Series 99 Regulatory Compliance & Reporting 2

Question 1

Under FINRA Rule 4511, broker-dealers must preserve books and records for a minimum of how many years?

Accepted Answer

6 years

Answer

FINRA Rule 4511 generally requires broker-dealers to preserve required books and records for a minimum of six years.

Question 2

Which regulatory report must a broker-dealer file to notify FINRA of material changes to its financial or operational condition?

Accepted Answer

FOCUS Report

Answer

The FOCUS (Financial and Operational Combined Uniform Single) Report is used to report a firm's financial and operational condition to FINRA.

Question 3

A firm discovers an associated person has been convicted of a felony. Under FINRA Rule 4530, the firm must report this event within:

Accepted Answer

30 calendar days

Answer

FINRA Rule 4530 requires firms to report certain events, including felony convictions of associated persons, within 30 calendar days of the event.

Question 4

Which of the following is NOT required to be included in a Suspicious Activity Report (SAR) filed with FinCEN?

Accepted Answer

The social security number of the compliance officer

Answer

SARs require details about the suspicious activity, amounts, and subject identity if known, but do not require the SSN of the compliance officer.

Question 5

Under SEC Rule 17a-11, a broker-dealer must notify the SEC when its net capital falls below the minimum required amount within:

Accepted Answer

24 hours

Answer

SEC Rule 17a-11 requires broker-dealers to immediately notify the SEC within 24 hours if their net capital falls below required minimums.

(Series 99) Operations Professional Exam Practice Test