CH9. Client Account Flashcards
The Philippines contributes its share and play a vital role in the global fight against money laundering. Which Republic Act known as The Anti-Money Laundering Act was the revised and when did the revised law took effect?
(a) RA 9610 effective October 17, 2001
(b) RA 9160 effective September 29, 2001
(c) RA 9491 effective September 7, 2003
(d) RA 9194 effective March 23, 2003
(e) RA 9194 effective March 7, 2003
(d) RA 9194 effective March 23, 2003
Which of the following institution is not mandated by the AMLA to submit covered and suspicious transaction reports to the AMLC:
(a) insurance companies
(b) pre-need companies
(c) banks
(d) securities dealers
(e) none of the above
(e) none of the above
Which of the following transactions are not covered or suspicious transactions per AMLA:
(a) the transaction amount is more than Php500,000.00
(b) the client is not properly identified
(c) there is a deviation to client profile and historical transaction
(d) the amount of transaction was Php400,000.00 but not commensurate to the financial capacity of the client
(e) none of the above
(e) none of the above
The following statements are salient features of the AMLA, except:
(a) Criminalizes money laundering
(b) Creates a financial intelligence unit
(c) Imposes requirements on customer identification, record keeping and reporting of covered and suspicious transactions
(d) Provides for freezing/seizure/forfeiture/recovery of dirty money/property
(e) All of the above
(e) All of the above
What is the penalty for knowingly transacting or attempting to transact any monetary instrument/property which represents, involves or relates to the proceeds of an unlawful activity?
(a) 4 to 7 years imprisonment and a fine of not less than Php1.5M but not more than Php3M.
(b) 7 to 14 years imprisonment and a fine of not less than Php3M but not more than twice the value of the monetary instrument/property.
(c) 6 months to 4 years imprisonment or a fine of not less than Php100,000 but not more than Php500,000, or both.
(d) none of the above
(e) all of the above
(b) 7 to 14 years imprisonment and a fine of not less than Php3M but not more than twice the value of the monetary instrument/property.
When can a broker dealer effect a transaction on behalf of a client?
(a) Anytime the client signs a standard client agreement
(b) Anytime a client opens an account even before a client agreement is signed
(c) When the client signs a standard client agreement and places an order with the broker dealer
(d) When the client places an order with the broker dealer even if the client has not signed the client agreement
(c) When the client signs a standard client agreement and places an order with the broker dealer
Which of the following is information that a client agreement must contain:
(a) the full name and registered address of the broker dealer
(b) the full name and address of the client
(c) a description of the nature of services to be provided to or available to the client
(d) a risk disclosure statement
(e) all of the above
(e) all of the above
All of the following statements are true, except:
(a) In addition to the requirement that the client agreement be in a language that is understood by the client, the registered person who deals with the client must still explain to the client the contents of the agreement
(b) Since the client agreement is in a language that is understood by the client, the registered person who deals with the client is not required to explain the contents of the agreement to the client anymore.
(c) a written client agreement must be entered into before the broker dealer can provide services to a client
(d) A broker dealer shall not effect transactions with the client or a person designated by the client unless a written authorization by the client to do so is obtained and on file
(e) all of the above statements are true
(b) Since the client agreement is in a language that is understood by the client, the registered person who deals with the client is not required to explain the contents of the agreement to the client anymore.
For purposes of SRC Rule 52.1, which of the following account does not fall under the classification of an institutional account:
(a) A bank
(b) An insurance company
(c) A registered investment company;
(d) Any other entity set forth in Section 10.1(l) of the Code as a qualified buyer;
(e) Any other entity (whether a natural person, corporation, partnership, trust or otherwise) with total assets of at least Php1,000,000,000; provided, however, that the Broker Dealer shall obtain from such entity a declaration, under oath, confirming ownership of such assets.
(e) Any other entity (whether a natural person, corporation, partnership, trust or otherwise) with total assets of at least Php1,000,000,000; provided, however, that the Broker Dealer shall obtain from such entity a declaration, under oath, confirming ownership of such assets.
Under SRC Rule 52.1, the following statements are true, except:
(a) The broker dealer can create new accounts without meeting the client face to face as long as all the required customer information is provided
(b) Numbered accounts are allowed for trading purposes provided that the owner fills up the CAIF with his identity clearly indicated in the form.
(c) Anonymous accounts, accounts under fictitious names, and all other similar accounts shall be absolutely prohibited.
(d) If more than one party is named on the account, new account will be obtained for each party on the account
(e) None of the above
(a) The broker dealer can create new accounts without meeting the client face to face as long as all the required customer information is provided
Which of the following information is not required for a non institutional account?
(a) Source of funds
(b) List of Directors
(c) The customer’s investment objective and other related information concerning the customer’s financial situation and needs;
(d) Occupation of customer and name, address and telephone number of employer;
(e) Customer’s tax identification number, Social Security System number
or Government and Insurance System number
(b) List of Directors
CAIF means:
(a) Client Account Information File
(b) Customer Account Information Form
(c) Client Agreement Information File
(d) Customer Agreement Information Form
(e) Customer Account Information File
(b) Customer Account Information Form
For Corporate accounts, the following information is/are required, except:
(a) By-laws and Articles of incorporation
(b) List of Directors
(c) List of all stockholders
(d) Secretary’s Certificate of board resolution authorizing the opening of the account with the Broker Dealer firm;
(e) financial information
(c) List of all stockholders
When is a customer order considered “solicited”?
(a) when the client initiates the phone call
(b) when the salesman initiates the phone call
(c) when the client mentions the name of the security first
(d) when the salesman mentions the name of the security first
(e) None of the above
(c) when the client mentions the name of the security first
In general, how often must a broker dealer provide customers with a statement of account?
(a) monthly
(b) every 60 days
(c) quarterly
(d) upon request by client
(a) monthly
