Stock Broker Securities Regulations & Compliance

Question 1

Under the Securities Exchange Act of 1934, what is the primary regulatory body overseeing broker-dealers in the US?

Accepted Answer

SEC

Answer

FINRA

Answer

CFTC

Answer

OCC

Question 2

Which rule requires broker-dealers to maintain records of all customer transactions for at least 3 years?

Accepted Answer

Rule 17a-3

Answer

Rule 144

Answer

Rule 10b-5

Answer

Regulation SHO

Question 3

What is the minimum net capital requirement concept that prevents broker-dealers from operating with excessive debt relative to assets?

Accepted Answer

Net capital rule

Answer

Liquidity ratio

Answer

Margin requirement

Answer

Leverage ratio

Question 4

A broker-dealer that holds customer securities and cash must comply with which rule regarding segregation of customer assets?

Accepted Answer

Rule 15c3-3

Answer

Rule 10b-5

Answer

Rule 144A

Answer

Regulation T

Question 5

FINRA Rule 4370 requires member firms to maintain written business continuity plans addressing which scenario?

Accepted Answer

Significant business disruptions

Answer

Market crashes only

Answer

Cyber attacks only

Answer

Regulatory investigations

Question 6

Under Regulation Best Interest (Reg BI), broker-dealers must act in the best interest of which party when making a securities recommendation?

Accepted Answer

The retail customer

Answer

The issuing company

Answer

FINRA

Answer

The broker-dealer firm