar days


The Act that requires the filing of Currency Transaction Reports by financial institutions

Bank Secrecy Act


How long municipal advertising by broker-dealers must be kept on file

Four years


When municipal advertising must be approved

Prior to use


Maximum value of gifts permitted from municipal dealers in one year to persons other than employees



When written disclosure of municipal control relationships must be made

No later than at the time of confirmation


Business activities outside a representative's relationship with a member firm

Outside business activities


Transactions in securities that are not sponsored by a representative's member firm. Also called selling away.

Private securities transactions


Required from a representative who wishes to participate in outside business activities

Prior written notice to the member firm


Required for a representative's participation in private securities transactions

Written notice to firm; approval of firm required if rep is to be compensated


Required by member firms for their representatives that wish to open a brokerage account with another member firm

Prior written permission to employee and duplicate confirmations and account statements if requested


Associated persons of member firms that open brokerage accounts with other firms must

Get prior permission from the employer firm Provide written notice of their employment with another firm to the firm opening the account


Prohibited transaction in which representatives ensure customers that securities transactions will not lose money

Guarantee against loss


Three requirements for sharing in customer accounts

Written permission from the member firm; written authorization from the customer; sharing in direct proportion to financial contributions made to the account


Joint account that is not subject to account sharing rules

Account with immediate family members


Limit on gifts and gratuities given by a firm or its associated persons to employees or representatives of other firms

$100 per year


Required when a representative receives a written customer complaint

Inform supervisor or principal


Situations where continuing commissions are permitted if a written contract is in place

Compensation upon retirement for business placed while employed; payment to beneficiaries upon the death of the registered representative


Amends the Act of 1934 and specifies penalties for the use of non-public material information

Insider Trading and Fraud Enforcement Act of 1988


The barrier that must be established between departments to prevent a free flow of sensitive information

Firewall (Information barrier, Chinese Wall)


Three stages of money laundering defined by the Bank Secrecy Act

Placement, Layering and Integration


Regulation that required broker-dealers to establish written anti-money laundering programs and designate an anti-money laundering compliance officer

USA Patriot Act


Civil penalties for violation of the Insider Trading and Securities Fraud Enforcement Act of 1988

300% of profits made or losses avoided (i.e. treble damages)


Limit on gifts and gratuities given by a firm or its associated persons to employees or representatives of other firms.

$100 per year


Type of plans member firms must maintain to deal with significant business disruptions

Business Continuity Plan


FINRA communications category of static social media like Facebook pages

Retail communication subject to approval before use