FINRA Communication and Documentation 3

Question 1

FINRA Rule 4511 requires member firms to preserve most broker-dealer records for a minimum of how many years?

Accepted Answer

6 years

Answer

FINRA Rule 4511 generally requires member firms to preserve books and records for a minimum of six years.

Question 2

Which type of record must be kept readily accessible for the first two years of the required retention period under SEC Rule 17a-4?

Accepted Answer

All required records subject to the rule

Answer

SEC Rule 17a-4 requires all records subject to retention be kept in an easily accessible place for the first two years of the required retention period.

Question 3

A customer disputes a trade that occurred four years ago. The firm's records from that period were destroyed two years into retention. Which statement best describes the firm's situation?

Accepted Answer

The firm has violated recordkeeping rules since most records must be kept six years

Answer

Destroying records after two years when the required retention period is six years constitutes a recordkeeping violation under FINRA Rule 4511 and SEC Rule 17a-4.

Question 4

Under FINRA rules, which document must be provided to a customer at or before the completion of a securities transaction?

Accepted Answer

A trade confirmation

Answer

FINRA and SEC rules require that a written trade confirmation be sent to customers at or before completion of each securities transaction.

Question 5

A registered representative sends a text message to a client discussing a recommended trade. Under FINRA recordkeeping rules, this text message:

Accepted Answer

Must be retained as a business communication record

Answer

All business communications, regardless of medium or device, must be captured and retained pursuant to FINRA and SEC recordkeeping requirements.

(FINRA) FINRA Exams Practice Test

(FINRA) FINRA Exams Practice Test

FINRA Communication and Documentation 3