The duty that requires Cornerstone to act in the best interest of its clients
What is Fiduciary Duty?
100
Must maintain books and records for this period of time
What is 5 years ?
100
Information that has been electronically stored but no longer needed
What is doucment destruction?
100
Selecting the best performance information to provide to a prospect
What is cherry picking?
100
A trade that is grouped together so that all clients trading the same security on the same day will obtain the same average price for the security that is bought or sold
What is Block Trading?
200
A stock, bond, IPO, Private Placement or ETF
What is Reportable Security?
200
Emails, correspondence, marketing materials, statements, financial records of firm, new account documents, etc
What is required books and records?
200
Social security numbers, tax identification numbers, account numbers, account balance, performance information, list of authorized signers
What is non-public information
200
Telling a client that we can achieve 15% return on their investments
What is misleading/false statements?
200
A regulatory body that established laws and rules and monitors the activities and compliance programs of Registered Investment Advisors
What is the Securities and Exchange Commission (SEC)
300
Possessing information about a company that is not public knowledge, information that could be beneficial to know before buying or selling a company stock or being on the board of a company and having information about various business practices.....Confidentiality is KEY
What is insider trading?
300
Our current method of maintaining books and records in an indexing format so that it can be easily retrieved
What is electronic filing?
300
Requirement to establish procedures on dealing with client confidential information
What is Reg S-P
300
Notice, circular, letter or other written communication addressed to more than one person which offers anaylsis, report or publication concerning securities or any other investment advisory service
What is marketing materials?
300
Putting your own interest first....helping yourself more than helping the client
What is conflict of interest?
400
Doing the right thing when no one else is looking
What is Ethics or Integrity?
400
Requirement for records to be maintained in Adviser's office
What is 2 years?
400
In order to take work home or out of the office, this must be done
What is sign out documents?
400
A list that only includes some of our clients who have authorized the use of their names and contains a disclosure indicating it is unknown whether they approve or disapprove of our services
What is Partial Client List?
400
Required by the SEC, standard of conduct, disclose conflicts of interest, reaffirms our fiduciary duty
What is Code of Ethics
500
Key to basis for your decisions
What is core values?
500
All of the info that the SEC could require to be provided to them during an examination
What is books and records (emails, correspondence, financial records of the firm, statements, assets under management, new acct docs, etc)
500
In order to provide confidential information to a third party such as Chicago Clearing Corporation, a client must be provided with the ability to not be included.
What is Opt Out Notice?
500
A post on Linked-In, our website or marketing brochure indicating that we have provided them with the best advisory services ever that is prohibited by the SEC!!
What is a Recommendation or testimonial?
500
Must provide to the CCO within 30 days of the quarter end