Consumer Complaint as provided under Section 21(a)(i) of the Consumer Protection Act, 1986, where the value of the goods or services and compensation, if any, claimed, exceeds Rupees One Crore is to be filed in with the Registry of this Commission within a period of two years from the date on which the cause of action has arisen. Complaint can be filled on all working days (Monday to Friday) between 10:00 A.M. to 4:30 P.M. at Ground Floor ‘Upbhokta Nyay Bhawan’, ‘F’
Block, General Pool Office Complex, INA, New Delhi-110 023. Consumer Complaint should be signed by the complainant and supported by a Notarised attested affidavit with 1+1 sets (with File cover) + Number of Opposite Parties. The Consumer Complaint along with all the copies should be paginated and duly indexed in the following seriatim: Show
Note : 1. The documents shall be filed in English language only or translated copy of any other language, duly typed in double space on one side of the paper. If any supporting documents are not legible the same will not be accepted until clear legible/photo copies are filed. 2. If the
documents are not filed as per in the format mentioned above the same will be returned to the parties at the 3. After the issue of notice, any documents in a case, the same has to be served on the other side and 1+1 sets (with File cover) be filed with proof of service. No document will be accepted unless filed two days (working days) in advance from the date of hearing. 4. Henceforth, the review petition/application for recalling of order will be listed before the bench by way of circulation in chambers. 5. The counsel or the parties appearing in person are filing a common petition / appeal against common order passed by the State Commission in a bunch of appeals / complaints. It causes inconvenience to the Hon’ble Benches to decide the independent issues pertaining to each matter, such as award of different amounts to different parties, etc. Hence, the Hon’ble President is pleased to direct the parties / Counsel to file independent or separate appeals/revision petitions, against each appeal/complaint decided by the State Commission in the common order. 6. No. of copies to be filed in the Commission 1+1 sets (with File cover) + Number of Opposite Parties. 7. Application for Certified copy of order must be made on Letter Head with signature & Rubber stamp by counsel with a statement that first free certified copy has not been received either by the party-in-person or their counsel. 8. Duplicate certified copy shall be issued on payment basis as per Regulation with a clear endorsement that earlier first free certified copy was sent by post at the address of the party-in-person or to their Counsel/Authorized Representative. BY ORDER HON’BLE PRESIDENT NCDRC regarding MSRB rules on gifts and gratuities? The maximum business related gift that may be given by a municipal securities employee is $100 per person per year. Business related entertainment is permitted under the rules, as long as it is not too excessive or frequent. Securities Investor Protection Corporation protects against A research analyst at PDQ Securities mentions to a registered representative at that firm that a new research report is coming out about ACME Corporation that is "highly positive." Prior to the issuance of the research report, the registered representative calls his customers and tells them to buy ACME stock. Based on this information Both the research analyst and the registered representative have violated insider trading rules Under FINRA rules, a customer complaint that must be resolved by the member firm is defined as any All of the following gifts given by a mutual fund sponsor to a registered representative violate FINRA rules
Rule 144A issues trade on PORTAL and only QIBs can trade Rule 144A issues. Rule 144A issues are private placement securities sold in minimum $500,000 blocks only to QIBs - Qualified Institutional Buyers (institutions with at least $100MM of assets available for investment). Whereas normal private placements cannot be traded, these can be traded from QIB to QIB. The market for this is PORTAL, but trading activity is thin in this market, especially as compared to the market for publicly traded securities. Under MSRB rules, if a Final Official Statement is not yet ready at the time of settlement of the purchase of a new municipal securities issue, the customer would receive a(n) copy of the Preliminary Official Statement The Securities and Exchange Commission was created under the Securities Exchange Act of 1934 and given regulatory authority over securities exchanges A new issue private placement offering is exempt under Regulation D and is allowed to be sold to a maximum of 35 non-accredited investors Securities Exchange Act of 1934 The general provisions of the Act apply to non-exempt securities only and The anti-fraud provisions of the Act apply to both exempt and non-exempt securities The FINRA 5% Policy requires that consideration be given to all of the following when determining mark-ups and commissions
All of the following are defined as "institutional clients" for purposes of the FINRA communications rules
A registered representative has prepared a research report about a new issue that is "in registration." The research report may not be sent. Since this issue is "in registration," it is in the 20-day cooling off period. The only permitted written communications during this period are the red herring preliminary prospectus, and a tombstone announcement (which, in reality, is not published until the effective date). This research report cannot be sent, since it would be considered to be a prohibited "offer to sell" the securities. violations of FINRA rules?
