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59 Cards in this Set
- Front
- Back
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Enforcement agency for broker-dealers |
FINRA and SEC |
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Enforcement agency for national banks and their subsidiaries
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Comptroller of the currency |
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Enforcement agency for bank dealers for state and local banks that are part of the Federal Reserve |
Federal Reserve Board |
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Enforcement agency for bank dealers for state and local banks that are not part of the Federal Reserve |
FDIC |
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Enforcement agency for other municipal securities dealers (not broker-dealers, or banks) |
SEC |
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A Shares - Price - Sales Charge - Annual Fees - Appropriate For |
- Price: NAV + front end sales charge - SC: Front-end, may be reduced through breakpoints - Fees: Lower than B shares or C shares - Good for: Accounts large enough to benefit from breakpoints |
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B Shares - Price - Sales Charge - Annual Fees - Appropriate For |
- Price: NAV - SC: Back-end if not held for time stated in prospectus - Fees: Higher than A shares although B shares may convert to A shares if held long enough - Good for: Smaller accounts with investors who intend to hold for a longer time( e.g., college is a long way off) |
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C Shares - Price - Sales charge - Annual fees - Appropriate for |
- Price: NAV - SC: No front-end charge; no back-end if kept more than one year - Fees: High than for A shares or B shares - Good for: Smaller investors who do not plan to hold for along time (e.g. college is coming soon) |
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Who can review and approve new accounts that will transact in municipal securities? |
Municipal Securities Principal (53) Municipal Securities Sales Principal (9/10) General Securities Principal (24) Municipal Fund Securities Principal (51) |
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Who can review accounts that will transact in municipal securities for abuse and irregularities? |
Municipal Securities Principal (53) Municipal Securities Sales Principal (9/10) Municipal Fund Securities Principal (51) |
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Who can approve of municipal transactions (final approval of orders)? |
Municipal Securities Principal (53) Municipal Fund Securities Principal (51) |
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Who can oversee compliance with applicable MSRB rules? |
Municipal Securities Principal (53) Municipal Fund Securities Principal (51) |
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Who can follow up on complaints regarding municipal securities activities? |
Municipal Securities Principal (53) Municipal Securities Sales Principal (9/10) Municipal Fund Securities Principal (51) |
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Who can periodicially review each office where municipal securities activities take place? |
Municipal Securities Principal (53) Municipal Fund Securities Principal (51) |
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Who can ensure maintenance and preservation of books and records as required by MSRB rules G-8 and G-9? |
Municipal Securities Principal (53) Municipal Securities Sales Principal (9/10) Municipal Fund Securities Principal (51) |
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Who can oversee clearance, processing, and safekeeping of municipal securities? |
Municipal Securities Principal (53) Municipal Fund Securities Principal (51) |
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Who can review municipal securities advertisements? |
Municipal Securities Principal (53) General Securities Principal (24) Municipal Fund Securities Principal (51) |
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What can the municipal securities sales principal do? |
- Review and approve new accounts that will transact in municipal securities - Review accounts that will transact in municipal securities for abuse and irregularities - Follow up on complaints regarding municipal securities activities |
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What can the general securities principal do? |
- Review and approve new accounts that will transact in municipal securities - Ensure maintenance and preservation of books and records as required by MSRB Rules G-8 and G-9 - Review municipal securities advertisements |
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Minimum Required Information to Open a New Account |
Name Residential or business address DOB SSN/Tax ID Occupation and employer Employer's address Cash or margin accoun Any third-party or discretionary authorization Predispute arbitration agreement (if applicable) Any written authorization to release information Signed hypothecation agreement (if applicable) Registered representative's signature Principal's signature |
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Customer ID Verification Information for New Account |
Name Residential or business address DOB SSN/Tax ID |
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Customer Suitability Information |
Net Worth/Estimated Annual Income Investment Objectives Tax Status |
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Goal: Preservation of capital |
1-2 years before college Cash equivalents - Insured bank CDs - US Treasuries - Money market funds Risk: inflation |
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Goal: Preservation of principal and current income |
