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Series 53 > General Supervision > Flashcards

General Supervision Flashcards

1
Q

New account info collection

due date

A

by the completion of the first transaction (settlement)

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2
Q

New account info no recomendations

A 
name
address
occupation and name and address of employer.
SSN or TID
DOB
employed by a member firm?
Citizenship
Introducing RR signature
Approving Principal Signature
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3
Q

New account info sutiability

A 
If making recomendations
Income 
net worth 
tax status
# of Dependants
Investment objectives
risk tolerance
other holdings
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4
Q

Suitability and recommendations

A

if suitability questions can’t be completed no recommendations. Merely bringing a municipal to the view of a client is a recommendation

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5
Q

Unsuitable transactions

A

If the RR tells the client it’s an unsuitable transaction and the client insists the ticket should be marked unsolicited

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6
Q

Customer Signature

A

unless discretion or hypothication is in place no customer signature is required to open the account.
Note that a predispute arbitration clause or w9 require a signature these docs are normally separate from the account agreement.

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7
Q

Principals that can approve account opening

A

Municipal Securities Principal
Municipal securities sales principal
general securities principal

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8
Q

Institutional account definition

A
  1. bank savings and loan, insurance company or registered investment company.
  2. an investment adviser registered under the IA act of 1940 or regeistered with a securities commission
  3. any entity with total assets of at least 50M
    a natural person can qualify
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9
Q

account information

institutional clients

A 
Name
residence or principal business address
Tax ID
Suitability info, not including tax status
RR sig
Principal Sig
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10
Q

Control Relations

A

Must be disclosed at or prior to a recommendations and disclosed in writing prior to completion of the transaction. Normally it’s on the confirm

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11
Q

Disbursements

A

must be in the account name not in the name of any authorized third party.

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12
Q

not held orders

A

discretion as to price and time

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13
Q

Principal Approval of Discretionary accounts

A

Must be a Municipal Principal or Municipal sales Principal

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14
Q

Joint account signature

A

requires both parties sign

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15
Q

TOD account

Upon Death

A

Avoids probate but is included in the estate

Passes automatically to beneficiary

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16
Q

guaranteed accounts

A

If a customer has multiple accounts they can pledge the other accounts for margin together.

17
Q

number account

signature

A

must have in writing acknowledgement of ownership

18
Q

partnership is a

A

Unincorporated association of two or more individuals.

Must provide partnership agreements

19
Q

Margin

Non-Individual Accounts

A

Must state in the corporate res or partnership agreement that margin is allowed.
Trusts must also state that margin is allowed

20
Q

Employee related accounts

Questionaire

A

NOt required to ask if the spouse works for another firm.

21
Q

Fiduciary account

Giving Discretion

A

A fiduciary can not give discretion to another party and is the only one that can trade in the account.

22
Q

Guardian Court Order

A

To open the account the paperwork can not be older than 60 days.

23
Q

UGMA UTMA

Trading RUles

A
  1. The guardian is considered to have third party trading authority
  2. If donor is the same as guardian a fee can’t be charged.
24
Q

UGMA UTMA

Account Infor

A

Guardian - CUstodians Name & SSN
Bene - Name SSN DOB
Taxes are the benes obligation
Custodian can name a successor custodian

25
Q

UTMA UGMA

Margin

A

Margin is not allowed and the securities can also not be pledged for any sort of collateral

26
Q

UGMA UTMA

Account Guidelines

A

Assets must be reinvested timely
Funding is an irrevocable gift but can be cash or securities
all withdrawals must be documents
Minor can sue custodian

27
Q

Investment Adviser

defined

A

Manages assets for a fee.

28
Q

Omnibus Account

A

Single master account in the name of the IA. Must disclose to the member firm that the account is for customers

29
Q

DVP account

A

dvp is delivery of securities purchased vs. payment

rvp is receipt of funds for delivery of sold securities

30
Q

dvp/rvp

order ticket

A

must be marked either DVP OR RVP

31
Q

dvp/rvp

confirms

A

must be sent on execution

32
Q

dvp rvp

settlement and payment

A

settles regular way
if there is a settlement issue outside of the customers willingness to pay the member has up to 35 calendar days form the transactoin date to obtain payment.

33
Q

DVP RVP

DEPOSITORY eligible securities

A

Member firms are expected to use a automated real time trade matching system (RTTM) when dealing with depository eligible securities.

Series 53 (19 decks)

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