about a registered representative that wishes to promote him- or herself on the Internet? The representative can participate in an Internet Chat Room only with approval of the principal. The representative can create a website with approval of the principal. The final prospectus for a new registered securities issue contains the Public Offering Price and must be given to the customer at, or prior to, confirmation of sale A person registered as an Assistant Representative - Order Processor may perform which of the following functions? Accept unsolicited orders and take new account information. An Assistant Representative - Order Processor is an individual that has a Series 11 license. This person can only accept unsolicited customer orders. He or she cannot solicit customers. This person can take new account information (e.g., customer name, address, social security number, etc.) but cannot perform a suitability determination or sign the new account form. This person can be paid a salary, but cannot be paid commissions. A registered representative who handles the accounts of wealthy clients is told the following by one of her customers: "I made a "seed" money investment of $8,000,000 in a venture capital financing of a start-up tech company and received unregistered stock. Now I want to sell $4,000,000 of that company's shares." In order to handle the sale, which of the following "due diligence" items must be reviewed by the representative?
Under MSRB rules, if a customer requests, the dealer must disclose the order priority provisions on a new issue and does not have to disclose the underwriter's spread in a competitive bid new issue
After completion of his or her first Regulatory Element review, a Registered Representative must complete a Regulatory Element review every three years thereafter An officer of MNO Corporation wishes to sell stock under Rule 144. MNO has 15,000,000 shares outstanding. The previous weeks' trading volumes are: Nov 21 150,000 shares Nov 14 185,000 shares Nov 7 165,000 shares Oct 31 175,000 shares Oct 24 190,000 shares If the Form 144 had been filed one week prior to November 23rd, the maximum permitted sale would be Nov 14 185,000 shares Nov 7 165,000 shares Oct 31 175,000 shares Oct 24 190,000 shares 715,000 shares / 4 = 178,750 share average regarding the requirements of the MSRB for handling written customer complaints? All customer complaints must be resolved. The municipal principal must handle the resolution of each written customer complaint. The municipal principal must retain a file of all customer complaints with their resolution. The designated Registered Options Principal is responsible for which functions Writing of procedures for supervision of options accounts Review of
procedures for supervision of options accounts Approval of options advertising An officer of a company has acquired shares of that issuer in the open market. If the officer wishes to sell the shares There is no holding period requirement . A Form 144 must be filed with the SEC. "Control stock," which is registered stock of a company bought in the open market by an officer or director of that company, is subject to all Rule 144 requirements when the officer or director wishes to sell, except for the 6 month holding period. The 6 month holding period is required for restricted stock, but not for control stock. A municipal dealer places an order for $100,000 of new issue G.O. bonds, M '35 with the syndicate manager. The bonds will be placed in an "accumulation account" for a unit investment trust being established by the syndicate member. The syndicate member must disclose to the manager that the bonds are being purchased for an accumulation account. The manager will disclose the order to the other syndicate members when the syndicate account is closed. An order placed with the syndicate by a member for an "accumulation account" being managed by that member is unusual in that the bonds are not being sold to the general public. They really are being retained by a syndicate member for his own use. The syndicate member must disclose this to the manager when the order is placed; the manager will disclose any of these orders that have been filled to the other syndicate members when the account is closed; and the manager will fill these orders last- meaning they get priority after pre-sale, group (syndicate), and designated orders. They are treated as member takedown orders, and if there is sufficient interest in the issue, would not be filled because of the other orders with higher priority. regarding options sales literature that includes a recommendation? It must be approved prior to use by the designated Registered Options Principal . It must be accompanied or preceded by a copy of the latest Options Disclosure Document. Showing past or projected performance is permitted A registered representative hears from a good friend that "ACME Fund has taken a large