General Principles Chapter 9 Flashcards

Financial Services Regulations and Requirements

1
Q

SEC/State Regulatory Requirements

A

less than $100 million, register state. over $100, with the SEC. may have to register in multiple states

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2
Q

Investment Advisor Definition

A

3 pronged: ABC

  1. provides advice
  2. is in the business of providing such services
  3. is compensated for those services
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3
Q

Exemptions to Filing as IA

A

BLAT
banks
laywer/account/engineer/teacher - performance of advisory services is incidental to business

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4
Q

Family Office

A

services provided only to family members, owned an controlled by family members, not in public as investment advisor

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5
Q

Financial Reform Bill

A

sec barre from oversight of equity indexed equities. states regulate.

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6
Q

Registration with the SEC

A

file adv
pay filing fee 150
submit adv part 1 and schedule 1 updates

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7
Q

ADV Part 1 Info

A

applicant, background, locations, forms of business, disciplinary action, investment philosophy

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8
Q

ADV Part 2: Brochure

A

nature of ria business structure, info about fees, services, conflict of interest, related persons

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9
Q

Form CRS

A

uniform disclosure document - enhance investor protection w/ succinct and relevant info to retail investors

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10
Q

ADV W

A

cease operations by filing form. keep records for 5+ years after closure

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11
Q

Finra Qualifications

A

SIE - securities industry essentials
before all series exams except 65

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12
Q

Series 7

A

sell all securities except commodities and some options

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13
Q

Series 63

A

meets all requirements to be licensed in states other than state of residence

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14
Q

Series 65

A

registered investment advisor - state requirement

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15
Q

series 66

A

uniform combined state law exam (combines eries 63 and 65)

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16
Q

Finra Registration

A
  1. associates with broker dealer firm
    register with finra thru bd on u4
    pass exams
17
Q

Sell Variable Contracts

A

series 6 or 7
variable state life insurance license