Summary
An Associated Person (AP) is one of several kinds of individuals or firms that must register with the FCTC; each of these categories has its own rules governing registration. The AP must be familiar with rules governing opening accounts and reporting positions, as well as rules governing futures commission merchants (FCMs), introducing brokers (IBs), commodity pool operators (CPOs) and commodity trading advisors (CTAs). The AP must further be familiar with NFA rules governing arbitration and disciplinary proceedings.

Review


  1. A firm need not register with the CFTC if it is already registered with the:
    1. SEC
    2. NFA
    3. Both A and B
    4. Neither A nor B


  1. Every AP is qualified to

I. take customer orders

II. trade on her firm's account

III. trade on a customer's discretionary account

IV. supervise other APs

a. I only

b. I and II

c. I, II and III

d. I, II, III and IV

  1. Large-scale traders must report their positions

a. annually

b. semi-annually

c. quarterly

d. daily

  1. Which is NOT a stipulation of Rule 2-29 governing public communications?
    1. Promotional materials may not be deceptive or misleading
    2. Promotional materials may not use high-pressure sales tactics
    3. Testimonials must prominently state, in all cases, that they are paid testimonials.
    4. Must be accompanied by an equally prominent statement of the risk of loss


  1. Which statement about disciplinary procedures is TRUE :
    1. Investigations are initiated by the NFA's Business Conduct Committee.
    2. All violations are dealt with through the procedure of convening hearings.
    3. There is no appeal in the disciplinary hearing process.
    4. Monetary fines cannot exceed $250,000.

  2. A securities broker/dealer may offer security futures contracts.
    1. True
    2. False

  3. Which of the following individuals may approve security futures accounts?
    1. Series 24
    2. Series 3
    3. Series 30
    4. Series 53

  4. The following are self-regulatory organizations.

I. The SEC

II. FINRA

III. NFA

IV. CFTC

V. FDIC

1. II, III, V

2. I, III, V

3. II, III

4. I,II, III

  1. Brokerage and futures accounts are subject to substantially similar rules on account protection.
    1. False
    2. True

  2. Associated persons are subject to binding arbitration as are FINRA securities licenses.
    1. True
    2. False





Answers

Related Articles
  1. Personal Finance

    Tips for Taking the CFA Exam: Part 1

    Peter Mackey, head of exam development for the CFA Institute, shares his tips for taking the CFA level I, II and III exams.
  2. Insights

    FINRA: How It Protects Investors

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

    Understanding The Basel III International Regulations

    The Basel III regulations mark a drastic reform in international banking. But how do they impact the future's investment landscape?
  4. Trading

    Get To Know These Crucial US Options Market Regulations

    How are options regulated in the U.S and which organizations are involved in options market regulations?
  5. Personal Finance

    What To Expect On The CFA Level III Exam

    The Chartered Financial Analyst Level III exam, which is only offered in June, is the last in the series of three tests that CFA candidates must pass.
  6. Investing

    What is Basel III?

    The purpose of the Basel accords is to improve the worldwide bank regulatory framework.
  7. Financial Advisor

    How To Handle A Serious Dispute With Your Broker

    Find out what to do if you have a dispute with your broker.
  8. Insights

    How The Patriot Act Works & Why Is It Important

    The USA Patriot Act gave the government more muscle to fight financial crime after the Sept. 11 terrorist attacks. Here's an overview.
Frequently Asked Questions
  1. Why is social responsibility important to a business?

    Take social responsibility seriously, and your business could benefit from happier, more productive staff members while helping ...
  2. Which socially responsible retailers appeal most to ethical investors?

    Learn why ethical investors have many options in the retail sector, and discover which retail companies are most popular ...
  3. What are Some Examples of Free Market Economies?

    Learn which of the world's economies best resemble free market economies, marked by free trade, low government involvement, ...
  4. Who Decides When to Print money in India?

    Find out the role of the Reserve Bank of India, or RBI, and the amount of authority given to the government. Learn who is ...
Trading Center