Unit 16- US Gov & State Reg Flashcards
The Maloney Act
enabled SEC to create designated examining agencies (DEAs) such as FINRA and MSRB
Trust Indenture
series of promises between issuer and trustee who acts in benefit of the bondholders
Trust Indenture Act of 1939
requires corporations who issue corporate bonds of:
1) issue size of more than $5MM within 12 months
2) maturity fo 9 months or more
to appoint a trustee
Where is a trust indenture filed?
the office of the custodian
SIPC
Securities Investment Protection Corporation
-collects annual assessments from broker/dealers that creates an insurance fund for customer claims from broker/dealer failure
Blanket Fidelity Bonds
to protect against employee theft
Which act requires corporations to file Annaul Reports?
Securities Exchange Act of 1934
When broker/dealer becomes insolvent, what value does SIPC use on customer claims?
market value on date federal court is petitioned to appoint a trustee
Who is the lead agency for regulating anti-money laundering?
Treasury Department
What is the threshold for filing a suspicious activity report?
$5000
Sarbanes-Oxley Act
oversee regulate and discipine accounting firms in their roles as auditors
Does the trust indenture act apply to interstate offerings?
Yes
When must a broker dealer register as an investment advisor?
If provides financial planning for a separate fee
What must a penny stock be trading at less than?
$5.00 / share
What type of organization is SIPC?
a nonprofit membership corporation
FinCen Form 112
currency transaction totaling more than $10K on a single business day
If convicted for insider trading, registered representative can be fined the greater of two amounts
1) Three times the profit gained/lost
2) $5MM
Do Blue Sky laws regulate exchanges?
No
Can whistleblowers be awarded?
Yes- if successful enforcement as % of amount collected
Layering
series of layers of transactions that are generally numerous and complex
Placement
when funds are moved into the laundering system
Integration
comminglied with legitamate funds
Can penny stocks trade on an exchange?
No
What makes someone an established penny stock customer?
Holding 3 penny stock positions
When can a security trade below sub-penny prices?
When its priced below $1
