Series 24 — General Securities Principal — All Questions
6 questions
When a registered representative's employment with a member firm ends, the firm must file a Form U5:
- a.Within 30 days, stating the reason for termination truthfully✓
- b.Only if the representative requests it
- c.Within one year of the departure
- d.Within 5 business days and only if the person was terminated for cause
The firm must file Form U5 within 30 days of an associated person's termination, giving a truthful reason for the departure, and must amend it if new information later comes to light. Form U4 is the corresponding registration filing that must be kept current.
Nothing in a member's FINRA contact information changed during the year. What does FINRA Rule 4517 still require after year-end?
- a.No action until something changes
- b.An audited contact report by March 31
- c.A new Form BD within 30 days
- d.A review within 17 business days✓
FINRA Rule 4517 requires each member to review and, if necessary, update its required contact information within 17 business days after the end of each calendar year, even if nothing changed. Changes during the year must be reported no later than 30 days after they occur; Form BD and audited reports are separate obligations.
A branch manager with 10 years as a Series 7 representative is named acting principal on March 1 but has not passed the Series 24. What is the last day she may act as a principal without passing?
- a.August 31, six months later
- b.March 31, 30 days later
- c.There is no deadline while she studies
- d.About June 29✓
FINRA Rule 1210.04 permits a qualified registered representative to function as a principal for 120 calendar days before passing the principal exam. Counting 120 calendar days from March 1 lands on about June 29.
A candidate fails the Series 24 for the third time in a row within 18 months. How long must she wait to test again?
- a.30 calendar days
- b.180 calendar days✓
- c.One year
- d.60 calendar days
FINRA Rule 1210.06 imposes a 30-day wait after a failed attempt, rising to 180 calendar days after three or more failures in succession within a two-year period.
A principal who left the industry wants to keep her Series 24 qualification without retesting if she returns within a few years. What program allows this?
- a.Heightened supervision under Rule 3110
- b.A Rule 19h-1 filing with the SEC
- c.The Maintaining Qualifications Program under Rule 1240✓
- d.The Firm Element training plan
FINRA Rule 1240(c) lets a person who terminates a registration category keep the qualification for up to five years by completing continuing education, if the person was registered for at least a year and was not statutorily disqualified.
Which activity would require a person associated with a member to be registered rather than exempt?
- a.Answering general mail
- b.Filing account documents
- c.Taking customer orders✓
- d.Scheduling client meetings
FINRA Rule 1230 exempts persons whose functions are solely clerical or ministerial, and its supplementary material states that accepting customer orders is not a clerical or ministerial function, so that person must register.