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30 Cards in this Set
- Front
- Back
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Federal covered advisers file form _____ to register through the ____ system |
ADV through the IARD system |
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People excluded from the IA definition |
Banks Professionals providing incidental advice Broker dealers and registered reps (as long as not doing IA business) Publishers who provide general info |
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Professionals providing incidental advice include |
Lawyers accountants teachers engineers |
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Local exemption |
Available to an investment adviser who's clients are all residents of the state in which the adviser maintains its principle office |
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Insurance exemption |
Available to advisers who's only clients are insurance companies |
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Venture capital exemption |
Available to advises who solely advise venture capital funds |
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Venture capital fund |
A fund that manages money of investors who want a stake in a startup |
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Brochure rule |
Requires advised to provide each client with a written disclosure |
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Brochure rule |
Requires advised to provide each client with a written disclosure |
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A federal covered adviser that is entering a contract with a client must deliver its brochure |
Before or at the time it enters into an IA contract w a client |
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Brochure rule |
Requires advised to provide each client with a written disclosure |
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A federal covered adviser that is entering a contract with a client must deliver its brochure |
Before or at the time it enters into an IA contract w a client |
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FCA's are not required to provide a brochure to |
Registered investment companies
Clients w impersonal advisory services |
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Brochure rule |
Requires advised to provide each client with a written disclosure |
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A federal covered adviser that is entering a contract with a client must deliver its brochure |
Before or at the time it enters into an IA contract w a client |
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FCA's are not required to provide a brochure to |
Registered investment companies
Clients w impersonal advisory services |
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Impersonal advisory services means |
Providing advice that is not tailored to a clients specific objectives
Providing basic investment advice |
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Fulcrum fee |
Two parts:
1. Base fee 2. Performance based fee that increases or decreases based on the clients portfolio compared to a benchmark |
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Name 3 types of clients that are allowed to be charged performance based fees |
1. Registered investment companies 2. Clients who are not US residents 3. Qualified clients |
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Fulcrum fee |
Two parts:
1. Base fee 2. Performance based fee that increases or decreases based on the clients portfolio compared to a benchmark |
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Name 3 types of clients that are allowed to be charged performance based fees |
1. Registered investment companies 2. Clients who are not US residents 3. Qualified clients |
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Qualified clients include |
Have $1M of AUM or have a net worth of $2M |
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Fulcrum fee |
Two parts:
1. Base fee 2. Performance based fee that increases or decreases based on the clients portfolio compared to a benchmark |
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Name 3 types of clients that are allowed to be charged performance based fees |
1. Registered investment companies 2. Clients who are not US residents 3. Qualified clients |
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Qualified clients include |
Have $1M of AUM or have a net worth of $2M |
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If a customer mails funds to an IARs home and asks for the funds to be deposited how many days does the IAR have until he is considered to be in custody of those funds? |
Three days |
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Solicitors are allowed to be ____ |
Paid |
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Solicitors are allowed to be ____ |
Paid |
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Oral discretion can be given for up to____ business days |
Ten |
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Performance based fees will likely cause an adviser to _____ with a clients money |
Take greater risk to generate more fees |
