'34 ACT Flashcards
The SEC has jurisdiction to regulate the following entities to maintain a fair and orderly market for investors:
1) National securities exchanges, 2) The OTC market, 3)Registered self – regulatory organizations (SRO) such as FINRA and the MSRB, 4) transfer agents, 5) broker/dealers and their associated persons
Filing periodic reports (e.g., Form 10 – K, form 10 – Q, etc.)., is required of publicly held companies and broker – dealers by which securities act?
The Securities Exchange Act of 1934
According to rule 13 D., Persons who own x% of outstanding stock listed on a national securities exchange must file a report with the SEC within 10 days?
> 5%
Rules regarding the extension of credit on securities transactions are set by which entity?
The Federal Reserve Bank
To register a security listed on an exchange, information must be filed regarding the following:
The issuer, any person who directly/indirectly controls or is controlled by the issuer, the issue is balance sheet for the last three years, names of officers directors and underwriters, organization, financial structure, and the nature of the business
Filing which form accomplishes the registration of a broker – dealer?
Form BD
SEC investigations determine what?
SEC investigations determine if any federal securities law or rule has been or is about to be violated. The SEC may investigate and override general, the MS RB, or any national exchange
Statutory disqualification bars which persons from the securities industry?
Persons convicted of a securities misdemeanor in the last 10 years is subject to statutory disqualification which effectively bars that person from the securities industry.
What is the penalty for trading on material and non-public information?
The penalty for trading on material nonpublic information is three times the profit gained or lost avoided.
Characteristics of IA fees:
Cannot be excessive compared to other IAs providing similar services, may not be conditional away if the account value declines, can be calculated on the basis of the value of the account on a set date or for a certain period of time.
What are SECURITIES iNFORMATION PROCESSORS?
“Securities information processors” such as Bloomberg, are companies that provide information about securities or quotations on a current and continuous basis.
SEC rule 13 F requires:
Institutional investment managers managing an account with the value of more than $100 million in securities must file quarterly reports with the SEC
Who are “INSIDERS”?
Insiders are officers, directors, and principal stockholders who own 10% or more of the stock of the company.
SEC RULE 17a-3
SEC rule 17 a – 3 requires broker-dealers to maintain applications (U-4) about their agents and their backgrounds
Under the 34 act, state administrators are prohibited from:
Making and keeping reporting requirements for broker-dealers that differ from or are in addition to requirements under the Securities Exchange Act of 1934.
