Series 10 cheat sheet

FINRA Rule 3110 requires a firm to maintain written supervisory procedures reasonably designed to achieve compliance and to designate a registered principal responsible for supervision.

Form U4 must be amended within 30 days of a reportable event; Form U5 must be filed within 30 days after termination of registration.

Registered persons must complete the Regulatory Element within 120 days after the second anniversary of registration and every three years thereafter; failure places registration in CE inactive status.

The Firm Element is an annual needs-based training plan for covered registered persons; completion is documented by the firm.

FINRA Rule 3270 requires prior written notice to the firm before an associated person engages in an outside business activity for compensation.

FINRA Rule 3280 requires prior written notice of private securities transactions; the firm may approve, reject, or treat the activity as selling away.

FINRA Rule 3220 limits gifts or gratuities to $100 per person per year; ordinary business entertainment is not a gift.

FINRA Rule 3240 restricts borrowing from or lending to customers unless the firm's written procedures permit it and specified conditions are met.

A statutory disqualification event, such as a felony conviction, injunction, or suspension, can bar registration unless the firm obtains relief through an eligibility proceeding.

FINRA Rule 4512 requires firms to collect and maintain customer account information, including name, address, tax ID, investment objectives, risk tolerance, and, for natural persons, a trusted contact person.

FINRA Rule 2090 requires reasonable diligence to know the essential facts about each customer and the authority of each person acting on the account.

Recommendations to retail customers are governed by Reg BI, SEA Rule 15l-1, which imposes care, loyalty, conflict-of-interest, and disclosure obligations.

FINRA Rule 2111 requires a recommendation to be suitable based on reasonable-basis, customer-specific, and quantitative considerations.

The CIP rule, 31 CFR 1023.220, requires identity verification within a reasonable time and retention of identifying records for five years after the account closes.

FINRA Rule 3310 requires a written AML program with a designated AML compliance officer, ongoing training, monitoring, and independent testing at least annually.

Reg T initial margin for equities is 50% of the purchase price; FINRA Rule 4210 maintenance margin for long equities is 25% of market value.

A pattern day trader must maintain at least $25,000 equity and execute four or more day trades in five business days in a margin account.

FINRA Rule 3260 requires written authorization accepted by the firm before a registered representative exercises discretion in a customer account.

FINRA Rule 2210 requires retail communications to be fair and balanced, approved by a registered principal before use, and certain retail communications filed with FINRA within 10 business days of first use.

SEA Rule 17a-3 requires creation of books and records; SEA Rule 17a-4 requires retention for six years, with the first two years readily accessible.

FINRA Rule 5310 requires firms to use reasonable diligence to seek best execution, considering price, speed, certainty, and order size.

FINRA Rule 4530 requires reporting specified events within 30 days and quarterly reporting of customer complaint statistics to FINRA.

FINRA Rule 4370 requires a written business continuity plan, annual review, and designation of emergency contacts.

FINRA Rule 3110(c) requires annual inspection of offices of supervisory jurisdiction and at least every three years for qualifying branch offices.

SEA Rule 15c3-1 imposes minimum net capital requirements and early warning thresholds for broker-dealers.

Customer complaints must be recorded and retained and are subject to FINRA examination and reporting requirements.

FINRA Rule 2020 prohibits the use of manipulative, deceptive, or fraudulent devices in connection with securities transactions.