Practice Test Geeks(CSCP) Certified Securities Compliance Professional Practice Test
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Securities Laws & Regulations Flashcards

7 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 7 Securities Laws & Regulations flashcards as text

  1. Under the USA PATRIOT Act, broker-dealers are required to establish Customer Identification Programs (CIP). At minimum, what information must be collected for individual customers?

    Answer: Name, date of birth, address, and identification number

    CIP rules require collection of name, date of birth, address, and identification number (e.g., SSN for U.S. persons) for individual customers.

  2. Which provision of the Securities Exchange Act requires any person acquiring more than 5% of a class of registered equity securities to file a Schedule 13D or 13G?

    Answer: Section 13(d)

    Section 13(d) of the Exchange Act requires beneficial owners of more than 5% of a registered equity class to file Schedule 13D (or 13G for passive investors) within 10 days.

  3. Regulation AC (Analyst Certification) requires research analysts to certify that their views expressed in research reports:

    Answer: Accurately reflect their personal views and disclose any compensation tied to the recommendation

    Regulation AC requires analysts to certify that their recommendations accurately reflect their personal views and to disclose whether compensation is related to the specific recommendations.

  4. Under FINRA Rule 4512, customer account records for institutional accounts must be updated at minimum how frequently?

    Answer: Every 36 months

    FINRA Rule 4512 requires broker-dealers to update customer account records for institutional accounts at intervals of not more than 36 months.

  5. The SEC adopted the Market Access Rule (Rule 15c3-5) to require broker-dealers with market access to implement which type of controls?

    Answer: Pre-trade risk management and supervisory controls

    Rule 15c3-5 requires broker-dealers with direct market access to implement pre-trade risk management controls and supervisory procedures to prevent erroneous orders and financial exposure.

  6. Which anti-fraud provision of the Securities Act of 1933 imposes civil liability on sellers of securities for material misstatements or omissions in connection with a sale using any means of interstate commerce?

    Answer: Section 12(a)(2)

    Section 12(a)(2) imposes civil liability on any person who sells securities through a prospectus or oral communication containing a material misstatement or omission.

  7. Under the Securities Investor Protection Act (SIPA), SIPC protects customer accounts at failed broker-dealers up to what dollar amount for cash claims?

    Answer: $250,000

    SIPC protects customer accounts up to $500,000 total, with a sub-limit of $250,000 for cash claims, at failed SIPC-member broker-dealers.