Exercise

Answer true or false

1. 1. True or false. FINRA has the power to suspend or censure its members, but the power to expel is only given to the National Adjudicatory Council.
2. 2. True or false. By accepting an offer of settlement, the individual who is suspected of violating FINRA rules is admitting guilt.
3. 3. True or false. A hearing is only conducted when an accused individual contests the claim.
4. 4. True or false. If a minor rule violation plan letter is accepted by the National Adjudicatory Council, the respondent will be fined no more than $5,000.
5. 5. True or false. The Chief Hearing Officer must gain a majority vote on his written decision by the Hearing Panel.
6. 6. True or false. The National Adjudicatory Council makes the final decision, and the FINRA Board can modify or accept the decision, but it cannot reverse it.
7. 7. True or false. Customers and associated persons have a right to take the dispute to court, as allowed in Form U4.
8. 8. True or false. Arbitration of disputes with customers is mandatory in all cases, regardless of customer requests.
9. 9. True or false. The statute of limitations for arbitration of a claim is six years after the disputed event.
10. 10. True or false. At least half of the arbitrators involved in a customer claim must be from outside the industry.
11. 11. True or false. Claims that involve customers have the majority of arbitrators as public arbitrators.
12. 12. True or false. When a decision is issued, arbitrators must include a summary rationale for their decision.
13. 13. True or false. Mediation may be required as an alternative option, rather than arbitration, if the dispute is not deemed serious enough for arbitration
14. 14. True or false. The mediator at the end of negotiations makes a final decision, but the parties can disregard this decision and take the dispute to arbitration.
15. 15. True or false. Mediation is a nonbin