Unit 7 Flashcards
For agency cross trades to be executed, the adviser must do these 4 things:
- Provide a prospective client with a written disclosure regarding any potential conflicts that may arise
- Obtain written, revocable client consent
- Send the client a written confirmation which provides the date and details of the trade
- At least annually, send each client a summary of the adviser’s agency cross activity
According to the Investment Advisers Act of 1940, access persons must submit their personal security holdings reports by no later than ___ days after becoming an access person; then at least every ___ months thereafter.
10, 12
For IPOs of securities that will begin trading on an exchange (either the NYSE or Nasdaq), the obligation to provide a prospectus continues for __ days after the effective date.
25
For secondary (i.e., follow-on) offerings of securities that will trade over-the-counter (i.e., not be listed), broker-dealers must provide a prospectus for __ days.
40
If a broker-dealer is underwriting an IPO that will not be exchange-listed, it must deliver a prospectus for up to __ days after the IPO.
90
An employee of an investment adviser has recently donated $500 to a candidate’s political campaign. What are the consequences under the pay-to-play rule of the Investment Advisers Act?
The adviser is prohibited from receiving advisory fees from the elected official’s municipality for two years.
Under the SEC’s pay-to-play rule, an employee of an investment adviser is prohibited from making a political contribution that exceeds $___ to a candidate for whom she may vote.
$350
If an employee of an IA is not allowed to vote for a candidate, the employee is only able to contribute up to $____.
$150
When must an access person submit a transaction report?
No later than 30 days after the end of each calendar quarter
A no load-fund is a fund that assesses a 12b-1 fee of 0.25% of average _________ per year.
net assets
A _________ order gives a broker the time and price discretion to seek the best price available.
not-held
