TEAS Reading: Craft and Structure (Quiz 2) Welcome to your SIE Practice Quizzes. Note: We designed four (4) sets of practice quizzes for each Domain. each quiz set has 25 questions. Domain 4 (Set 3): Overview of the Regulatory Framework. (25 questions) Please click NEXTÂ to start your Free SIE Practice Quizzes right away. Best of Luck! 1. SIE, Overview of Regulatory Framework,SIE An amended Form U-5 must be filed and a copy sent to the former employee within how many days of discovery of the inaccuracy? A) 10 B) 25 C) 30 D) 90 None 2. SIE, Overview of Regulatory Framework,SIE Someone responsible only for training associated persons at a Financial Industry Regulatory Authority (FINRA) member firm A) need not hold any registration because training is the person's only function. B) must be registered as a principal of the firm. C) need not be registered because training is considered administrative. D) need only be registered as a registered representative. None 3. SIE, Overview of Regulatory Framework,SIE A registered representative has left one firm to join another. Sometime later, the former employer discovers that some information on Form U-5 filed at the time of termination was inaccurate. The firm need not file an amended U-5 if at least how much time has gone by? A) 2 years B) 30 days C) No stated time limit D) 5 years None 4. SIE, Overview of Regulatory Framework,SIE A registered person has left the securities industry and now holds a manufacturing job. Under what circumstances may this formerly registered person continue to receive commissions from work done at the person's old firm? A) A contract must have been signed by the registered person and the firm specifying what commissions are still to be paid. B) Once the registered person has left the industry, the person must be treated like any member of the public and may not receive any further commissions. C) Any contract regarding continuing commissions must include the provision that the person's spouse must receive them in the event of the person's death. D) The person may only receive commissions from current trades done by those who were the person's customers during employment at the firm. None 5. SIE, Overview of Regulatory Framework,SIE An individual has been a registered representative with a national firm for the past three years. Another member firm makes an attractive offer in an attempt to lure this individual to join them. In order to do so, the paperwork necessary would be A) a Form U-5 from the previous employer. B) a transfer of registration on Financial Industry Regulatory Authority (FINRA) form TRF. C) both a Form U-5 from the previous employer and a Form U-4 from the new one. D) completing a new Form U-4 with the new employer. None 6. SIE, Overview of Regulatory Framework,SIE Registered representatives must complete or satisfy each of the following except A) the firm element. B) the Form U-5. C) state registration requirements. D) the regulatory element. None 7. SIE, Overview of Regulatory Framework,SIE When a registered person leaves the securities business, Financial Industry Regulatory Authority (FINRA) retains jurisdiction over that person for how long? A) 1 year B) 2 years C) In perpetuity D) 30 days None 8. SIE, Overview of Regulatory Framework,SIE Noncash compensation exceeding the $100 annual limit to another member firm's employee is A) permitted only if it is an ongoing occurrence such as season tickets. B) permitted if occasional. C) permitted because it excludes cash. D) never permitted. None 9. SIE, Overview of Regulatory Framework,SIE Municipal Securities Rule Board (MSRB) and Financial Industry Regulatory Authority (FINRA) rules specifically deter gaining political favor via contributions made to candidates, officials, or political parties. As such, if a political contribution is made to any of these entities then under the act, the firm may not provide advisory services to any government these individuals or parties represent for how long? A) five years. B) three years C) two years D) six months None 10. SIE, Overview of Regulatory Framework,SIE Failure to complete the regulatory element continuing education (CE) requirement within the allotted time period will result in A) suspension of the individual until all CE requirements are met. B) the registration being deactivated until the requirements are met. C) an automatic extension request, which Financial Industry Regulatory Authority (FINRA) will normally be grant. D) an automatic bar from the industry for three years. None 11. SIE, Overview of Regulatory Framework,SIE When is the electronic filing of all information on customer complaints by broker-dealers with Financial Industry Regulatory Authority (FINRA) due? A) Within 15 days of the end of each calendar year B) Semiannually, in June and December C) Within 30 calendar days of receipt of the complaint D) Within 15 days of the end of each calendar quarter None 12. SIE, Overview of Regulatory Framework,SIE Regarding political contributions, limitations are place with the view to A) deter gaining political favor by employing what is commonly known as pay to play. B) allow contributions to be made to any party without any possible loss of business. C) permit all contributions be made equally to all participating parties in an election. D) prohibit advisory services for a fee provided to any government the recipients represent for a period of 10 years after the contribution. None 13. SIE, Overview of Regulatory Framework,SIE All of the following statements about a home office are true except A) home offices are restricted to servicing existing customers only. B) a home office is subject to a premise visit and review by principals of the firm and Financial Industry Regulatory Authority (FINRA) examiners. C) the member firm must authorize the representative to open a home office. D) a home office may be widely advertised as a place of business. None 14. SIE, Overview of Regulatory Framework,SIE Financial Industry Regulatory Authority (FINRA) rules regarding outside business activity (OBA) require that A) prior written notice to the employing firm be provided. B) all activities be coordinated between both employers. C) all passive investments be