General Securities Sales Supervisor (Series10) Practice Exam

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Prepare for the General Securities Sales Supervisor Exam. Practice with flashcards and multiple choice questions, each with hints and explanations. Ace your exam!

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Which entities are responsible for filing records required by FINRA?

A Only corporate firms
B Individual brokers only
C All member firms
D Only investment advisors

The correct answer is: C All member firms

The correct answer is that all member firms are responsible for filing records required by FINRA. FINRA, the Financial Industry Regulatory Authority, oversees brokerage firms and their registered representatives, ensuring compliance with federal securities laws and regulations. This encompasses a wide range of entities, including corporate firms, individual brokers, and investment advisors that operate under the scope of FINRA's regulation. All member firms must adhere to FINRA rules, which include the proper maintenance and submission of various records, such as trade confirmations, customer account statements, and transaction records. By requiring all member firms to participate in this process, FINRA ensures a comprehensive oversight framework that promotes transparency, protects investors, and maintains the integrity of the securities markets. Entities that do not qualify as member firms, such as investment advisors who are not affiliated with a broker-dealer, may have different regulatory obligations that fall under the purview of other authorities, but they are not considered responsible for FINRA record-keeping requirements. This distinction is crucial in understanding the regulatory landscape and the specific responsibilities associated with FINRA membership.