Answers

1. 1. ANSWER: D. Rationale: The Commission has 45 days from the date of filing an application to either grant registration to a broker-dealer, or institute proceedings to determine whether registration should be denied. The proceedings will include notice as to grounds for denial, as well as an opportunity for a hearing. After such proceedings, the Commission will either grant or deny a broker-dealer’s registration.
2. 2. ANSWER: B. Rationale: Form U4 is the document used to register a person as an agent of a FINRA member broker-dealer firm or a representative of an investment advisory firm. Among the information disclosed in Form U4 are the applicant’s residential, employment, and criminal histories and financial disclosures such as prior bankruptcies.
3. 3. ANSWER: D. Rationale: Anyone who is directly engaged in the investment banking or securities business must register with FINRA, whether full or part-time. Clerical help and nominal officers, such as attorneys (non-supervisory), are exempt.
4. 4. ANSWER: C. Rationale: Employees that fail the exam must wait 30 days after each of their first and second attempts. After their third attempt they will be required to wait 180 days for each attempt thereafter.
5. 5. ANSWER: C. Rationale: FINRA provides licensing relief to registered representatives who are called into or volunteer for active military service. Richard’s license will expire 90 days after completion of active service, unles