position in ABCD stock." Based on this, the registered representative calls all of her customers with the recommendation that ABCD stock be purchased immediately. This action is prohibited since this is making a recommendation based upon a rumor The Self Regulatory Organizations (SROs) are A customer has a cash account holding $160,000 of securities and $340,000 of cash. If the broker-dealer were to fail, which statement is TRUE regarding the status of the account in an SIPC liquidation? The customer will become a general creditor in the amount of $90,000. SIPC covers customer claims against a failed broker-dealer for a total of $500,000, inclusive of maximum cash coverage of $250,000. For any claims above these limits, the customer becomes a general creditor of the failed broker-dealer. This customer has $160,000 of securities (covered in full) and $340,000 of cash (covered only for $250,000), for total coverage of $410,000. For the remaining $90,000 of cash not covered, the customer becomes a general creditor. The Firm Element component of the "Continuing Education" requirement Is administered by the FINRA-member employer and must be completed annually
A customer wishes to place a buy order for a security that has not been registered in the state. The security may be purchased if the security Is exempt from state registration. Falls under a "Blue Chip" exemption by being listed on a recognized national stock exchange. Generally, securities that are exempt from Federal registration are also exempt from state registration. For example, government and municipal securities do not have to be registered in each state. States also allow for "Blue Chip" exemptions for non-exempt securities. Under this exemption, stocks listed on national stock exchanges are exempt from state registration. The logic for this exemption is that the issuer must meet stringent exchange listing and reporting requirements, as well as Federal registration requirements. Therefore, separate state registration is overkill. There is no exemption offered from state registration for securities trading for at least 1 year or securities traded by at least 2 market makers. A registered representative with a wealthy clientele has many clients that are officers of publicly held companies. The registered representative receives an order from the executive vice-president of ADAP Corp. to sell 4% of the outstanding shares. Prior to placing this order, the registered representative may, in his or her personal account, buy ADAP common stock. Front running a customer order that is likely to have a market impact is a prohibited practice. This officer is selling 4% of the outstanding shares, which is likely to depress the price of the stock. Prior to placing the order, the representative cannot personally take a position in that stock to profit from the likely market decline - thus, the representative cannot sell that stock short, cannot buy put options on the stock, and cannot sell call options on the stock. There is no reason why the representative cannot buy that stock for his or her personal account - since this is profitable if the stock rises, and will result in a loss if the stock falls. The definition of a "short swing" profit under the Securities Exchange Act of 1934 is a completed round turn trade effected at a profit within six months by an insider. A "short swing" profit is defined as one achieved by an insider (officer, director, or 10% shareholder) trading that company's stock within a six month period. Short swing profits must be returned to the corporation under the Act. Under SEC rules, a representative would be considered to be delivering a "research report" to customers if the communication analyzes securities and provides a basis upon which to make an investment decision and is distributed to 15 or more clients Under the "penny stock rule," an established customer that is exempt from the rule is defined as a person who has effected a securities transaction or made a deposit of funds or securities with that broker-dealer more than 1 year previously. Suitability statements are not required under the "penny stock rule" for so-called "established customers." These are customers who have either had cash or securities in custody of that broker-dealer for at least 1 year; or customers who have bought 3 or more "penny stock" issues previously from that broker-dealer. When is a foreign broker-dealer permitted to solicit U.S. based clients If the foreign broker-dealer establishes an SEC-registered U.S. subsidiary. If the foreign broker-dealer only deals with major institutional investors. A registered representative (“rr”) is an MFP of a municipal securities firm that is an underwriter for that municipal issuer. The MFP volunteers his time to the election campaign of a candidate for mayor of the issuer by offering to host a reception. The “rr,” who is entitled to vote in the election, does not make a contribution to the elected official’s campaign, but does pay $300 of “out of pocket” expenses for the cost of the reception. The $300 of “out of pocket” expenses exceeds the MSRB’s political contribution limit and will result in the municipal securities firm being banned as an underwriter for that issuer for 2 years Registered representatives may be compensated based on
