1. A. One registers with a federal commission like the SEC or CFTC; one joins an industry association like the NFA.
  2. B. An AP needs three years in the field to handle discretionary accounts, and may require further licensure to supervise.
  3. D. The others are false.
  4. C. Not all testimonials are necessarily paid testimonials.
  5. D. Compliance directors initiate investigations. MRAs and offers to settle bypass the hearing process. Although arbitration cannot be appealed, disciplinary hearings can.
  6. B. The broker/dealer must apply to offer security futures through the process of notice registration with the CFTC, unless that broker/dealer is fully registered with both the CFTC and the SEC in which case it may offer a full range of both futures and securities products.
  7. C. A series 24 is a FINRA general securities principal, a 53 is a municipal fund securities principal (for brokerage firms that write 529 plan (a municipal fund security) business and a Series 3 is the license for an associated person who holds no supervisory capability).
  8. 3. The other three organizations are federal agencies that regulate futures, securities and banks.
  9. A. CFTC requires segregation of accounts from firm assets. By contrast, SIPC rules protect account values up to specific thresholds, with differing limits for cash and securities.



Facing Your Fears

Related Articles
  1. Insights

    FINRA: How It Protects Investors

    Find out the history of FINRA, and how it's organized to monitor the markets and protect investors.
  2. Insights

    The National Futures Association As Market Watchdog

    As the overseer of the commodities and futures industry, the NFA helps to protect investors from fraudulent futures activities.
  3. Financial Advisor

    Are My Investments Insured Against Loss?

    Money invested in a brokerage account has some protection, but that doesn't mean you can't lose it.
  4. Trading

    Financial Regulators: Who They Are And What They Do

    Find out how these government agencies govern the financial markets.
  5. Financial Advisor

    Should You Add A Securities License To Your Qualifications?

    Clients love planners who sell securities, but a securities license takes a lot of work. Learn if the stress and study are worth it.
  6. Financial Advisor

    Who's Looking Out For Investors?

    If your account has been mishandled, FINRA and the SEC are among several organizations that can help.
  7. Investing

    Bank Failure: Will Your Assets Be Protected?

    The SIPC and FDIC insure against personal financial ruin when banks or brokerages go belly up.
  8. Investing

    Top 25 Broker-Dealer Firms of 2017

    These are the top 25 broker-dealer firms based on assets under management.
  9. Personal Finance

    Policing The Securities Market: An Overview Of The SEC

    Find out how this regulatory body protects the rights of investors.
  10. Financial Advisor

    Is Your Broker Legit? 6 Steps to Take

    The Great Recession may have ended, but broker wrongdoing hasn't. Here's how to make sure you don't get stuck with the next Bernie Madoff.
Frequently Asked Questions
  1. What's the Best Way to Contact Warren Buffett?

    Learn how to contact Warren Buffett and what kinds of contact is most likely to receive a response from him or from his company, ...
  2. What is the Financial Services Sector?

    A diverse group of companies, beyond banks and credit unions, comprises the financial services sector.
  3. Who are Whole Foods' (WFM) main competitors?

    Whole Foods' main competitors are Sprouts Farmers Markets and Trader Joe's. However, the recent acquisition by Amazon my ...
  4. What caused the Stock Market Crash of 1929 that preceded the Great Depression?

    Find out what led to the stock market crash of 1929, which in turn led to the Great Depression. It sparked a nearly 90% loss ...
Trading Center