Series 99 Regulatory Compliance & Reporting 3

Question 1

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

Accepted Answer

$10,000

Answer

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

Question 2

Which SEC rule establishes the Customer Protection Rule requiring broker-dealers to maintain customer funds and securities separately from firm assets?

Accepted Answer

Rule 15c3-3

Answer

SEC Rule 15c3-3, the Customer Protection Rule, requires broker-dealers to safeguard customer funds and securities by keeping them separate from the firm's own assets.

Question 3

When must a broker-dealer file an amended Form BD to update registration information?

Accepted Answer

Within 15 days of the change

Answer

FINRA and SEC rules require broker-dealers to file an amended Form BD within 30 days—but FINRA specifically requires updates within 30 days; however the standard is 30 days for most changes and promptly for certain material changes. The standard answer for most regulatory changes is 30 days.

Question 4

Under FINRA Rule 4370, firms must establish and maintain a Business Continuity Plan (BCP). How often must the BCP be reviewed?

Accepted Answer

Annually

Answer

FINRA Rule 4370 requires firms to review their BCPs at least annually and update them as necessary to ensure they remain current.

Question 5

A registered representative submits a trade that creates a position violating Regulation T margin requirements. Operations must issue a margin call within:

Accepted Answer

1 business day

Answer

When a Regulation T margin call is triggered, the firm must issue the call by the close of the next business day following the trade.

(Series 99) Operations Professional Exam Practice Test

(Series 99) Operations Professional Exam Practice Test

Series 99 Regulatory Compliance & Reporting 3