Which of the following actions taken by a fiduciary would NOT be consistent with the obligations imposed under the "Prudent Man Rule"? A. Diversifying a fixed income portfolio with securities of varying maturities B. Selecting AA rated corporate convertible bond investments to meet an investment objective of both income and capital gains C. Investing in small capitalization unlisted new issue investments for long term growth D. Writing covered calls against securities positions held in the account to increase income C. The "prudent man rule" is part of Uniform State Law, and it requires fiduciaries to make investments for accounts under their control as would a "prudent man." This makes sense, since fiduciaries are investing for the benefit of others, and the investments are supposed to provide a long term future benefit to these persons. Investing in unproven, speculative new issues would not be consistent with the "prudent man rule." Diversifying a portfolio, investing in AA rated convertible bonds to meet an objective of both income and growth, and writing covered calls against stock positions are all proven, prudent investment strategies. A registered representative in Minnesota has a customer that has recently moved to Texas. The registered representative Must be registered in Texas in order to deal with the customer. In order to deal with a customer in a Texas, the representative must be registered in the State of Texas. An exception is permitted if the representative were only accepting unsolicited trades from customers in Texas, but this is not mentioned in the question. Also note that because the representative is physically in the State of Minnesota, he or she must be registered in Minnesota as well. If an unsolicited facsimile is sent to a potential client, all of the following information must be included
If a registered representative solicits an order from a new customer to purchase a "penny stock" that is trading over-the-counter, which procedure is required? Have the customer sign a statement that he or she understands the risks involved prior to executing the order the use of a "red herring" preliminary prospectus? A preliminary prospectus may be sent to a prospective customer once the issue has entered into the 20 day cooling off period. The use of the preliminary prospectus does not constitute an offer to sell under the Securities Act of 1933. Under MSRB rules, any claim, dispute, or controversy shall be submitted to arbitration at the instance of all of the following
All of the following statements are true during the period that a non-exempt new issue is "in registration"
Under FINRA rules, copies of order tickets must be kept for prohibited practices under FINRA rules
regarding corporate reports sent to shareholders? The 10K report consists of the annual financial statements. The 10Q report consists of the quarterly financial statements. Under Regulation D regarding private placements, how many non-accredited investors are allowed to invest in the offering Which of these is the most appropriate action for a registered representative to take after receiving a written complaint letter from a client?Which of these is the most appropriate action for a registered representative to take after receiving a written complaint letter from a client? Turn the letter over to the representative's supervisor.
Which of the following actions by a registered representative are prohibited under FINRA rules?prohibited. FINRA prohibits registered representatives from either lending money personally to a customer or borrowing money personally from a customer.
What happens when you file a complaint with FINRA?Through its Complaint Program, FINRA investigates complaints against brokerage firms and their employees. FINRA is empowered to take disciplinary actions against brokers and their firms. Sanctions may include fines, suspensions, a barring from the securities industry or other appropriate sanctions.
Which of the following is true regarding a registered person who wishes to move her registration from one broker/dealer to another?Terms in this set (12) Which of the following is true regarding a registered person who wishes to move her registration from one broker-dealer to another? In no circumstances can a registration be transferred from one firm to another.
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Which of the following actions should be taken if a registered representative RR receives a written complaint from a customer?
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