Maurice Sales Supervision – Flashcards

1. Financial plans are "advisory products." 2. To sell firm must be registered as an "investment adviser"

One who has cash or securities in the possession of the broker-dealer.

1. Accept unsolicited customer orders 2. Provide current quotes to customers 3.

1. Alternate responsibility every 2 years or less. 2. cannot report to the producing manager 3. must be located in a different office from the producing manager 4. cannot have supervisory responsibility for the activity being reviewed ( person's compensation cannot be based on the producing manager's sales)

1. include a speech to 15 or more persons about investing 2. must be approved in advance by the Supervisory Analyst 3. must be accompanied by an "Analyst Certification" 4. must disclose any potential conflicts of interest between the member firm or analyst and the recommended issuers

1. 10 business days after 1st use 2. Investment Companies, 3. CMO, 4. registered Structured Products and 5. Registered Direct Participation Program

5 years

A customer can be contacted if they have have done business with your firm in the last 18 months

1. Office of Supervisory Jurisdiction must be reviewed at least annually 2. registered representative and registered principal must have compliance reviews annually 3. Non-supervisory branches must be inspected at least every 3 years.

1. All retail communications must be approved in writing by a principal prior to use. 2. a firm's first year in business, retail communications must be filed with FINRA 10 days in advance of use; thereafter no filing is required (except for those retail communications involving options and mutual fund ads with either member-prepared performance rankings or bond fund volatility ratings - which always must be pre-filed).

1. information provided to obtain a financial product or service (e.g., new account info.); 2. customer transaction, account balance, payment history, etc.; 3. information from a consumer report (e.g., information obtained from an Equifax or TransUnion credit report).

trade practice complaints 1. customer disputes with member firms

handle disputes from member to member, such as settlement problems.

1. Interactive content on social networking sites or blogs is considered to be a public appearance 2. Non-interactive content on social networking sites or blogs is considered to be advertising

FINRA must be notified by filing a U-5 Form within 30 days

All four

Supervisory Analyst. qualified by passing the Series #16 Supervisory Analyst examination. There is no requirement to file research report copies with FINRA in advance of, or after, first use.

To do so, the branch manager must be licensed as a General Principal (Series #24)

I Member - FINRA II Member - SIPC

1. A person associated with the member is a defendant or respondent in a securities related litigation or arbitration disposed of by judgment, award, or settlement, in an amount exceeding $15,000. 2. A person associated with a member is the subject of a claim for damages by a customer, broker, or dealer settled for an amount exceeding $15,000. 3. A person associated with a member is the subject of disciplinary action taken by the member involving suspension, termination, or the withholding of commissions or fines in excess of $2,500.

The decision may be appealed to the FINRA National Adjudicatory Council (Under the FINRA Code of Procedure used to handle violations of the Conduct Rules (customer to member), the first hearing is held in front of the District Hearing Panel. Any decision of the District Hearing Panel may be appealed to the National Adjudicatory Council. Their decision may be appealed to the Securities and Exchange Commission. Finally, any SEC decision can be appealed to Federal Court.)

1. take a second job 2. serve as an officer or director of another business organization 3. to own stock in a privately held financial services company

Either a General Principal (#24 license) or an Investment Companies/Variable Annuities Principal (#26 license) can approve mutual fund advertising.

disclosing personal information about customers

1. approved in advance of use by the General Principal 2. member firm assumes responsibility for the speech's content 3. talk must be informational, not promotional in nature.