Chapter I Flashcards
Describe the evolution of the mutual fund industry and the impact mutual funds have had on the financial services marketplace.
Explain the value of becoming a licensed mutual fund sales representative and how it prepares you to deal more confidently with clients to protect their interests and provide quality advice.
Discuss the importance of providing excellent client service.
Identify the legal, ethical and professional responsibilities of a mutual fund sales representative.
List and describe the five components of knowing your client.
Describe the important role a mutual fund sales representative plays in the client relationship and how this role differs from that of a financial planner.
What is a mutual fund?
Why does acquiring your license to deal with clients as a mutual fund representative have value?
What does excellent client service mean?
Can you name three rewards for providing excellent client service?
Can you name and describe three important responsibilities when dealing with clients?
What does compliance mean?
What is ethics?
What does ethical conduct require?
Can you describe three elements of suitability?
What is the Know Your Client (KYC) rule?
Can you name five things you want to know about your client?
What does Know Your Product refer to?
What does net worth refer to?
Identify the individual responsible for helping clients to establish household budgets and savings goals.
FP
Identify the person responsible for investments in a fund according to the fund’s policies and objectives and based on a particular investing style.
Profesional Money managers
Identify one of the criteria that must be evaluated in determining the suitability of an investment for a client.
B. Client’s investment objectives.
Define the term that is used to refer to the requirement to follow all legal requirements and dealer policies.
Compliance
Anya is evaluating the net worth and determining the investment objectives of a new client. Identify the requirement that Anya is completing.
Ethical responsibilty
