Wiley Series 24 Securities Licensing Exam Review 2019 + Test Bank (eBook)

The General Securities Principal Examination

Wiley (Autor)

eBook Download: EPUB

2018 | 1. Auflage
528 Seiten
Wiley (Verlag)
978-1-119-55402-8 (ISBN)

Infos

The go-to guide to acing the Series 24 Exam!
Passing the General Securities Principal Qualification Examination (Series 24) qualifies an individual to act as a principal of a general securities broker-dealer and to supervise the firm and its agents. The exam covers the supervision of such areas as investment banking, underwriting, and research practices; trading and market-making; brokerage office operations; and sales practices and agents, as well as compliance with financial responsibility rules. Candidates must have passed the Series 62 or Series 7 prior to taking the Series 24 Exam.
Created by the experts at The Securities Institute of America, Inc., Wiley Series 24 Exam Review 2019 arms you with everything you need to pass this intensive 150-question test. Designed to help you build and fine-tune your knowledge of all areas covered in the exam and to guarantee that you're prepared mentally and strategically to take the test, it provides:

• Dozens of examples
• Assorted practice questions for each subject area covered in the exam
• Priceless test-taking tips and strategies
• Helpful hints on how to study for the test, manage stress, and stay focused

Wiley Series 24 Exam Review 2019 is your ticket to passing the Series 24 test on the first try-with flying colors!

Textauszug

CHAPTER 1
Brokerage Office Procedures

Introduction

Guidelines for the practices that a brokerage firm uses to conduct the operation of its daily business are regulated by industry, state, and federal regulators. These guidelines are the foundation for the way that the firm handles all business, from hiring a new agent to executing a customer’s order. All Series 24 candidates must have a full understanding of a brokerage firm’s operations and procedures to successfully complete the exam.

Hiring New Employees

A registered principal of a firm will be the individual who interviews and screens potential new employees. The principal will be required to make a thorough investigation into the candidate’s professional and personal backgrounds. With few exceptions, other than clerical personnel, all new employees will be required to become registered as an associated person with the firm. The new employee will begin the registration process by filling out and submitting a Uniform Application for Securities Industry Registration, also known as Form U4. Form U4 is used to collect the applicant’s personal and professional history, including:

• 10-year employment history
• Five-year resident history
• Legal name and any aliases used
• Any legal or regulatory actions

The principal of the firm is required to verify the employment information for the last three years and must attest to the character of the applicant by signing Form U4 prior to its submission to FINRA. All U4 forms will be sent to the Central Registration Depository (CRD) along with a fingerprint card for processing and recording. The employing firm must maintain written procedures to verify the accuracy of the information on the new hire's U4 form. A comprehensive review of the information must take place within 30 days of the form being submitted to FINRA. Fingerprint cards may be submitted in hard copy or electronically. The candidate's fingerprints will be submitted to the FBI for review. If after three good faith attempts to submit fingerprints the FBI determines that the fingerprints are ineligible or cannot be read the candidate will not be asked to submit a fourth set of fingerprints and the FBI will conduct a name check to search the candidate's history. Any applicant who has answered yes to any of the questions on the form regarding his or her background must give a detailed explanation in the DRP pages attached to the form. The applicant is not required to provide information regarding:

• Marital status
• Educational background
• Income or net worth

Information regarding the employee’s finances is disclosed on Form U4 if the associated person has ever declared bankruptcy and if the employee has any unsatisfied judgements or liens. Any development that would cause an answer on the associated person’s U4 to change requires that the member update the U4 within 30 days of when the member becomes informed of the event. In the case of an event that could cause the individual to become statutorily disqualified, such as a felony conviction or misdemeanor involving cash or securities, the member must update the associated person’s U4 within 10 business days of learning of the event. Additionally, broker dealers are required to perform background checks on its employees every 5 years to ensure that no judgements, liens or disclosable events have gone unreported by the registered person. Registered persons who fail to disclose any unsatisfied judgements or liens are subject to significant regulatory action that could result in the person being barred from the industry in extreme cases.

