Ethical Practices & Fiduciary Obligations
Some states contend that this involves the willful intent to deceive, while other states focus on the negligence of the acts committed.
What is fraud?
When calling prospective clients, an individual must give their name, their employer's name, and their employer's contact information. The call can only take place at this time according to the Federal Telephone Consumer Protection Act of 1991.
What is between 8 am and 9 pm local time of the person being called?
An individual files this through the CRD to begin the registration process.
What is Form U4?
A broker-dealer must file this to begin the registration process.
What is Form BD?
If an application is denied or withdrawn, the Administrator can keep all or part of this.
What is the filing fee?
When a person uses material, non-public information, it is considered this. Being in possession of the information, and not acting on it, is not unethical.
What is an insider trading violation?
IAs are permitted to use a list of past recommendations in advertising provided there is no "cherry-picking" and it is an accurate reflection of all the recommendations covering a time period of at least this long.
What is one year?
An agent's registration expires on this day. In order to renew, you must update the application and pay a filing fee.
What is December 31st?
This is a database that maintains information concerning registration and reported disciplinary actions of BDs and their agents.
What is the Central Registration Depository (CRD)?
IAs and IARs must receive this within 10 business days of the first transaction after oral discretion is granted. BDs and agents must have this to use discretion, unless it is a not-held order.
What is written discretionary authority?
An agent selling securities on bank premises must disclose, both orally and in writing, that the products offered are not deposits or obligations of the bank, that the products are not guaranteed by the bank, there they have inherent risk, and that the products are not insured by this.
What is the Federal Deposit Insurance Corporation (FDIC)?
Advisers may use recommendations provided by this, as long as the adviser discloses that they did not create the recommendations.
What is third party research?
Passing exams are only one part of the requirement for registration. An individual may not do business until this person deems their registration effective.
Who is the Administrator?
If a person is defined as this in a state, it must register as such in that state. There are some exclusions from this definition, including banks, issuers, and persons having no place of business in a state and only doing business with certain institutional clients in that state.
What is a broker-dealer?
This is formally known as the Uniform Securities Agent State Law Exam.
What is the Series 63?
When an investment adviser acts as a broker for the client and another party, it is allowable if the firm makes known the capacity in which it is acting before the transaction, and received written consent from each party. The transaction is referred to as this type of transaction.
What is a cross trade?
A communication to the public that is sent to more than one person by an IA is considered advertising. Under the USA, adviser advertising may not contain this of any kind - including social media "likes".
What is a testimonial?
This individual is exempt from registration if they are effecting exempt transactions or transactions with exempt securities since they are excluded from the definition of this under the USA.
Who is an agent of the issuer?
The length of time that a BD must keep and maintain correspondence records.
What is 3 years?
While a person or individual may be exempt from certain provisions of the USA, no person is exempt from these provisions.
What are the anti-fraud provisions of the USA?
Under the USA, agents may only make reference to this regarding securities if it relates to payment of principal, dividends, and interest promised by a person other than the issuer.
What is a guarantee or guaranteed?
It is a violation to make these to clients with regard to the sale or purchase of securities. Examples of this include spreading rumors, guaranteeing profit, omitting material facts, or stating that a security has been approved by the Administrator or SEC.
What are false and misleading statements?
An administrative assistant of a BD is permitted to accept unsolicited order if they have this.
What is an effective registration?
When there is a merger of 2 firms, this entity will not need to pay a new filing fee and only needs to file a new application.
What is the successor firm?
Settlements relating to arbitration of this amount or more must be disclosed when registering.
What is $15,000?