This must be provided to customers at the establishment of the relationship and annual thereafter.
What is a privacy notice?
100
An account that is opened and managed by one person for all of that person’s customers.
What is an Investment Advisor Account?
100
Excessive trading in a customer’s account.
What is Churning?
100
The life changes you need to notify your RR about.
What are changes in address, financial circumstances, or investment objectives?
100
4 important investment objectives.
What are Income, Growth, Preservation of Capital, and Tax Relief?
200
A person who acts on behalf of another person and always for that person’s benefit.
What is a Fiduciary?
200
An account requiring at least 50% of the purchase price, a loan consent agreement and a credit agreement.
What is a Margin Account?
200
This instrument protects customers against theft or embezzlement by brokerage employees.
What is a Fidelity Bond?
200
The specific information enabling the RR to determine client suitability.
What are age, other investments, financial situation, tax status, investment objectives, experience, investment time horizon, liquidity needs, risk tolerance?
200
A non-profit organization only broker-dealers may join providing insurance for customer accounts if the BD goes bankrupt.
What is Securities Investors Protection Act (SIPC)?
300
The 3 stages of Money Laundering
What are Placement, Layering and Integration?
300
An account for which the client is charged one flat fee covering costs of trading, research, advice and administration.
What is a Wrap Account?
300
The law and the amendment enacted to detect, deter and disrupt terrorists financing networks.
What are the Bank Secrecy Act (BSA) and the PATRIOT Act?
300
Three pieces of information needed to execute a non-discretionary order.
What are the Asset, the Action (buy or sell), and the Amount of shares or units? (The Three “A”s)
300
The order of liquidation of accounts when a bankruptcy happens (6 total).
What are Wages and Taxes, Secured Bondholders, Debentures, Subordinated Debentures, Preferred Stockholders, Common Stockholders?
400
The diversification of investments into a mixture of equities, debt instruments and cash equivalents.
What is Asset Allocation?
400
This account requires the employing BD to promptly approve all trades and to review the account frequently.
What is a discretionary account?
400
The criminal penalties for violating the AML.
What are up to a 20 year prison term and the greater of fines up to $500,000 or twice the currency amount involved?
400
These items must be acquired for the new account form before the RR can enter an order.
What are the customer’s name, street address, name of the RR and signature of the principal who approves the account?
400
A investor who is primarily concerned with safety (preservation of capital) may choose to invest in these types of securities, despite the fact they typically offer lower returns than other investments.
What are Treasury Bills or Money-Market Funds?
500
A Joint Account where ownership is equal and the living person acquires ownership of the account without going through probate.
What is a Joint Tenants with Right of Survivorship (JTWROS) ?
500
An account requiring each person’s address and citizenship plus and the organization’s tax identification number and agreement.
What is a Partnership Account?
500
The record types that allow for reporting of suspicious activity involving $5,000 or cash transactions totaling $10,000 or more in a single day and are possibly from foreign countries.
What are CTRs, CMIRs, and SARs?
500
Documents needed to transfer the account of decease individual to the estate account.
What are a copy of the death certificate, Letters of Testamentary, an inheritance tax waiver, and an Affidavit of domicile?
500
The date on which the transaction must be completed between the Broker Dealers representing both buyer and seller.