Answer: The Best Answer is B

Rationale: A member firm's principal should follow up on customer complaints in a timely manner, but no specific time frame is given. However, if the complaint moves into arbitration, a response to FINRA requests is required. Moreover, U4 and U5 forms must be updated with customer complaint information in a timely manner.

Answer: The Best Answer is D

Rationale: Clerical and "ministerial" staff can receive exemptions from being fingerprinted under Rule 17f-2 if they are not directly involved in the sales process or the handling of client assets.

Answer: The Best Answer is D

Rationale: According to the Act of 1934, a broker-dealer can take either side in a trade. A dealer may sell stock they hold in inventory to you at a markup. A broker holds no inventory; they charge a commission for finding a person or company willing to sell the stock to you. Another name for a broker in this instance is "agent."

Answer: C

Rationale: FINRA rules limit 12b-1 fees to 1% of net assets annually and service fees to 0.25% of net assets annually.

Answer: B

Rationale: The “anti-reciprocal” rule covers the relationship between a fund and the broker-dealers in the fund’s selling group. The intent is to stop the fund from giving a broker-dealer in the selling group an “extra incentive” to “push” that fund’s shares on its unsuspecting customers. Thus, the fund cannot direct its portfolio trades to a broker in the selling group (giving that broker commission income) in return for that broker having sold more of the fund’s shares. Note that the rule has nothing to do with the relationship between a member firm in the fund selling group and that firm’s registered representatives. Registered representatives are supposed to solicit customers to buy fund shares and receive compensation for this from the member (not from the fund).