Practice Test Geeks(CSCP) Certified Securities Compliance Professional Practice Test
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CSCP Regulatory Reporting & Disclosures Flashcards

6 cards from real CSCP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 6 CSCP Regulatory Reporting & Disclosures flashcards as text

  1. Under Section 16 of the Securities Exchange Act, which insiders must report their ownership of company equity securities to the SEC?

    Answer: Officers, directors, and shareholders owning more than 10% of a class of equity security

    Section 16 applies to officers, directors, and beneficial owners of more than 10% of any registered class of equity securities, requiring ownership reporting and short-swing profit rules.

  2. An investment adviser must file Form ADV with the SEC to register and provide disclosure to clients. Part 2A of Form ADV is commonly known as the:

    Answer: Brochure

    Form ADV Part 2A is the firm brochure, which investment advisers must deliver to clients and prospective clients, describing services, fees, and conflicts of interest.

  3. Under Sarbanes-Oxley Section 302, corporate officers must certify in each quarterly and annual report that:

    Answer: The financial statements fairly present the financial condition and they are responsible for internal controls

    SOX Section 302 requires the CEO and CFO to personally certify that the financial statements are accurate and that they have designed and evaluated disclosure controls and procedures.

  4. What is the purpose of SEC Schedule 13D?

    Answer: To disclose acquisition of more than 5% beneficial ownership of a public company's equity with intent to influence control

    Schedule 13D must be filed when a person or group acquires beneficial ownership of more than 5% of a class of registered equity securities, particularly with activist intent.

  5. Under FINRA Rule 2232, customer confirmations for corporate and agency debt securities transactions must disclose:

    Answer: The mark-up or mark-down for principal transactions in certain retail transactions

    FINRA Rule 2232 requires broker-dealers to disclose the mark-up or mark-down on customer confirmations for principal transactions in corporate and agency debt securities with retail customers.

  6. A compliance officer discovers that a registered representative failed to timely report a customer complaint that alleged theft. Under FINRA rules, this most likely requires:

    Answer: Immediate amendment of the representative's Form U4 and potential internal investigation

    Complaints alleging theft, forgery, misappropriation, or unauthorized trading must be promptly disclosed on Form U4, and the failure to do so triggers an immediate corrective obligation.