FIA Regulatory Compliance & Ethics 2

Question 1

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

Accepted Answer

Commercial honor and just and equitable principles of trade

Answer

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

Question 2

The SEC's Regulation S-P primarily governs:

Accepted Answer

Privacy of consumer financial information held by broker-dealers

Answer

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

Question 3

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

Accepted Answer

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

Answer

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

Question 4

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

Accepted Answer

Report the activity through appropriate internal compliance channels

Answer

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

Question 5

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

Accepted Answer

$10,000 in a single day

Answer

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

(FIA) Financial Information Associate Certification Practice Test

(FIA) Financial Information Associate Certification Practice Test

FIA Regulatory Compliance & Ethics 2