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Flashcards in Business Conduct Rules Deck (84)
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1

Documents that can confirm identity of a new customer as specified by a firm's Customer Identification Program

Unexpired driver's license or passport

2

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)

3

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

U.S. Treasury Department

4

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

$10,000

5

When required, a Currency Transaction Report must be filed within

15 calendar days

6

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

Bank Secrecy Act

7

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

Four years

8

When municipal advertising must be approved

Prior to use

9

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

$100

10

When written disclosure of municipal control relationships must be made

No later than at the time of confirmation

11

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

Outside business activities

12

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

Private securities transactions

13

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

Prior written notice to the member firm

14

Required for a representative's participation in private securities transactions

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

15

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

16

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

17

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

Guarantee against loss

18

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

19

Joint account that is not subject to account sharing rules

Account with immediate family members

20

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

$100 per year

21

Required when a representative receives a written customer complaint

Inform supervisor or principal

22

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

23

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

Insider Trading and Fraud Enforcement Act of 1988

24

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

Firewall (Information barrier, Chinese Wall)

25

Three stages of money laundering defined by the Bank Secrecy Act

Placement, Layering and Integration

26

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

USA Patriot Act

27

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)

28

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

$100 per year

29

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

Business Continuity Plan

30

FINRA communications category of static social media like Facebook pages

Retail communication subject to approval before use