Question

Which statement is TRUE?

1. Disputes between member firms are handled by the Code of Arbitration
2. Violations of FINRA rules are handled by the Code of Procedure
3. Members may agree to a summary complaint procedures in order to avoid a hearing
4. Either all of the above are true or none of the above are true

Which statement is TRUE?

1. Firms must register their representatives with FINRA’s Central Registration Directory
2. Principals for member firms must pass the Series 93 exam
3. If an individual is found to be in serious violation of FINRA rules, they may be expelled
4. Either all of the above are true or none of the above are true

Answer 1

1. Disputes between member firms are handled by the Code of Arbitration - TRUE , Arbitration is an alternative to litigation or mediation in order to resolve a dispute.  
2. Violations of FINRA rules are handled by the Code of Procedure NA
3. Members may agree to a summary complaint procedures in order to avoid a hearing TRUE

1. Firms must register their representatives with FINRA’s Central Registration Directory TRUE , Form U4 requires all individuals to report in Section 1 (General Information) the Office of Employment where the individual is physically located. If the individual is physically located at only one location (i.e., the main office), there are two options:
   1. If the main office qualifies as a branch office, select the branch office. (Form BR for that branch will also indicate that the individual is associated with that branch); or
   2. If the firm determines that the individual’s activities are limited to compliance, internal audit, or other non-sales or trading activities, then select BDMAIN or IAMAIN (i.e., the non-branch location of the main office).
2. Principals for member firms must pass the Series 93 exam TRUE
3. If an individual is found to be in serious violation of FINRA rules, they may be expelled TRUE