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.

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

• Source: FINRA Rule 4530, accessed October 2026

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.

• AA. 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.
• BB. 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.
• CC. 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.
• DD. 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.

• Source: Exam outline: FINRA Series 24 Content Outline, accessed October 2026

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.

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

• Source: Exam outline: FINRA Series 24 Content Outline, accessed October 2026

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.

• AA. Twenty days is shorter than the Code allows.
• BB. Correct: the answer is due within 45 days of receiving the statement of claim.
• CC. Thirty days is not the deadline in the Customer Code.
• DD. Sixty days is longer than the deadline.

• Source: Exam outline: FINRA Series 24 Content Outline, accessed October 2026

Correct answer: D. Mediation is a voluntary, non-binding process in which a neutral third party helps the parties negotiate a mutually acceptable resolution

Mediation under FINRA's Code of Mediation Procedure is a voluntary, non-binding process in which a neutral mediator facilitates negotiation between the parties toward a mutually acceptable settlement; it produces no binding award and either party may withdraw at any time. This contrasts with arbitration, which results in a final, binding award enforceable in court. Mediation can be pursued at any stage, including alongside a pending arbitration, not only after an award is rendered.

• AA. Unlike an arbitration award, a mediated resolution is not binding or court-enforceable unless and until the parties separately execute a settlement agreement.
• BB. Because mediation is voluntary, either party may withdraw at any time before a resolution is reached.
• CC. Mediation can be initiated at essentially any point in a dispute (including alongside or instead of arbitration) and does not require a prior arbitration award.
• DD. Mediation is accurately described as a voluntary, non-binding process where a neutral mediator facilitates negotiation toward a mutually acceptable resolution.

• Source: Exam outline: FINRA Series 24 Content Outline, accessed October 2026

Correct answer: D. A claim asserted as part of a putative or certified class action

FINRA's Code of Arbitration Procedure includes a class action carve-out: claims filed as part of a putative or certified class action, or claims that are members of a putative class until class certification is denied, decertified, or the member opts out, cannot be forced into arbitration under a predispute arbitration clause. Individual claims like excessive trading, unauthorized trading, or breach of fiduciary duty tied to a single account do not fall under this carve-out and remain arbitrable.

• AA. A claim alleging excessive, unsuitable trading in a discretionary account is a standard customer dispute and is subject to mandatory arbitration under a predispute agreement.
• BB. A claim alleging breach of fiduciary duty tied to a single account is an individual dispute, not a class claim, and remains subject to mandatory arbitration.
• CC. A claim alleging unauthorized trading is an ordinary individual customer dispute and remains subject to mandatory arbitration.
• DD. Correct. FINRA's Code exempts claims asserted as part of a putative or certified class action from mandatory arbitration under a predispute arbitration agreement. Class-action claims proceed in court instead.

• Source: FINRA Rule 2268 (Requirements When Using Predispute Arbitration Agreements for Customer Accounts), accessed October 2026