If a bank is a government securities broker or dealer, what are its responsibilities when it obtains a Form G-FIN-4 or an MSD-4 from an employee?
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A. B. C. D.C
The CRCM exam tests the knowledge and expertise of a compliance professional in various areas, including government securities regulations. In this context, the question asks about the responsibilities of a bank that acts as a government securities broker or dealer when it obtains a Form G-FIN-4 or MSD-4 from an employee.
Form G-FIN-4 is a form that is used to register individuals as government securities brokers or dealers with the Financial Industry Regulatory Authority (FINRA). MSD-4 is a form that is used to register individuals as municipal securities representatives with the Municipal Securities Rulemaking Board (MSRB). These forms are required by regulators to gather information about the individuals' employment history, education, and disciplinary history, among other things.
The bank's responsibilities when it obtains a Form G-FIN-4 or MSD-4 from an employee are as follows:
A. Retain the form for 10 years The bank must retain the form for a period of at least 10 years from the date of the employee's termination or the date the employee ceased to be associated with the bank as a government securities broker or dealer.
B. Verify the accuracy of all information on the form The bank must review the form and verify the accuracy of all the information provided by the employee. This includes the employee's employment history, education, and disciplinary history. The bank should ensure that the employee has disclosed all material information accurately and completely.
C. Verify the accuracy of the information by inquiring of all employers of the employee for the previous three years The bank must verify the accuracy of the information provided by the employee by inquiring of all employers of the employee for the previous three years. The bank should request confirmation of the employee's employment dates, job title, and job responsibilities. The bank should also inquire about any disciplinary actions taken against the employee during that period.
D. Verify the accuracy of the information by inquiring of all employers of the employee for the previous five years This option is not correct as the bank is only required to inquire of all employers of the employee for the previous three years, not five years.
In summary, a bank that is a government securities broker or dealer must retain Form G-FIN-4 or MSD-4 for 10 years, verify the accuracy of all information on the form, and inquire of all employers of the employee for the previous three years to verify the accuracy of the information provided.