Chapter 5 Practice Questions
1. Which of the following can occur only in an Office of Supervisory Jurisdiction?
A. Creation of sales literature
B. Solicitation of customer orders
C. Initial completion of client paperwork
D. Order execution
2. Which of the following records must always 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 National Do Not Call Registry
D. Copy of every registered representative’s fingerprints
3. A registered principal is conducting his firm’s annual internal inspection at its OSJs. Which of the following is not one of his responsibilities with respect to this written report?
A. To review customer account records for irregularities and abuses
B. To test policies and procedures for safeguarding customer accounts
C. To evaluate supervision of customer accounts serviced by branch office managers
D. To investigate each transmittal of funds from a customer’s account
4. Each FINRA member is required to establish and maintain a system for supervising the activities of each registered representative, registered principal, or other associated person. Which of the following is not a requirement of such a system?
A. If the member has multiple offices, designation of a single Office of Supervisory Jurisdiction
B. Assignment of each registered person to an appropriate supervisor
C. Requiring participation in a compliance interview or meeting at least annually
D. Under certain circumstances, recording telephone conversations between registered persons and customers
5. For representatives whose telemarketing activities are subject to the tape-recording rule, when must the reports reviewing those taped conversations be submitted to FINRA?
A. Twice a year
B. Within 30 days of the end of each calendar quarter
C. Within