Exercise

Answer true or false

1. 1. True or false. The Exchange Act authorizes the SEC to take punitive action against any broker-dealer that has willfully violated or failed to supervise a violator of securities law and regulations under her employ.
2. 2. True or false. An office that conducts final approval of new customer accounts must be designated an OSJ.
3. 3. True or false. A branch office can be an office responsible for supervising the activities of employees at one or more non-branch locations of the member firm.
4. 4. True or false. An employee’s residence cannot be a non-branch location if half of the orders are made through that location.
5. 5. True or false. A non-branch location must be used more than 30 business days per year for securities businesses in order to be considered a non-branch location.
6. 6. True or false. Supervisory systems must require semiannual compliance meetings with all the principals and the majority of the representatives
7. 7. True or false. If a supervisor uncovers suspicious activity, he can find procedural instructions about how to report it in the written supervisory procedures of a member firm.
8. 8. True or false. Written supervisory procedures must record the names, titles, registration status, and locations of all its supervisory personnel and their responsibilities.
9. 9. True or false. Each OSJ location must keep a copy of the written supervisory procedures and a copy of the FINRA Manual.
10. 10. True or false. Registered principals must conduct internal inspections at every OSJ every three years.
11. 11. True or false. The purpose of compliance meetings is exclusively to ensure that representatives and principals are up to date on changes in the FINRA Manual.
12. 12. True or false. Written supervisory procedures describe how a compliance meeting will take shape and who must attend.

Answers