Registered Investment Advisors (RIA Flashcards
Definition of Investment Advisors Act of 1940
- in business of
- providing advice about securities
- for compensation
What form is used to register with the SEC
Form ADV
Registration Exceptions 4 types
(TABLES)
- broker/dealer with incidental services
- lawyers, accountants, teachers, engineers
- banks/bank holding companies not investment corps
- newspaper publications
Registration Exemptions and def.
HINT: VIPs are SaFE from exemptions
DEF: meets def of investment advisor but does not need to Register
1. Advisors residing in state of business but does not provide advice, services or analysis for national securities
2. advisors not providing advice on national exchange
3. advisors who’s only clients are Insurance companies
4. advisors solely to capital funds
5. advisors solely to private funds <150M
6. foreign advisors without place of business in US
What are the required disclosures for the Brochure Rule? is this for every client?
Yes, every client.
1. services and fees
2. types of securities
3. education background
4. participation/ interest
5. MUST be given to client before or at time of engagement - form ADV part 2 A,B
6. summary of material changes annually with updated brochure rule.
What form is used to register with FINRA? what exams are needed to pass?
U-4
Series 6, series 7 and life/state insurance
Under the Dodd Frank Wall Street reform and consumer protection act what are lenders now required to do? 5 things
- verify income, credit history to decided for loan repayment
- cannot refinance unless benefits borrower
- banks must retain 5% risky loan exposure
- if lose job, can qualify up to 50k loan assistance
-FDIC limit 250K
Definition of Accredited Investment Advisor
HINT: 123 test!
- have net worth 1M excluding residence
- Make 200k in current and recent 2 yr (single)
- Make min 300k jointly
