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9 Cards in this Set
- Front
- Back
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What you need to know about your client
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Financial objectives,
Financial status, Current investments, Time horizon, Risk tolerance, other points to consider(occupation, tax status) |
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Prudent Man rule
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Original concept of fiduciary responsibility
Objective was risk avoidance and capital preservation Investments were limited to those found on state legal lists |
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UPIA: Uniform Prudent Investor Act of 1994
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Replaced the prudent man rule
Examines the trade off between risk and reward Analyzes the portfolio as a whole, rather than focusing on individual securities Recognizes the needs for diversification within a portfolio Places no categorical restrictions on investments |
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Types of Trusts
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Revocable: Does not reduce estate taxes nor avoid probate; becomes effective upon donors death
Irrevocable: Will reduce estate taxes and avoid probate; effective when established and usually cannot be changed Bypass: A form of irrevocable trust designed to reduce estate taxes. |
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When must a B/D register as a investment advisor?
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Delivering financial plans to clients
Managing discretionary accounts Promoting wrap accounts |
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SEC release 1A 1092
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Developed by SEC and acceptedNASAA
Expanded the definition and included more potential candidates as IAs Sports.entertainment reps, financial planner, NRSRO, pension consultant |
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IA registration with SEC only
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$30 million or more
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IA registration with either SEC or state
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between $25 to $30 million
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IA Register with state only
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less than $25 million
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