Series 99 Practice Exam

One’s personal account equity may be used, but no other accounts.

The inherent risks of day trading mandate that the client be capable of complying with the immediate demands for additional equity where that occurs.

Who invests in the hedge fund is not information required by an SRO to open such an account.

Absent a bona fide full power of attorney presented by one of the joint owners in the account, liquidation checks must be made out in the account name only, meaning in the names of both or all joint owners.

Validation is to occur within one business day; however, actual transfer of account will take place within three business days of validation.

In those instances in which mail sent to a customer is being returned undelivered, have the RR of record attempt to contact the client by means other than mail to determine if there has been a change of address or if the client may be impaired or otherwise unable to accept delivery by mail.

No liquidation proceeds will be released to the former minor until and unless a written authorization has been obtain by the firm from the Custodian of the UGMA account.

Fails to deliver and fails to receive records may or may not be retained by the former firm; however, Customer Statements are SRO and SEC retention requirements for a period of time as specified in the rules and regulations.

Though not often, there are occasions in which the specific security a client wishes to purchase is not available. The RR may offer the client a security which is similar to the one requested, and where the client approves the recommended security, the order ticket must be marked "solicited."

Absent unusual circumstances, back office employees are not subject to FINRA’s Taping Rule. However, all sales personnel become subject to the rule once it has been determined the B/D is subject to the rule.

FINRA and/or the SEC do not have Do Not Call lists. The B/D will have its own list, and there is of course a National Do Not Call Registry with which the firm must comply.

A cancellation of the order followed by a correct re-bill will be required to fix the mistake, but principal approval is a requirement.

When your firm has determined that part of a purchase has been properly delivered, making payment for that part is permissible, though not a requirement. A reclamation can be done on the entire order if the purchasing B/D so determines.

Whether the RR handling a customer’s account may owe their member firm money has nothing to do with the processing of that customer’s transfer of account request.

Under normal market conditions, once the RR writes the order ticket, the procedure is that the order room will execute the order; the purchase & sale department will handle the processing of the order with the contra-dealer through ACT or otherwise; the margin department will be involved to ensure any outstanding debit balance is taken into account where appropriate; and the cashier/cage will handle the receipt or disbursement of payment for the trade.