Exercise
Answer the following questions.
1.Which of the following records must be kept in writing at each Office of Supervisory Jurisdiction?
A.A list of all prospects contacted by phone within the last 30 days
B.Written supervisory procedures
C.Copy of the FTC’s do-not-call list
D.Copy of every registered representative’s fingerprints
2.Regarding internal inspections required by FINRA, each member must inspect each OSJ office and any branch office that supervises one or more non-branch locations at least how often?
A.Monthly
B.Quarterly
C.Biannually
D.Annually
3.Which of the following is not true regarding a firm’s supervisory procedures?
A.They must be in writing.
B.Principals must be tested annually on their firm’s supervisory practices.
C.They must be kept on file at every Office of Supervisory Jurisdiction.
D.Firms that get penalized for rule violations often get simultaneously penalized for not keeping accurate written supervisory procedures.
4.A registered principal is conducting his firm’s annual internal inspection at its OSJs. What are his responsibilities with respect to this written report?
I.To review customer account records for irregularities and abuses
II.To test policies and procedures for safeguarding customer accounts
III.To evaluate supervision of customer accounts serviced by branch office managers
A.II only
B.III only
C.I and II
D.I, II, and III
Answers
1. B. A member firm’s written supervisory procedures must be kept at each Office of Supervisory