Category: Series 24 Exam Prep

More and more questions are popping up on FINRA Exams concerning disqualifying events which prohibit certain bad actors from participating in private placement offerings. With the implementation of the Dodd-Frank Wall Street Reform and Consumer Protection Act,  certain “bad actors” are precluded from participating in offerings under Regulation 506. If any covered person has been... "Private Placements and Bad Actors"

The SEC requires broker dealers to adhere to strict financial responsibility rules. These rules include the customer protection rule 15c3-3 and the net capital rule 15c3-1. The net capital rules have always been part of the Securities Exchange Act of 1934 and require broker-dealers to maintain a minimum level of financial solvency.  The more complex... "SEC customer classification"

In this article we are going to provide you with a comprehensive review regarding the outside business activities of associated persons and private Securities transactions.  Both of these topics are hot buttons for FINRA and are not only widely tested on their exams, but are also closely scrutinized during compliance examinations by FINRA staff members. ... "Outside Business Activities And Private Securities Transactions"

All broker-dealers must conduct an independent audit of their anti money laundering program prior to the end of each year.  To assist you in avoiding common mistakes and oversights that could become comments in your next AML Testing report, please review the following list of common findings identified during AML testing and recommendations on how... "Broker-dealer AML audit requirements"

In this article we are going to examine some of the complex issues that can arise when registered representatives use social media for business purposes. In addition to the requirements for registered Representatives who use social media we will look at  some of the compliance responsibilities for the employing broker-dealer. The use of social media... "FINRA Test Prep – Supervision of Social Media"

In this article we are going to take a look at the role of broker-dealers who operate in the NASDAQ environment.  If I were to ask you where NASDAQ is, it would be much the same as me asking you where is the internet– it’s nowhere and it’s everywhere. It’s a computer network throughout the... "FINRA Exam Prep – The Role of the Broker Dealer"

The SEC enacted the use of a Limit UP Limit Down (LULD) rule. This rule is designed to ensure that prices of individual securities reflect fundamental prices based on supply and demand and do not move outside of established parameters based on errors or manipulative actions. Upper and lower trading bands will be established based... "What is the Limit Up – Limit Down Rule?"

Here are some of the key points that you need to know about market maker registration and responsibility to help you pass you series 24 exam. All broker dealers that wish to register as a market maker must file an application with FINRA and demonstrate that they are in good standing with FINRA and that... "Series 24 market maker registration and responsibility"

Crowdfunding has become a popular way for issuers to raise capital from small investors. Issuers may offer securities to investors for purchase through a broker dealer or through a registered crowdfunding portal. The portal must be registered with the SEC and must also be a FINRA member firm. Issuers who raise capital through crowdfunding may... "What is Tested On Crowd Funding"

Offering of Securities by FINRA Members When a FINRA member firm wishes to raise money by offering securities for sale to investors special rules apply to the offering. When a FINRA member firm goes public it may not underwrite its own securities. The member wishing to go public must engage the services of a qualified... "Series 24 Test tip Member offerings"