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Flashcards in FINRA Registration Deck (39)
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1

The SRO for the issuance and trading of municipal securities, but not enforcement

Municipal Securities Rulemaking Board (MSRB)

2

The two components that comprise FINRA CE requirements

Regulatory Element and Firm Element

3

Form filed that must be filed to apply for FINRA registration

U-4

4

Form that terminates FINRA registration, filed with FINRA within 30 days of termination

U-5

5

Number of days a firm has to provide written notification of the termination of a representative to FINRA

30 days

6

Maintains registration information and disciplinary history of all registered persons

Central Registration Depository (CRD)

7

Officers, management and supervisory personnel of member firms

Registered Principals

8

Waiting period required before a second attempt on a FINRA qualifications examination

30 days

9

Waiting period required after three unsuccessful attempts on a FINRA qualifications examination

6 months

10

Period of time in which updates, such as change of address, must be filed with CRD

30 days

11

Where the public may check background information of registered representatives and broker-dealers

FINRA Broker Check

12

When a registered representative must complete Regulatory Element Training for the first time

Within 120 days of the 2nd anniversary of registration

13

Required frequency for completion of Regulatory Element Training on an ongoing basis

Every three years

14

Status of persons who have not completed Regulatory Element Training as required

CE Inactive

15

Frequency with which a member firm must complete a needs analysis and develop a written training plan for its firm element training program

Annually

16

Loss or prevention of registration resulting from prohibited activities

Statutory disqualification

17

Sanctions that may be imposed by FINRA when member firms or associated persons violate FINRA rules

Censures, fines, suspensions, expulsions, bars from activity or association with member firms, cease and desist orders (no jail sentences)

18

Persons exempt from fingerprinting requirements

Persons not involved in securities sales, persons who do not handle cash or have access to books

19

blue sky laws

A state�s securities laws.

20

BrokerCheck

An online tool that makes background information on broker-dealers and registered representatives publicly available. This includes information on registration, employment, and disciplinary history.

21

CE inactive

Occurs when a registered individual fails to complete his Regulatory Element continuing education training. At this point, the individual cannot conduct any activity that requires registration until he completes the proper training.

22

Central Registration Depository (CRD)

An online database maintained by FINRA containing information about registered representatives, including employment information and disciplinary history.

23

continuing education

Consists of two mandatory programs�Regulatory Element and Firm Element�that must be completed by securities professionals on an ongoing basis.

24

covered persons

Associated persons of a broker-dealer that are required to complete Firm Element continuing education on an annual basis. This includes all registered persons of the firm as well as any other individuals that have direct contact with public customers.

25

Firm Element

A form of continuing education that must be administered by a broker-dealer and completed by all covered persons on an annual basis. Covered persons include all registered individuals of the firm as well as any other person that has direct contact with public customers.

26

FINRA

A self-regulatory organization that is empowered by and accountable to the SEC. Its main responsibility is to regulate US securities firms and their employees in order to protect investors and maintain fairness in the industry.

27

Form U5

A document filed by a firm to notify its self-regulatory organization that an individual�s registration has been terminated and why. Generally, it must be filed within 30 days of termination, though termination with cause requires filing within 10 days.

28

Form U4

A form that is used by an employee of a firm to register with the appropriate regulator. Candidates for registration must include all pertinent background information, such as their educational background, employment history, residential history, and any disciplinary record. Once an individual becomes registered, this information must be maintained and kept current by the individual.

29

Investment Advisers Act of 1940

A federal legislation that defines and regulates investment advisers.

30

investment adviser representative (IAR)

An employee of an investment advisory firm that 1) provides advice, 2) manages client accounts, 3) solicits new business, or 4) supervises other investment adviser reps.