Unit 6 Flashcards
1
Q
Not included in the fee disclosure documents
A
- commissions
- markups and markdowns
- advisory fees
2
Q
Investment Adviser Brochure Rule Test trick
A
The A in part 2A tells us that part is about the Adviser and the B in part 2 is about the Bodies (the people) who work there.
3
Q
State-registered IA when to file ADV w/ administrator
A
Must file a copy of a complete ADV Part 2 with the administrator within 90 days of the end of the adviser’s fiscal year
4
Q
Initial delivery of IA Brochure
A
- not less than 48 hours prior to entering into any advisory contract w/ such client or prospective client OR
- at time of entering into any such contract— advisory client has a right to terminate the contract w/o penalty within 5 business days after entering into the contract
5
Q
Credit agreement
A
Loan from the BD to the client w the client’s securities used as collateral
6
Q
Hypothecation Agreement
A
Loan from a bank to the BD w the client’s securities as collateral for the BD’s loan
