Preparatory Course Series 30 USA American Broker Examination Branch Manager (FINRA)
Series 30 – NFA Branch Manager Exam (formerly, Branch Managers Exam – Futures)
The Series 30 exam—the NFA Branch Managers Examination—is a National Futures Association (NFA) exam administered by FINRA. The exam consists of 50 scored questions. Candidates have one hour to complete the exam. The passing score is 70%. An individual who is a Branch Office Manager and an AP must pass the Series 30 within the two years preceding their application unless:
- – they have passed the Series 30 examination within two years of the date the application is filed;
- – they are currently approved as a Branch Office Manager;
- – they were approved as a Branch Office Manager and since the last date the applicant was withdrawn as a Branch Office Manager, there has not been a period of two consecutive years during which they were not either temporary licensed as an AP or registered as an AP or FB; or
- – their sponsor is a registered broker-dealer that provides proof that they are qualified to act as a branch office manager or designated supervisor under the rules of FINRA.
The information is based on content from https://www.finra.org/registration-exams-ce/qualification-exams/series30 and https://www.nfa.futures.org/registration-membership/how-to-register/proficiency-requirements.html
General
1
Just and Equitable Principles of the Trade (NFA Compliance Rule 2-4)
2
Books and records, preparation and retention
3
Order tickets, preparation and retention
4
Written option procedures
5
Handling of customer deposits
6
NFA Compliance Rule 2-9, supervision of employees
7
Business Continuity and Disaster Recovery Plan
8
Registration requirements—who needs to be registered, sponsor verification, NFA Bylaw 1101, AP termination notices, temporary licenses
9
NFA disciplinary process
10
Reportable positions
11
NFA Arbitration Rules
12
On-site audits of branch offices
13
Bona fide hedging transactions
14
Trading on foreign exchanges
CPO/CTA General
1
Registration requirements
2
CPO/CTA Regulation (NFA Compliance Rule 2-13)
3
Communication with the Public and Promotional Material (NFA Compliance Rule 2-29)
4
Books and records to be maintained
5
Reports to customers
6
Bunched orders
CPO/CTA Disclosure Documents
1
Management and incentive fees
2
Performance records
3
How long a CPO or CTA can use a disclosure document
4
Conflicts of interest
5
Pool units purchased by principals
6
Business backgrounds of principals
7
Amendments to disclosure documents
8
Disclosure of disciplinary actions
9
NFA review of document before each use
Customer Information and Risk Disclosure ("Know your Customer") (NFA Compliance Rule 2-30)
1
Client information required
2
Responsibility to obtain additional client information
3
Risk disclosures
Disclosure by CPOs and CTAs Required for Costs Associated with Futures Transactions
1
Disclosure of upfront fees and expenses
2
Effect of upfront fees and organizational expenses on net performance
Disclosure by FCMs and IBs Required for Costs Associated with Futures Transactions
1
Explanation of fees and charges to customers
IB General
1
Accepting funds from customers
2
Guarantee agreements
3
Responsibilities of guarantor FCM
4
Minimum net capital requirements
5
Timestamping of order tickets
6
Books and records to be maintained
General Account Handling and Exchange Regulations
1
Risk Disclosure Statement
2
Margin requirements
3
Stop loss orders
4
Preparing orders
5
Proprietary accounts
6
Positions limits and reporting requirements
7
Trade confirmations
Discretionary Account Regulation
1
Requirements relating to discretionary accounts
2
Supervision and review of discretionary accounts
Communications with the Public and Promotional Material (Compliance Rule 2-29)
1
Definition of promotional material
2
Standardized sales presentations
3
Use of a third-party consulting or advertising firm
4
Reprints of articles from industry publications
5
Recordkeeping of promotional material
6
Past performance
7
Hypothetical trading results
8
Written procedures for promotional material
9
Supervisory review of promotional material
Anti-Money Laundering Requirements
1
Developing policies, procedures and internal controls
2
Customer identification program and recordkeeping
3
Detection and reporting of suspicious activity
4
Training staff to monitor trading activity
5
Recordkeeping
6
Designation of individual or individuals (“compliance officer”) to be responsible for overseeing the program
7
Employee training program Independent audit function
