KYC
KYC stands for ____ ____ ______.
Know Your Customer.
The three standard of care consist of:
Suitability, Best Interest, Fiduciary
List some of the main benefits of Mutual Funds.
Diversification, Professional Management, Liquidity
If I want to view the status of a trade I placed in my clients account today, what tab in NetX should I open up?
Order/Trade Status.
True or False: It is OK to present a PX plan to a potential client before becoming registered in their home state.
False.
True or False: Broker dealers can be fined by FINRA for not complying with KYC requirements?
True
The standard of care that requires a financial representative to have reasonable belief that a recommendation fits the clients current needs is the ________ standard.
Suitability
This share class has a front end load and is typically a longer term investment selection.
Class A Share
I have submitted a transfer request for my clients account, what function in NetX should I use to determine the status of the request?
Work Status.
Where do I look to view outstanding SMART flags, and in what time frame should I address them?
SMART flags can be found and addressed in the compliance portal. Flags should be resolved within 28 days to avoid escalation.
Accurate record-keeping is not a one-time event, it is a _______ process.
Continuous/ongoing
The highest standard of care, which requires broker-dealers to always act in the clients best interest, not just when making recommendations, is the _______.
Fiduciary Standard
C - shares have no upfront sales charge, but may have a __________________ when sold.
Contingent Deferred Sales Charge (CDSC)
I want to determine if my client has met their RMD for the year. What tab would be best to open up in NetX?
Retirement Data.
In response to Regulation Best Interest, it is important to include additional factors in your case notes. What are some of these items you should aim to include?
- Were CRS disclosures sent to the client? When?
-Why is this recommendation in the best interest of the client?
Name one of the main purposes of the KYC requirements.
Protection against fraud and misconduct.
Compliance with AML laws.
Personalized advice; providing more suitable recommendations .
Build trust.
When working in the advisory capacity, you are held to the _______ standard.
Fiduciary
True of False: When purchasing funds in the same fund family, you can combine the total of all accounts in your household to receive a lower sales charge?
True. This is called Householding.
I notice a negative balance on my clients account, but do not know how this was caused. What tab in the clients account in NetX would be best to determine what has occurred in the account?
Activity tab.
A client sends an email requesting to take out a loan from their policy, what two important steps do you need to take before sending them the funds?
1. Call and authenticate the client.
2. Document in CRM case notes.
List three required pieces of information before opening up an investment account.
Legal Name, address, SSN, Date or Birth, picture ID, employment details, income, etc.
_________ requires broker/dealers to provide disclosures of all material facts regarding the relationship and recommendations including capacity, fees, scope of services, etc.
Regulation Best Interest (Reg. BI)
What is the main difference between ROA and LOI when entering mutual fund trades?
ROA refers to a breakpoint that has already been achieved, while LOI is used to receive a lower sales charge before the breakpoint is hit when the client intends to hit the breakpoint in the next 13 months.
A request I submitted in NetX states PENDING CLARIFICATION. What do I need to do?
Open the request and read the Audit Trail for any action steps requested by the home office. Use the Take Action tab to return the request once completed.
What do I need to do if I receive an order to purchase a mutual fund after market hours?
Call client the next business day to reconfirm order before placing.