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20 Cards in this Set
- Front
- Back
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Chapter 1 - At or before account approval
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• All customers who are approved by the ROSFP (Registered Options and Security Futures Principal) to trade options must receive a copy of the OCC Options Disclosure Document (ODD) at or before the time the account is approved to trade options
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Chapter 1 - Periodically
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• Under FINRA rules, customer accounts must be reviewed periodically. However, discretionary accounts must be reviewed frequently.
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Chapter 1 - Within 2 Business days
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• Under FINRA rules, if a new employer requests a copy of Form U-5 from a new employee, he must provide it within two business days.
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Chapter 1 - 5 days after
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• FINRA rules prohibit analysts and members of their households from investing in a company's securities for 30 days before and 5 days after the analyst issues a research report on the company.
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Chapter 1 - Within 10 Business days
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• If a representative is the subject of in-house disciplinary action involving suspension, termination, withholding of commissions, or fines in excess of $2,500, FINRA must be notified within ten business days.
• Firms must provide a customer with a copy within ten business days of receiving a request. If a firm does not have a copy, it must inform the customer of that fact. • A member firm is required to notify FINRA within ten business days whenever one of its associated persons is the subject of a customer complaint alleging theft, misappropriation of customer assets, or forgery. Furthermore, notification is also required if an associated person becomes the subject of in-house disciplinary action involving suspension, withholding of commissions, or fines in excess of $2,500. |
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Chapter 1 - 10 days before first use
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• After a leave of absence of more than two years, a registered representative must requalify by examination. When the representative left the old firm, her registration was terminated and the firm filed a Form U-5. When a new firm hires the representative, she must reapply for registration on a Form U-4. There are exceptions for those called up to active military duty.
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Chapter 1 - 10 consecutive days
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• Decisions reached by the Department of Enforcement become final 30 calendar days after formal issuance, when time has run out for filing an appeal and setting possible redress motion in action. Under the Code of Procedure, the respondent has 25 days from the issue date of the Department of Enforcement's formal decision to file an appeal with the National Adjudicatory Council. This 25-day period runs concurrently with the 30-calendar-day waiting period for the Department of Enforcement's decision to become final.
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Chapter 1 - Within 10 days of first use
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• If a firm plans to offer an investment analysis tool to its customers, it must provide FINRA access to the tool within ten days of first use. Furthermore, the firm must describe the criteria and methodology used,
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Chapter 1 - 10 days
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• An established member must file advertising and sales literature relating to investment companies, government securities, and direct participation programs with FINRA within ten days of first use (postfiling).
• Rule 2711 imposes a quiet period of 40 days for IPOs and ten days for additional issue offerings. |
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Chapter 1 - Within 14 days
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• A second notice requires a response within 14 days. The notice states that failure to reply allows the hearing officer to enter a default decision (guilty as charged).
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Chapter 1 - 15 Days
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• After giving 15 days' written notice, FINRA may suspend or revoke the membership of any member in arrears in the payment of fees, dues, assessments, or other charges. This includes failure to honor an arbitration award.
• Arbitration awards must be paid within 30 days of decision date. If a firm fails to pay within this time period, FINRA may suspend or revoke the firm's membership after giving 15 days' written notice. |
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Chapter 1 - 21 Days
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A prehearing conference must be held within 21 days of the respondent's answer.
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Chapter 1 - Within 25 days
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• After receiving a complaint from the Department of Enforcement, a respondent has 25 days to file a response.
• If they are not appealed, Department of Enforcement decisions become final no earlier than 30 days after the written decision is handed down. Appeals must be made within 25 days of the decision date. The exceptions are barring and expulsion, which take effect immediately. |
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Chapter 1 - Within 25 days of decision date
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• Rule G-37 prohibits contributions to issuer officials by municipal firms, municipal finance professionals (MFPs) employed by the firm, and political action committees controlled by the firm. Contributions of up to $250 per election are permitted. This exemption applies only to MFPs eligible to vote for that official.
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Chapter 1 - Within 30 days
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• If a member learns facts that show a Form U-5 filing to be inaccurate, the member must file an amended form within 30 days.
• All monetary awards in a Code of Arbitration decision must be paid within 30 days of the decision date. If payment is not made, the amount of the award begins to accrue interest as of the decision date. • If Form U-5 is not filed with FINRA within 30 days of a termination date, a late filing fee will be assessed. |
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Chapter 1 - 30 days before
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• FINRA rules prohibit analysts and members of their households from investing in a company's securities for 30 days before and 5 days after the analyst issues a research report on the company.
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Chapter 1 - 30 Days
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• Routine amendments to Form U-4 must be made within 30 days of any change. If the change is not routine (i.e., it might affect a firm's membership), the filing must be done within ten days.
• Arbitration awards must be paid within 30 days of decision date. If a firm fails to pay within this time period, FINRA may suspend or revoke the firm's membership after giving 15 days' written notice |
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Chapter 1 - 30 Days prior to closing date
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• Registrations in the National Do-Not-Call list are maintained for five years. A consumer may reregister her telephone number at any time. Such reregistration begins another five-year registration period. FINRA rules on a firm-specific, Do-Not-Call list mirrors this five-year rule.
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Chapter 1 - No earlier than 30 days
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• If they are not appealed, Department of Enforcement decisions become final no earlier than 30 days after the written decision is handed down. Appeals must be made within 25 days of the decision date. The exceptions are barring and expulsion, which take effect immediately.
• Decisions reached by the Department of Enforcement become final 30 calendar days after formal issuance, when time has run out for filing an appeal and setting possible redress motion in action. Under the Code of Procedure, the respondent has 25 days from the issue date of the Department of Enforcement's formal decision to file an appeal with the National Adjudicatory Council. This 25-day period runs concurrently with the 30-calendar-day waiting period for the Department of Enforcement's decision to become final |
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Chapter 1 - 30 Business Days
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Under FINRA rules, any location, other than a primary residence, that is used for less than 30 business days annually for securities business is excluded from the definition of a branch. These locations would generally include vacation or second homes
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