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57 Cards in this Set
- Front
- Back
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48 hours before signing contract
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give the ia brochure to customer( no right to terminate)
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5 biz days
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customer can terminate IA contract, ONLY if the brochure is given on the same day the contract is signed& # of days a registration statement must be on file with the state for notice filing in order for issue to be declared effective by the state ( assumes SEC reg is effective)
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10 biz days
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of a client changes their state of residence, the RR must file an application to register in the new state. the period is 10 biz days from the later of: 1) a transaction with the client in the new state, or 2) the discovery by the RR of the clients change in residence
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10 biz days
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# of days a registration statement must be on file with the state for registration by coordination in order for the issue to be declared effective by the state ( assumes SEC reg is effective)
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10 biz days
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IAs may accept verbal discretion if confirmed in writing within this time period
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30 biz days
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exception of BD agent if selling to a non-resident customer (temporary)
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30 business days
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number of days the investor has to respond to letter of recission in order to sue
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noon on the 30th day after filing
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a persons registration is effective
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60 days
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number of days to appeal a cease and desist order
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60 days
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number of days to appeal a cease and desist order
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270 days
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max maturity of commercial paper and BA's
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DEC 31
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reg for ALL PERSONS expires (unless renewed)
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1 year from efective day
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a SECURITYS reg expires (unless renewed)
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annually
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must offer to deliver brochure to IA customers
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3 years after the sale of security or giving advice, or 2 years after discovery of violation
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statute of limitation for civil proceedings (whichever comes first)
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3 years
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record retention requirement for a BD firm ( most records)
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5 years
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record retention for an IA ( first 2 years in principle office)
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5 years
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statute of limitation for criminal proceedings
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6 years
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retention requirement for certain BD records (such as trade blotters, principal designation records, and records or original entrey)
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life of firm
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retention for certain BD records( such as stock certificates, partnership papers articles of incorporation, and mi nutes of BOD meetings)
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net worth for a client to be considered qualified under the USA
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1 Million
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AUM for client to be considered qualified under the IA act of 1940 ( for fed covered advisers)
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1 million
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net worth for a client to be considered qualified under the IA under the IA act of 1940 ( for fed covered advisers
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2 million
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IA firm must be registered with the state
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less than
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IA firm can register with the state or SEC
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100 million to 110 mull AUM
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110 million AUM
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IA firm must be registered with the SEC as fed covered adviser
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Investment Advisory contracts must disclose the following
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1. Compensation cannot be based on capital gains 2.A client’s account cannot be assigned to another adviser without the client’s consent 3.Investment Advisers organized as a partnership must notify clients of a change in ownership promptly after the change
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who does not approve securities, firms, or personnel?
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The Administrator, the administrator only grants registration and clear securities for public distribution.
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A person’s registration can be denied if the person was convicted of a securities or money related crime or any felony within the past
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10 years (120 months)
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An agent who works for a Broker-dealer and sells securities in exempt transactions must be
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registered as an agent
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12b-1 fees are
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annual marketing expenses paid by investors in a mutual fund based on a percentage of their holdings in the fund
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T or F-Agents cannot make a loan to a client to satisfy a margin call
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true
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A red herring (or preliminary prospectus) is used by the underwriter to collect
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indications of interest and help the underwriter gauge demand for securities
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Variable annuities sold by insurance companies are securities, and are ___ exempt from registration at the ___ level
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not exempt at the state level
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An isolated non-issuer transaction is
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(a transaction where the proceeds go to anyone other than the issuer) is an exempt transaction
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A participation in a pension plan is a ___
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security, The pension plan itself is not a security
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An issuer can always amend an effective registration statement to increase
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the size of the offering, but not the price or information concerning the underwriters
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The only time a security’s rating is considered under the USA is determining the exemption of _____
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commercial paper,The rating must be one of the top three in order to receive the exemption from state registration
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The custodian in a UGMA/UTMA account is NOT a ____ for the purposes of an exempt transaction
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fiduciary
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If an investment adviser is federally covered then states do not have the right to examine their books T or F
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true
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Agents who exercise discretion over customer accounts or have custody over customer assets need to be bonded, as do_______ but not, ___
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BD's and IA's, but not IAR’s
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endowment policy is not a
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security
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An offer sent via mail is made in a state when it either originates OR is directed and received in a state
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(e.g. a piece of mail that originates in state A and is directed and received in state B would be an offer in both states).
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The _____ determines what information a broker-dealer in a given state must supply in its application or renewal@ administrator$ If an agent leaves a broker-dealer @ both the agent and the broker-dealer must immediately notify the Administrator$ When an agent leaves a broker-dealer to join another broker-dealer@ all 3 persons (new and old broker-dealer
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and agent) must notify the Administrator$ When an IAR leaves a Federal Covered Adviser@ the IAR must tell the Administrator $When an IAR leaves a state-registered adviser@ the adviser tells the Administrator. $ A firm must treat instant messages as written correspondence and maintain them for@ 3 years.$ Securities issued by Canadian municipalities (i.e. province or town) @are exempt securities $ Advertising is not permitted for@ private placements$
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$Any active partner
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officer or director of a BD or IA is automatically registered as an agent or IAR@ when the firm registers in the state.This would not apply to silent partners or partners not in the securities business. $ If a rep leaves a Federal Covered Advisor
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LATE@ excluded from def of ia
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if their advice is incidental to tehir profession and do not charge sep fee for their advice$ b/ds always post@ surety bonds
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stop order
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aimed at securities reg
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cease and desist
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aimed at persons
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special subscription form
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the admin require that secrs by qual or coord be sold using this specfic form, the admin may also require a signed form of each contract be filed with the admin and retained for up to 3 years
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incorporation by reference
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usa, generally it says a doc filed about the same security or issuer within the previous 5 years can simply be referenced in a new filing without having to include copy of the previous filing
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2 levels of exemptions with registering securities
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section 402(b) exemptions- must be granted individually for each trans & 402(a)- exemptions apply to every transaction of a security
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if the exam mentions "an underwriter" or "primary mkt" usually referring to
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an issuer transaction
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generally sales of mf shares are considered
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issuer transactions
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if mf decides to sell some securs that are owned by the fund
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considered non issuer transaction
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according to the usa an ia may be disclipined bc of
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insolvency
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IA
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form adv, net worth
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b/ds
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net cap, can contain testimonials
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