Series 26 Practice Exam

According to FINRA rules regarding associated persons, what would be the registration status of a registered representative who has been called up for active duty service in the US Military?

In instances in which a customer will be engaging in a viatical settlement of their insurance policy, with which policy will FINRA have a compliance concern?

Under updated FINRA rules pertaining to communications with the public, these communications fall into which of the following categories?

I.    Retail communication

II.   Institutional communication

III.  3rd party material supplied to the member firm

IV.  Correspondence

With regard to prospectuses to be furnished to public customers purchasing open-end investment companies, which of the following descriptions of the rules are most accurate?

Your member firm may become subject to FINRA's Taping Rule under which of the following circumstances?

FINRA rules require that a member firm must, at a minimum, retain its complaint file for how long?

Your firm is engaged in offering retirement plan services to the public. You often recommend open-end investment company shares to your clientele as the most suitable way to begin investing in securities. Which of the following plans are considered non-qualified plans?

When more than one individual wishes to open an account at a B/D, and the owners of the account shall have their share of the account pass to their estate in the event of death, the proper account type they’ll be directed to open is the:

A registered rep is contacted by a client who instructs the RR to purchase $5,000 worth of the best performing growth fund which your firm makes available for sale. The rep can write up the order ticket for this client:

None of the following qualify as securities as defined by the Securities & Exchange Commission with the exception of:

Section 19 of the Investment Company Act of 1940 specifies that the net capital gains from portfolio transactions shall be distributed to a mutual fund’s shareholders:

The Securities & Exchange Act of 1934 contains a number of requirements for the contents of customer confirmations. Among them is the requirement to disclose:

One of your long-time reps has informed you that they have someone who wants to transfer their account to your firm. FINRA rules set forth the requirements as follows:

According to the SEA of 1934, Regulation T, none of the below is eligible to be purchased on margin except:

One of your registered reps has had a written customer complaint filed against them. The complaint alleges the rep made an unsuitable recommendation of some $50,000 in the client’s account. How should the incident be handled, according to FINRA’s Code of Arbitration?

By signing Form U-4, each of your newly-hired agents have agreed to which of the following?

When one of your reps appears to have numerous customers purchasing mutual fund shares on the day prior to the ex-date, you are likely looking at which of the following violations of FINRA regulations?

As an Investment Company/Variable Contract member firm engaging in subscription selling exclusively, SEC rules set a minimum net capital for the firm of:

At the time of new account opening, your firm’s AML registered principal will ordinarily be the individual who will check the client’s identity against which of the following?

One of your reps has a mutual fund client who wishes to invest $15,000 into one of the funds you are recommending. The one they want to buy has a $25,000 breakpoint.  Your rep writes the order ticket for the $15,000; however, when you get the executed ticket for managerial review, you would be looking to make sure your rep isn’t engaging in: