Series 7 chapter 1 pt 1 Flashcards
FINRA is what type of organization
self-regulatory organization
General securities principles(series 24) May review and or approve
communications for all securities except options
Limited securities principles(series 26) may only review and or approve
communications for investment company products
Institutional communication
any written communication that is distributed or made available only to institutional investors but does not include a members firm’s internal communications
Retail communication
any written communication that is distributed or made available to more than 25 retail investors within any 30 day calendar period.
what is a retail investor
any person other than an institutional investor
retail customer
any customer, existing or prospective that does not fit the definition of an institutional client.
institutional communication used exclusively with following institutional investors
member firm or registered person of the member firm
bank savings and loan insurance company registered investment company investment advisor any entity with 50 million or more in total assets including natural persons governmental entity employee benefit plan that meets
requirements of 403 b or section 475 and has at least 100 participants.
person acting solely of behalf of the institutional investor.
correspondence
written or electronic communication that is distributed or made available to 25 or fewer retail investors within any 30 calendar day period.
which communication group requires prior principal approval before use
Retail communication
public appearance
participation in a any public speaking activity including electronic.
does public appearance require preapproval
preapproval may be required but is not mandated.
independently prepared reprint
consist of any article reprint that meets certain standards designed to ensure that the reprint was issued by an independent publisher and was not materially altered by the member.
can only be altered for factual errors and to make consistent with regulatory standards
do independently prepared reprints need to be preapproved
must be preapproved by principal
research reports
document prepared by an analyst or strategist typically as a part of a research team for an investment bank or broker-dealer
electronic bulletin boards are considered what type of communication
retail
generic advertising
promotes securities as an investment medium but does not refer to any specific security
firms must have available for sale the type of security or service they advertise
true or false
true
What requires that the communication was issued by an independent publisher and not materially altered by the member.
Independently prepared reprint
Retail communications for investment companies that include a ranking or a comparison that is generally not published or is the creation of the investment company or the member must be
filed with FINRA at least 10 business days before first use
Is a form letter to 20 prospective customers subject to preapproval by a principal
no
if you are going to have a conference you must
complete a training program prior to the activity.
ranking entity
refers to any entity that provides general information about investment companies to the public.
Members may not use investment companies rankings in any retail communication other than
rankings created and published by ranking entities
or rankings created by an investment company or an investment company affiliate but based on standard performance measurements.
bond mutual fund volatility rating
description issued by an independent third party relating to the sensitivity of the net asset value of a portfolio of an open end management investment company that invests in debt securities to changes in market conditions and the general economy.
Money market funds which are composed of short term high quality debt instruments are
inappropriate for investors seeking long-term growth
disclosure documents, such as statutory prospectus, summary prospectus, or statement of additional information are prepared by who
by the issuer and are not subject by the principal
does a recruitment ad have to put out their name in the ad
no they can do a blind ad
hypothetical illustrations showing assumed rates of return may be used
to demonstrate the performance of variable life policies.
retail communications must be kept on file for
3 years
an established firm must file investment company communications that include a ranking not independently prepared with finra within how long
within 10 days of first use.
your established firm wishes to promote a mutual fund it markets to the public. What approval and filing requirements apply to this communication
it must be filed with finra at least 10 days before first use
it must be approved by a registered principal
communications related to variable life and variable annuities must meet these specific standards.
communications must clearly describe the product as either variable life or a variable annuity
hypothetical illustrations showing assumed rates of return may be used to demonstrate the performance of variable life policies
communications regarding single premium variable life may only emphasize investment features of this product if an adequate explanation of the life insurance features is also provided