Resignation of a Registered Representative

If a registered representative voluntarily resigns or has his or her association with a member firm terminated for any reason, the member must fill out and submit a Uniform Termination Notice for Securities Industry Registration, which is known as Form U5. The member must submit the form to FINRA within 30 days of the termination. The member firm is also required to give a copy of the form to the representative upon termination. The member must also state the reason for the termination, either voluntary or for cause. Voluntary terminations cover all terminations that were not the result of the agent being fired for violations of industry or company regulations, such as staff reductions. An associated person’s registration is nontransferable. A representative may not simply move his or her registration from one firm to another. The employing firm that the representative is leaving must fill out and submit a Form U5 to FINRA, which terminates the representative’s registration. The new employing firm must fill out and submit a new Form U4 to begin a new registration for the associated person with the new employer. The new employer is required to obtain a copy of the U5 form filed by the old employing member either from the employee or directly from FINRA within 60 days of submitting the new U4. The previous employer is not required to provide a copy to the new member firm. If the new employing member asks the associated person for a copy of the U5, the member has two business days to provide it. If the member requests a copy of the U5 from the agent who has not received a copy of his or her U5 from the old employer, the agent must promptly request it from the old employer and provide it to the new employer within two business days of receipt. Should an agent’s previous employer discover facts that would alter the information on Form U5, the previous employer must file an amended Form U5 within 30 days and provide a copy to the former employee. A representative who leaves the industry for more than 24 months is required to requalify by exam. During a period of absence from the industry of two years or less, FINRA retains jurisdiction over the representative in cases involving customer complaints and violations.

TAKENOTE!

A firm may not allow an inactive agent to “park” his or her license with the firm and may not maintain an inactive agent’s license on the books simply to ensure that the agent does not have to requalify by exam. The one exception to the rule is for agents in the military who are called to active duty. While on active duty, the agent’s registration and continuing education requirements will be “tolled” until he or she returns. While on active duty the agent may not conduct business but may receive commissions generated from his or her book of business. Once the agent returns from active duty he or she has 90 days to reenter the securities industry. If after 90 days the agent does not reenter the business, the 24-month window begins.

Registration Exemptions

The following individuals are exempt from registration:

• Clerical
• Nonsupervising officers and managers not dealing with customers
• Non-U.S. citizens working abroad
• Floor personnel

Persons Ineligible to Register

Individuals applying for registration must meet the association’s requirements in the following areas:

• Training
• Competence
• Experience
• Character

Anyone who fails to meet the association’s requirements in any of the above listed areas may not become registered. An individual may also be disqualified by statute or through rules for any of the following:

• Expulsion, suspension, or disciplinary actions by the Securities and Exchange Commission (SEC) or any foreign or domestic self-regulatory organization (SRO).
• The individual caused the expulsion or suspension of a broker dealer or principal.
• The individual made false or misleading statements on the application for registration on Form U4 or Form B-D.
• Felony conviction or misdemeanor involving securities, bribery, falsification of reports, perjury, or any other felony within the last 10 years.
• Court injunction or order barring the individual.

A member firm may seek to maintain the employment of or to initially hire a person who has been statutorily disqualified by filing an appeal to FINRA’s registration and disclosure (RAD) department. The appeal may be decided by the department or referred to the National Adjudicatory Counsel (NAC). A hearing may be held by the Statutory Disqualification Committee and appealed to the NAC. The position being applied for under the appeal may only be clerical in nature and may not entail duties of a registered agent. A person who has been convicted of a felony that occurred less than 10 years ago may apply for a waiver to FINRA or the broker dealer's self-regulatory organization. If a waiver is granted the SRO must notify the SEC of the granting of such waiver. The SEC may overturn or object to the waiver being granted. If the waiver is granted the person covered by the waiver will be subject to heightened supervisory procedures.

TAKENOTE!

A person who was convicted of a felony more than 10 years ago is always required to disclose it on Form U4.

Disciplinary Actions Against a Registered Representative

If another industry regulator takes disciplinary action against a representative, the employing member firm must notify FINRA. Actions by any of the following should be immediately disclosed to the association:

• SEC
• An exchange or association
• State regulator
• Clearing firm
• Commodity regulatory body

Also immediately reportable...

Produkt-Details

• Erscheint lt. Verlag: 11.12.2018
• Sprache: englisch
• Themenwelt: Recht / Steuern ► Wirtschaftsrecht
• Themenwelt: Wirtschaft ► Betriebswirtschaft / Management ► Finanzierung
• Themenwelt: Betriebswirtschaft / Management ► Spezielle Betriebswirtschaftslehre ► Bankbetriebslehre
• ISBN-10: 1-119-55402-0 / 1119554020
• ISBN-13: 978-1-119-55402-8 / 9781119554028