General Principles Chapter 9 Flashcards
Financial Services Regulations and Requirements
SEC/State Regulatory Requirements
less than $100 million, register state. over $100, with the SEC. may have to register in multiple states
Investment Advisor Definition
3 pronged: ABC
- provides advice
- is in the business of providing such services
- is compensated for those services
Exemptions to Filing as IA
BLAT
banks
laywer/account/engineer/teacher - performance of advisory services is incidental to business
Family Office
services provided only to family members, owned an controlled by family members, not in public as investment advisor
Financial Reform Bill
sec barre from oversight of equity indexed equities. states regulate.
Registration with the SEC
file adv
pay filing fee 150
submit adv part 1 and schedule 1 updates
ADV Part 1 Info
applicant, background, locations, forms of business, disciplinary action, investment philosophy
ADV Part 2: Brochure
nature of ria business structure, info about fees, services, conflict of interest, related persons
Form CRS
uniform disclosure document - enhance investor protection w/ succinct and relevant info to retail investors
ADV W
cease operations by filing form. keep records for 5+ years after closure
Finra Qualifications
SIE - securities industry essentials
before all series exams except 65
Series 7
sell all securities except commodities and some options
Series 63
meets all requirements to be licensed in states other than state of residence
Series 65
registered investment advisor - state requirement
series 66
uniform combined state law exam (combines eries 63 and 65)