Review Quiz

1. 1. Which of the following can occur only in an Office of Supervisory Jurisdiction?
2. A. creation of sales literature
3. B. solicitation of customer orders
4. C. initial completion of client paperwork
5. D. order execution
6. 2. Swatham Industries has just been put on notice that it has too many personnel (10) who have recently been associated with disciplined firms. Swatham, an employer of 30 people in all, wants to “opt out.” How many employees in question must Swatham fire and how quickly in order to get back below the threshold and avoid having to operate by the taping rule?
7. A. four; 30 days
8. B. four; 60 days
9. C. six; 30 days
10. D. six; 60 days
11. 3. Which of the following records must always be kept in writing at each Office of Supervisory Jurisdiction?
12. A. a list of all prospects contacted by phone within the last 30 days
13. B. written supervisory procedures
14. C. copy of the FTC’s do-not-call list
15. D. copy of every registered representative’s fingerprints
16. 4. A registered principal is conducting his firm’s annual internal inspection at its OSJs. What are his responsibilities with respect to this written report?
17. I. to review customer account records for irregularities and abuses
18. II. to test policies and procedures for safeguarding customer accounts
19. III. to evaluate supervision of customer accounts serviced by branch office managers
20. A. II only
21. B. III only
22. C. I and II
23. D. I, II, and III
24. 5. For representatives whose telemarketing activities are subject to the tape-recording rule, when must the reports reviewing those taped conversations be submitted to FINRA?
25. A. twice a year
26. B. within 30 days of the end of each calendar quarter
27. C. within 30 days of the end of each month being monitored
28. D. at the close of each quarter
29. 6. FINRA may impose sanc