3-6 years before college (medium) Fixed Income Securities - US Treasuries - Agency bonds (MBSs and CMOs) - Preferred stock (equity security that acts like a debt security) - Corporate bonds Risk: interest rate, default/credit, inflation |
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Goal: Capital growth |
7-18 years before college Equity Securities - Small-cap stocks or growth funds for more aggressive growth - Large-cap stocks or large-cap funds for less aggressive growth Risk: market, business, potential loss of investment |
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Goal: Speculation |
Not appropriate for a 529 plan High yield bonds Penny stocks Derivatives, including options and futures Risk: potential loss of investment, potential loss beyond investment |
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Premium Bonds |
Price > Par Value Coupon Rate > Current Yield > YTM > YTC |
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Discount Bonds |
Price < Par Value Coupon Rate < Current Yield < YTM < YTC |
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Par Bonds |
Price = Par Value Coupon Rate = Current Yield = YTM |
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How long must dealers keep: Partnership articles Articles of incorporation Charters |
Lifetime (excluding bank dealers) |
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How long must dealers keep blotters? |
6 years |
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How long must dealers keep general and customer ledgers? |
6 years |
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How long must dealers keep securities records |
6 years |
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How long must dealers keep records concerning primary offerings? |
6 years |
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How long must dealers keep records of customer complaints? |
6 years |
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How long must dealers keep financial records subject to the net capital rule? |
6 years |
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How long must dealers keep the written record of all designated Municipal Securities Principals and their responsibilities? |
6 years |
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How long must dealers keep political contribution records? |
6 years |
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How long must dealers keep records of gifts and gratuities and compensation for services performed? |
6 years |
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How long must dealers keep stock records? |
6 years |
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How long must dealers keep consultant agreement records? |
6 years |
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How long must dealers keep records of shared secondary market accounts? |
6 years |
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How long must dealers keep records by broker's brokers of bids and offers? |
6 years |
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How long must dealers keep subsidiary records? |
4 years (Bank: 3 years) |
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How long must dealers keep records of put options and repurchase agreements? |
4 years (Bank: 3 years) |
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How long must dealers keep records of securities in transfer and securities borrowed and received? |
4 years (Bank: 3 years) |
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How long must dealers keep records of agency orders, executions, and cancellations, including discretionary orders? |
4 years (Bank: 3 years) |
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How long must dealers keep records of principal transactions, whether for own account or customer accounts? |
4 years (Bank: 3 years) |
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How long must dealers keep copies of confirmations and periodic statements? |
4 years (Bank: 3 years) |
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How long must dealers keep records of personal and financial information for each retail customer account? |
4 years (Bank: 3 years) |
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How long must dealers keep records of aggregate indebtedness, financial statements, and money balances of all brokerage accounts? |
4 years (Bank: 3 years) |
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How long must dealers keep business records including checkbooks, bank statements, wire transfers, bills receivable or payable, written and electronic communications received and sent, all written agreements entered into, and all powers of attorney? |
4 years (Bank: 3 years) |
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How long must dealers keep all fingerprinting records? |
4 years (Bank: 3 years) |
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How long must dealers keep records required by Rule G-32? |
4 years (Bank: 3 years) |
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How long must dealers keep written authorization required to obtain a negotiable paper drawn from a customer's account? |
4 years (Bank: 3 years) However, this provision shall not require maintenance of copies of negotiable instruments signed by customers |
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How long must dealers keep records of each advertisement from the date of each use? |
4 years (Bank: 3 years) |
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How long must dealers keep records of authorization to draw from a customer's account? |
4 years (Bank: 3 years) |
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How long must dealers keep records of written supervisory procedures and supervisory controls? |
4 years (Bank: 3 years) |
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How long must dealers keep records indicating compliance with continuing education requirements? |
4 years (Bank: 3 years) |
