Regulatory Bodies
This U.S. agency oversees investment advisors managing over $100 million in assets.
What is the SEC?
Employees must report these types of personal transactions.
What are personal securities transactions?
You should never leave these types of documents containing client information unattended on your desk.
What are confidential or sensitive documents?
A client accidentally emails you their Social Security number. What should you do?
What is notify compliance and ensure the information is stored securely or deleted appropriately?
All public-facing communications must be reviewed by this department.
What is compliance?
This self-regulatory organization oversees broker-dealers.
What is FINRA?
The primary goal of a Code of Ethics is to prevent this.
What is a conflict of interest?
When sending sensitive information via email, you should always do this.
What is encrypt the email or use a secure portal?
You overhear a colleague discussing client account details in a public café. What’s your responsibility?
What is remind them of confidentiality policies and report the incident if necessary?
These communications are now more broadly defined under the SEC Marketing Rule.
What are advertisements?
Registered investment advisors file this form annually with the SEC.
What is Form ADV?
Gifts to or from clients should be documented and approved to avoid this appearance.
What is impropriety or a conflict of interest?
Employees must complete this annually to demonstrate understanding of security protocols.
What is cybersecurity training?
A long-time client insists on bypassing standard wire request procedures. What’s your next step?
What is explain firm policy and escalate the request to compliance if needed?
Testimonials and endorsements must include this under the new SEC rule.
What is a clear and prominent disclosure?
This is the government agency responsible for enforcing anti-money laundering laws.
What is the Department of the Treasury?
Employees are required to promptly report these to compliance if they may impact their objectivity or duties to clients.
What are potential conflicts of interest?
This plan outlines how the firm will operate during and after a cybersecurity incident.
What is a business continuity and disaster recovery plan?
A friend asks you to share your firm’s market outlook report before it’s been sent to clients. What should you do?
What is decline and explain that it would violate firm communication policies?
Before publishing a blog post or social media update, employees must ensure the content meets these two standards.
What are fair and balanced presentation and compliance review/approval?
This law requires advisers to establish and maintain a written business continuity and succession plan.
What is the Investment Advisers Act of 1940 (under Rule 206(4)-7)?
This term refers to using non-public information for personal gain.
What is insider trading?
You must notify compliance if you believe this has occurred.
What is a data breach?
You realize you made a trade error in a client account. What do you do?
What is report it immediately to compliance and follow the firm’s trade error correction policy?
Using performance data in marketing materials requires this standard.
What is fair and balanced presentation (e.g., net-of-fee and appropriate disclosures)?