reported under the rule. D) approval is gotten from FINRA or another self-regulatory organization (SRO). None 15. SIE, Overview of Regulatory Framework,SIE Gifts and gratuities directed to those who work at another firm may not be made by a member or associated person for amounts greater than A) $100 per year. B) $100 per individual per year. C) $250 per lifetime. D) $250 per year. None 16. SIE, Overview of Regulatory Framework,SIE A municipal securities dealer has just made a contribution to the mayor's reelection campaign. How long must the firm wait before it can enter competitive bids on proposed bond issues by the city? A) No waiting period B) Can never underwrite a bond for the city again C) Two years D) Six months None 17. SIE, Overview of Regulatory Framework,SIE Financial Industry Regulatory Authority (FINRA)'s Conduct Rules regarding gifts and gratuities would permit a branch manager to A) transfer ownership and the rights to a luxury box to the portfolio manager. B) invite a portfolio manager to see a popular Broadway show together. C) offer a portfolio manager two tickets to all shows for that theater season. D) offer two tickets to the portfolio manager if the portfolio manager directs trades to the branch manager's firm. None 18. SIE, Overview of Regulatory Framework,SIE Associated persons or registered representatives who want to work outside of their existing employment with their current broker-dealer may do so if they provide prior written notice to the member. In which of the following would notice not be required? A) Ownership equaling 5% interest in another financial services company is intended to be made. B) They will be involved in extensive fundraising activities for a charitable institution. C) They intend to serve only in the capacity of a director of another company with no compensation. D) The amount of total compensation expected from the outside employer is less than $7,500 per year. None 19. SIE, Overview of Regulatory Framework,SIE In general, the first industry form that a new applicant for registration sees is the Form U-4. This lengthy form requests information about the applicant's I. name including any aliases. II. residency history back through the previous two years. III. 10-year employment history. IV. convictions, but not arrests, dealing with any securities related violations. A) III and IV B) I and III C) I and III D) II and IV None 20. SIE, Overview of Regulatory Framework,SIE An applicant for registration was convicted of a misdemeanor within the past five years having to do with a motor vehicle driving infraction. For purposes of filing Form U4 for registration with a member firm, the applicant I. must list the conviction. II. need not list the conviction. III. would be automatically subject to statutory disqualification, whether the conviction was listed or not. IV. would not be subject to statutory disqualification. A) II and IV B) II and III C) I and III D) I and IV None 21. SIE, Overview of Regulatory Framework,SIE Firms applying for Financial Industry Regulatory Authority (FINRA) membership are required to I. agree to be in compliance with all federal securities laws. II. pay dues, assessments, and other charges the association levies. III. pass the appropriate qualification exam(s). IV. attend a FINRA annual conference no less frequently that once every three years. I and II B) II and III C) II and IV D) I and III None 22. SIE, Overview of Regulatory Framework,SIE A registered representative has left a firm and joined another. The new firm must obtain a copy of the Form U-5 filled out by the old firm. Where might the new firm obtain a copy of the form? I. From the new employee II. From the Securities and Exchange Commission (SEC) III. From Financial Industry Regulatory Authority (FINRA)'s Central Registration Depository (CRD) IV. From the representative's former employer A) I and III B) II and IV C) II and III None 23. SIE, Overview of Regulatory Framework,SIE Which of the following would be unacceptable reasons for an officer of a member firm to make a contribution to the election campaign of a political candidate? I. The candidate is a member of the officer's political party. II. The candidate has promised to steer business to the officer's firm. III. The candidate is a close relative of a potential customer of the firm. IV. The officer approves of the policies and programs the candidate has proposed. A) I and III B) I and IV C) II and III D) II and IV None 24. SIE, Overview of Regulatory Framework,SIE Which of the following constitute a private securities transaction, or selling away? I. A registered representative executes a trade for a customer in securities of a type normally handled by the representative's broker-dealer. II. A registered representative's sibling has some old bonds that the representative sells as a favor through a municipal securities broker. III. A registered representative helps an old school friend issue securities for a small business under formation. IV. A registered representative helps an acquaintance sell some inherited stock certificates without the acquaintance becoming a customer of the firm. A) II and IV B) I and III C) I and III D) III and IV None 25. SIE, Overview of Regulatory Framework,SIE One of the Financial Industry Regulatory Authority (FINRA) Conduct Rules is concerned with private securities transactions. Under that rule, it would be correct to state that I. if the member approves the registered representative participating in a transaction for compensation, it must treat the transaction as if it is being done on its own behalf by entering the transaction on its own books and supervising the associated person during the transaction. II. as long as no compensation to the registered representative is involved, notification to the member is not required. III. sale of a securities product to the registered representative's mother where there is only nominal compensation is not covered under the rule. IV. if the member disapproves of the registered representative's participation in a transaction for compensation, the associated person may not participate in it. A) I and II B) III and IV C) I and IV D) II and III None 1 out of 25 Time is Up! Time's up
