CSCP CSCP Regulatory Reporting & Disclosures 2

Question 1

Under FINRA Rule 2210, what category of communication requires prior principal approval before use or filing?

Accepted Answer

Retail communications

Answer

Institutional communications

Answer

Correspondence

Answer

Internal memos

Question 2

A broker-dealer discovers it has a net capital deficiency. Under SEC Rule 15c3-1, what must the firm do immediately?

Accepted Answer

Cease conducting business and notify the SEC and its designated examining authority

Answer

Notify its clearing firm only

Answer

File a Form BD amendment

Answer

Increase margin requirements for all accounts

Question 3

What is the purpose of SEC Form 8-K?

Accepted Answer

Current reporting of material corporate events on a timely basis

Answer

Annual financial reporting

Answer

Quarterly earnings disclosure

Answer

Registration of new securities

Question 4

Under FINRA's reportable event rules, which of the following requires a firm to file a Disclosure Event on the CRD system via Form U4?

Accepted Answer

A felony charge filed against the registered person

Answer

A parking ticket received by the registered person

Answer

A customer complaint that was resolved in the firm's favor

Answer

A change in the registered person's home address

Question 5

Which SEC regulation governs the disclosure of executive compensation in proxy statements for public companies?

Accepted Answer

Regulation S-K, Item 402

Answer

Regulation S-X

Answer

Regulation D

Answer

Regulation A+

Question 6

FINRA Rule 4511 requires member firms to preserve books and records. What is the minimum retention period for general ledger records?

Accepted Answer

6 years

Answer

2 years

Answer

3 years

Answer

10 years