Series 24 Complaints and Disputes Practice Questions

Correct answer: B. Quarterly

Rule 4530 requires firms to report statistical and summary information regarding written customer complaints to FINRA on a quarterly basis, separate from the requirement to report specified individual events (e.g., certain findings, criminal charges) within 30 days of knowledge of the event.

• A. Incorrect. This reporting is not tied to Form BD amendment timing.
• B. Correct. Quarterly reporting of complaint statistics is the Rule 4530 standard.
• C. Incorrect. This is a proactive, periodic filing requirement, not something produced only on request.
• D. Incorrect. Monthly is not the required frequency, and it is unrelated to blotter reconciliation.

Correct answer: A. More than 6 years from the occurrence or event giving rise to the claim

The Eligibility Rule (FINRA Rule 12206) bars a claim from arbitration if it is filed more than six years after the occurrence or event giving rise to the claim — the clock runs from the underlying event itself, not from when the customer discovered the loss or damage. This is a forum-eligibility limitation, distinct from any state-law statute of limitations that might separately apply to the underlying cause of action.

• A. Correct. Rule 12206 bars arbitration of claims filed more than six years after the occurrence or event giving rise to the claim — this is measured from the underlying event, not from discovery.
• B. Two years is too short and, more importantly, the eligibility clock runs from the occurrence or event itself, not from when the customer discovered the loss.
• C. The six-year period is right, but Rule 12206 measures from the occurrence or event giving rise to the claim, not from the date the customer first discovered the loss -- using a discovery trigger misstates the rule.
• D. Account closure isn't the triggering event under Rule 12206 — eligibility is measured from the occurrence giving rise to the claim, regardless of when the account was later closed.

Correct answer: D. Pursue the dismissed claim in court and withdraw the related claims without prejudice to join them there

Rule 12206(b) states that dismissal of a claim under the eligibility rule does not prohibit a party from pursuing it in court. The party that moved to dismiss agrees that the non-moving party may withdraw related claims without prejudice and pursue all claims in court.

• A. An eligibility dismissal is not a merits judgment, so res judicata does not bar the customer from bringing the claim in court.
• B. Refiling would not cure ineligibility, and the rule does not provide a 30-day refiling right.
• C. Mediation is voluntary and is not the customer's sole remedy; a court action remains available.
• D. Correct: the customer may go to court and may withdraw related claims without prejudice.

Correct answer: B. 45 days

Under FINRA Rule 12303, each respondent must file an answer within 45 days of receipt of the statement of claim. Missing the deadline can lead to sanctions or a default.

• A. Twenty days is shorter than the Code allows.
• B. Correct: the answer is due within 45 days of receiving the statement of claim.
• C. Thirty days is not the deadline in the Customer Code.
• D. Sixty days is longer than the deadline.