Series 10 flashcards
Series 10 · Build recall with a focused review session.
32 cards. Read the term and the definition here. The deck at the top of this page is optional.
- Form U4
- Uniform application for securities industry registration filed through CRD; it discloses employment history and reportable disciplinary events, and amendments are generally due within 30 days of the event.
- Form U5
- Uniform termination notice for securities industry registration; the firm must file it within 30 days after termination and state the reason for termination.
- Regulatory Element
- FINRA continuing education requirement for registered persons; it must be completed within 120 days after the second registration anniversary and every three years thereafter to avoid CE inactive status.
- Firm Element
- Annual firm-designed training plan for covered registered persons; content is based on the firm's needs assessment and completion must be documented.
- Outside business activity
- FINRA Rule 3270 requires an associated person to give prior written notice to the firm before participating in an outside business activity for compensation.
- Private securities transaction
- FINRA Rule 3280 requires prior written notice of a transaction outside the firm; the firm may approve, reject, or treat the activity as selling away.
- Gift limit
- FINRA Rule 3220 limits gifts or gratuities to $100 per person per year; ordinary business entertainment is excluded from the limit.
- Customer borrowing rule
- FINRA Rule 3240 restricts registered persons from borrowing from or lending to customers unless the firm's written procedures permit it and specified conditions are satisfied.
- Statutory disqualification
- An event such as a felony conviction, injunction, or suspension that can bar a person from registration unless the firm obtains relief through an eligibility proceeding.
- Annual compliance meeting
- FINRA Rule 3110 requires an annual meeting for registered persons to discuss compliance matters; it may be conducted in person or electronically.
- Trusted contact person
- For natural-person accounts, FINRA Rule 4512 requires the firm to obtain a trusted contact person; the firm may contact that person but cannot authorize transactions based on that contact alone.
- Customer account information
- FINRA Rule 4512 requires records of the customer's name, address, tax identification number, investment objectives, risk tolerance, and other account profile information.
- Know Your Customer
- FINRA Rule 2090 requires reasonable diligence to know the essential facts about each customer and the authority of each person acting on the account.
- Suitability Rule 2111
- FINRA rule requiring recommendations to be suitable based on reasonable-basis, customer-specific, and quantitative considerations; it applies to recommendations to customers.
- Regulation Best Interest
- SEA Rule 15l-1 requires broker-dealers to act in the best interest of retail customers when recommending securities, with care, loyalty, conflict, and disclosure obligations.
- CIP rule
- Customer Identification Program rule under 31 CFR 1023.220 requires identity verification within a reasonable time and retention of identifying records for five years after the account closes.
- AML program
- FINRA Rule 3310 requires a written anti-money-laundering program with a designated compliance officer, ongoing training, monitoring, and independent testing at least annually.
- Reg T initial margin
- Federal Reserve Regulation T generally requires 50% initial margin for equity purchases in a margin account.
- Maintenance margin
- FINRA Rule 4210 generally requires 25% maintenance margin for long equity positions, based on current market value.
- Pattern day trader
- A customer who executes four or more day trades in five business days in a margin account; the customer must maintain at least $25,000 equity.
- Discretionary authorization
- FINRA Rule 3260 requires written authorization accepted by the firm before a representative exercises discretion in a customer account; oral discretion is not sufficient.
- Confirmation disclosure
- SEA Rule 10b-10 requires a confirmation at or before completion disclosing the security, price, capacity, and compensation.
- Retail communication filing
- FINRA Rule 2210 requires certain retail communications to be filed with FINRA within 10 business days of first use.
- Principal approval
- FINRA Rule 2210 requires a registered principal to approve retail communications before use; correspondence remains subject to firm review and supervision.
- Books and records retention
- SEA Rule 17a-4 requires broker-dealers to retain required records for six years, with the first two years readily accessible.
- Best execution
- FINRA Rule 5310 requires reasonable diligence to seek the best market for customer orders, considering price, speed, certainty, and order size.
- Customer complaint reporting
- FINRA Rule 4530 requires reporting specified events within 30 days and quarterly reporting of customer complaint statistics to FINRA.
- Business continuity plan
- FINRA Rule 4370 requires a written business continuity plan, annual review, and designation of emergency contacts.
- Branch office inspection
- FINRA Rule 3110(c) requires annual inspection of offices of supervisory jurisdiction and at least every three years for qualifying branch offices.
- Net capital rule
- SEA Rule 15c3-1 sets minimum net capital and early warning thresholds that a broker-dealer must maintain.
- Manipulative devices
- FINRA Rule 2020 prohibits the use of manipulative, deceptive, or fraudulent devices in connection with securities transactions.
- Complaint records
- Firms must record and retain customer complaints and make them available for regulatory examination and reporting.