Conflicts of Interest
These are things you must consider when you recommend an annuity to a client.
What is the client's best interest and conflicts of interest?
When an advisor becomes aware of changes to Polen's portfolio construction, then adds funds to his own Polen position, this violates this rule.
What is not a violation?
This compliance topic was under the most surveillance by the SEC in Q3 and firms who violated this rule received the highest fine amounts per firm out of any other topic.
What is off-channel communication?
You must do this when the value of a gift given or received is less than $100.
What is do not need to report?
This term includes the giving or receipt of gratuities, merchandise, service, and the enjoyment or use of property or facilities for personal use. It also includes meals, tickets to events, and other entertainment that does not qualify as “business entertainment.”
What is a gift?
These are things you must consider when a client suggests investing in an annuity to you.
What is the client's best interest and conflict of interest?
When clients send us physical documents and statements (voided check, copy of driver's license, etc.), we upload this info into CRM, but we sometimes forget this step.
What is shred the documents and leave them lying around or throw them in the trash?
These are types of written electronic communications that don't need to be recorded and maintained.
What are scheduling meetings and personal conversations?
You do this when receiving a gift worth $150 from Allegis.
What is report the gift to Scott?
Alleged misconducts from clients, such as allegations of breach of confidentiality, theft, and unsuitable investments, are examples of this.
What are client complaints or grievances?
You must report this here when you are compensated for being a part of your kid's soccer coaching staff.
What is Orion Compliance -> Outside Business Activities?
This is the procedure for storing physical, personal, and sensitive client info (voided check, copy of driver's license, filled out applications, etc.).
What is putting them in your drawers and locking them?
These are things you must do when a client keeps texting you on your personal phone about business and trade related matters.
What is tell the client you have a new number (Ring Central), and then record and maintain the previous conversation, per policy and procedure?
The aggregate annual value limit given to or provided by a third party.
What is $250?
Guarantee of performance and misleading statements are examples of this.
What are prohibited actions by the SEC (Marketing Rule)?
This form allows Capita to comply with the Prohibited Transaction Exemption 2020-02, which allows us to do a client rollover.
What is a Rollover Recommendation Form or PTE Form?
These are possible signs of diminished financial capacity.
What are
-- Recent or frequent changes to clients' beneficiaries
-- Recent or frequent changes to clients' emergency contacts
-- Inconsistent decision-making
These are types of electronic communications that must be recorded and maintained.
What are client texts and emails involving business and trades, and investment recommendations or advice given or proposed?
This is the procedure when you are already at your annual gift giving limit and you send a gift with a Capita logo on it worth $50.
What is do not report?
These are potential dangers and steps to avoid compliance errors when a client wants to make at least 7% on their investments.
What is
-- Any recommendation we provide at that point can be misleading
-- We cannot guarantee performance, ever!
-- The talk at that point needs to be about education and expectations