Exercise

Match the following approval requirements with each action.

A. Firm must be notified but no approval needed

B. Firm must be notified and written approval must be received

1. _____ An associated person wishes to borrow money from a customer that is a bank. His firm’s written procedures regarding such loans are as lenient as FINRA allows.

2. _____ An associated person wishes to lend money to a long-time friend from college, who is also a customer. Her firm’s written procedures regarding such loans are as lenient as FINRA allows.

3. _____ An associated person’s aunt and uncle offer to lend him the down payment on his first home. His firm’s written procedures regarding such loans are as lenient as FINRA allows.

4. _____ An associated person and her brother wish to open a joint account with a couple hundred dollars, to play the market for fun.

Answer the following questions.

5. Andrea hosts a webinar to 50 prospective retail investors, in which she presents an evaluation of the current securities market and the specific services offered by her firm. To comply with FINRA’s communications reporting requirements, Andrea’s firm must:

A. File the scripted text with FINRA within 10 business days of the presentation

B. Get a principal’s written approval of her script prior to the webinar

C. Have supervisory procedures in place that comply with FINRA’s content standards

D. File the scripted text with FINRA within 10 business days prior to the presentation

6. When making telemarketing calls, a representative of the member firm must comply with all of the following requirements except:

A. Call after 8:00 a.m. in the member firm's time zone

B. Identify oneself and the firm

C. State the purpose of the solicitation

D. Place the respondent on the firm’s do-not-call list if so requested

7. As a registered representative, you would have a responsibility to determine your customer’s suitability in all of