Exam Alert: 30-second trade reporting requirement is in effect

Effective November 10, 2010, FINRA’s prior 90-second trade reporting requirement has been replaced with a Continue reading

Effective November 10, 2010, FINRA’s prior 90-second trade reporting requirement has been replaced with a 30-second trade reporting requirement.  This applies to OTC trades made in equity securities during the hours that FINRA trade reporting facilities are open (generally 8 AM to 8 PM Eastern Time). This change also affects trade cancellations that were subject to 90-second reporting.  Note that bonds are typically have a 15-minute trade reporting requirement.
Relevant to the Series 7, Series 62 and the Series 24 General Securities Principal exam.

http://www.finra.org/Industry/Regulation/Notices/2010/P121342

Exam Alert: Underwriters must report indications of interest and final allocations to issuers

Effective May 27, 2011, during a new issue, the underwriting manager must report indications of interest and aggregate demand for the security to Continue reading

Effective May 27, 2011, during a new issue, the underwriting manager must report indications of interest and aggregate demand for the security to the issuer.  After the settlement date of the new issue, a report of the final allocation of shares to institutional investors must be provided to the issuer, along with the aggregate sales to retail investors.  This change was made to increase transparency in the book-building process. Relevant to FINRA Series 7, Series 24, Series 62 and the Series 79 Investment Banking Exam.

http://www.finra.org/Industry/Regulation/Notices/2010/P122491

Exam Alert: NASAA develops list of “Best Practices”

A 2010 NASAA review of broker-dealers found that the three most common compliance problem areas were failure to follow supervisory policy, Continue reading

A 2010 NASAA review of broker-dealers found that the three most common compliance problem areas were failure to follow supervisory policy, advertising and sales literature, and suitability issues. NASAA developed a list of ten best practices and released them in October of 2010.  The recommendations focus on suitability, exception reports, supervisory procedures, and communications.  Relevant to Series 6, Series 7, Series 63, Series 65, Series 66, Series 24, Series 26, Series 62 and Series 79. The list can be found here: http://www.nasaa.org/NASAA_Newsroom/Current_NASAA_Headlines/13382.cfm.

Exam Alert: “Buy-in” notices must be rejected in writing by 6 PM, EST

Effective December 15, if a seller does not accept a “buy-in” notice, it must send a signed, written rejection to the buyer no later than 6:00 PM Eastern Continue reading

Effective December 15, if a seller does not accept a “buy-in” notice, the seller must send a signed, written rejection to the buyer no later than 6:00 PM, Eastern Standard Time.  If no rejection is sent, the notice is accepted.  A “buy-in” notice is sent to a seller when the seller fails to deliver securities.  It allows the buyer to repurchase the securities, with the seller making up any price difference. Relevant to: Series 7, Series 24, Series 62.

http://www.finra.org/Industry/Regulation/Notices/2010/P122271

Exam Alert: Outside business activities require prior notice

Effective December 15, 2010, registered persons must provide prior written notice to their member firms before engaging in Continue reading

Effective December 15, 2010, registered persons must provide prior written notice to their member firms before engaging in outside business activities.  The previous rule only required registered persons to provide prompt written notice.  The new rule also requires that firms review the proposed activities.  For registered persons who were engaged in outside business activities as of December 15, 2010, firms have until June 15, 2011 to review such activities. Relevant to: Series 7, Series 6, Series 24, Series 26, Series 79, Series 62.

http://www.finra.org/Industry/Regulation/Notices/2010/P122271

Series 7 Crossword Puzzle Contest

We know how much you love reading our Pass the 7 book but take a break and try your hand at our Series 7 crossword puzzle! You might even win Continue reading

We know how much you love reading our Pass the 7 book but take a break and try your hand at our Series 7 crossword puzzle! You might even win a Starbucks® gift card.

All you have to do is download the crossword puzzle here, fill it out, and send it to us. If all of your answers are correct, you’ll be entered into a drawing for a Starbucks® gift card!

Mail your completed Series 7 crossword puzzle to:
6750 SW Franklin St.
Portland, OR 97223
Att: Solomon Exam Prep Crossword Contest

Or email your answers to info@solomonexamprep.com.

All entries must be received by Oct. 1, 2010.

Good luck!

Big Changes Ahead for the Series 7 Exam

At the FINRA annual conference in May in Baltimore, FINRA announced that it is in what sounds like the final stages of a substantial revision to the Series 7 Continue reading

At the FINRA annual conference in May in Baltimore, FINRA announced that it is in what sounds like the final stages of a substantial revision to the Series 7 General Securities Representative Exam. The new Series 7 exam will test five major job functions, down from the current seven. Within the five major job functions, the revised Series 7 exam will test 29 tasks associated with the major job functions of a registered representative. According to the FINRA, the new Series 7 exam will contain “200+ knowledge statements” associated with the five functions and the 29 tasks.

The five job functions of the new Series 7 General Securities Representative Exam will be:

“Seeks business for the broker-dealer through customers and potential customers”

“Evaluates customers’ financial status, financial needs and risk tolerance, and helps them identify their investment objectives”

“Opens accounts, transfers assets and maintains appropriate account records”

“Provides customers with information on investments and makes suitable recommendations”

“Obtains and verifies customer’s purchase and sales instructions, enters orders and follows up”

These five functions are the same or substantially similar to ones on the current Series 7 exam. A notable change from the existing Series 7 exam is the addition of evaluating customer “risk tolerance.”

Removed or merged into other categories are:

“Explains the organization, participants, and functions of various securities markets and the principal factors that affect them”

“Monitors the customer’s portfolio and makes recommendations consistent with changes in economic and financial conditions as well as the customer’s needs and objectives”

The revised Series 7 will still be 250 questions long with an additional ten non-scored “pre-test” questions that will be randomly distributed on the exam. The revised Series 7 exam will remain six hours in length, broken into two three-hour segments.

Although no specific timeline was provided, the FINRA announcement said that the new Series 7 content outline would be submitted to the SEC first and then once the SEC approves the proposed changes, the new content outline would be posted on the FINRA web site and then some time after that the test would be launched at the testing centers.

Solomon Exam Prep Publishes First Series 7 Training App for the Blackberry

Do you need to take the FINRA Series 7 exam? Do you have limited time to study? Do you own a Blackberry? If you answered yes to these questions, Continue reading

Do you need to take the FINRA Series 7 exam? Do you have limited time to study? Do you own a Blackberry? If you answered yes to these questions, then you’ve come to the right place!

Officially known as the Qualification Examination for General Securities Registered Representatives, the Series 7 exam qualifies a candidate to sell all types of securities. The examination tests candidates’ knowledge of the critical functions of the General Securities Registered Representative. The Series 7 exam was developed and is administered by the Financial Industry Regulatory Authority FINRA.

The Solomon Exam Prep Series 7 BlackBerry® app offers 350 practice questions from the same topic categories the seven critical functions of a registered representative and in the same proportion as the actual Series 7 exam.

Each practice exam on the Solomon Exam Prep Series 7 BlackBerry app is 50 questions long. Each question is followed by an immediate answer and explanation, as well as an opportunity to review the question. Users may pause at any time and resume at the same point later on. At the end of each 50 question practice test, users receive a score and a pass/fail grade.

To order, please go to Blackberry App World here: