Practice Test Geeks(FIA) Financial Information Associate Certification Practice Test
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Regulatory Compliance & Ethics Flashcards

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

Read the first 7 Regulatory Compliance & Ethics flashcards as text

  1. Under FINRA Rule 2010, a registered representative who submits falsified customer account documents is violating the standard of:

    Answer: Commercial honor and just and equitable principles of trade

    FINRA Rule 2010 requires members to observe high standards of commercial honor and just and equitable principles of trade, which falsifying documents directly violates.

  2. The SEC's Regulation S-P primarily governs:

    Answer: Privacy of consumer financial information held by broker-dealers

    Regulation S-P requires broker-dealers and investment advisers to protect the privacy of nonpublic personal information of their customers.

  3. Which of the following best describes a 'know your customer' (KYC) obligation under FINRA Rule 2090?

    Answer: Using reasonable diligence to know the essential facts about every customer and account

    FINRA Rule 2090 requires firms to use reasonable diligence to know the essential facts about each customer necessary to service the account effectively.

  4. A financial professional learns that a colleague is front-running customer orders. The ethical obligation under industry standards is to:

    Answer: Report the activity through appropriate internal compliance channels

    Industry ethics require reporting observed misconduct through proper internal compliance channels to protect clients and the integrity of the market.

  5. Under the Bank Secrecy Act (BSA), a Currency Transaction Report (CTR) must be filed for cash transactions exceeding:

    Answer: $10,000 in a single day

    The BSA requires financial institutions to file a CTR for any cash transaction exceeding $10,000 in a single business day.

  6. The concept of 'churning' in securities accounts refers to:

    Answer: Excessive trading in a customer's account primarily to generate commissions

    Churning is excessive trading in a customer's account that primarily benefits the broker through commissions rather than the customer.

  7. Which regulatory body is primarily responsible for overseeing the conduct of broker-dealers and their registered representatives in the US?

    Answer: The Financial Industry Regulatory Authority (FINRA)

    FINRA is the self-regulatory organization (SRO) responsible for overseeing broker-dealers and their registered representatives in the United States.

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