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Regulatory Framework and Oversight Flashcards

6 cards from real S-12 practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

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  1. Which of the following is NOT a self-regulatory organization (SRO) in the US securities industry?

    Answer: CFTC

    The CFTC (Commodity Futures Trading Commission) is a federal government agency, not an SRO.

  2. The 'pattern day trader' rule requires a minimum account equity of:

    Answer: $25,000

    FINRA Rule 4210 requires pattern day traders to maintain at least $25,000 in equity in their margin accounts.

  3. Regulation S-P primarily deals with which aspect of broker-dealer compliance?

    Answer: Privacy of consumer financial information

    Regulation S-P requires broker-dealers to adopt privacy policies and safeguard nonpublic personal information of customers.

  4. Under FINRA rules, a registered representative who becomes subject to a statutory disqualification is:

    Answer: Subject to enhanced supervision requirements or potential bar from the industry

    A statutory disqualification triggers a FINRA review process that may result in enhanced supervision, a conditional approval, or bar from the industry.

  5. What is the maximum period for which a FINRA arbitration award can be appealed to federal court?

    Answer: Varies by state law, generally up to 3 months

    The time limit to vacate a FINRA arbitration award in federal court varies by state law but is generally around 3 months from award delivery.

  6. The Bank Secrecy Act (BSA) requires broker-dealers to file a Suspicious Activity Report (SAR) within how many days of detecting a suspicious transaction?

    Answer: 30 days

    The BSA requires broker-dealers to file a SAR within 30 calendar days of detecting a suspicious transaction or activity.

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Sources & references

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  1. nyc-business.nyc.gov — Fees, retake policy, score validity · verified Oct 2026
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