Notes 3 Flashcards
SIPC and FIDC protect against
ONLY BANKRUPTCIES, SIPC for BDs, FIDC for banks
What’s a shelf registration?
file with SEC, then can sell securities within 3 years whenever time is appropriate
North American Securities Administrators Association (NASAA) does…
creates rules, laws, and exam requirements for states
Characteristics of an Equity indexed annuity
offer minimum return, and is tax-deferred. NOT CONSDIERED A SECURITY
Who are under no circumstances allowed to buy equity IPOs?
employees of a member firm
When are guidelines regarding brokerage employees opening accounts at other brokerages wavied?
if they only buy mutual fund shares
Do AML plans have to be registered with FINRA?
No, must only designate an AML compliance officer
how long do records need to be held at a broker-dealer after customer closes their account?
at least 6 years
how long do customer complaints need to be held for at BDs?
4 years
how long does FINRA retain jurisdiction over a RR after their resignation?
2 years
How early does a BD need to notify its primary regulator when using a new electronic storage method?
At least 90 days
How does OCC select a member firm to receive exercise notice of option?
by random
When does continuing education begin?
starts on 2nd anniversary of getting membership, then every 3 years
When must you pay payment for the redemptions of mutual shares by?
7 days
Profit Sharing Plan
Contribution made in pretax dollars, are allocated on a pre-determined formula, and board of directors determine amount of contributions
Notice of sale?
ONLY for COMPETITIVE BIDDING
contains info regarding the offering
Regulation T requirments
require customer deposit by fourth business day after the trade date
For cash accounts, full purchase must be deposited
For Margin, only 50%
What is market order executed at?
Most “Reasonable price”
when opening a brokerage account somewhere else, must provide
firm’s written consent, and provide written notification to executing firm
How long does a firm need to maintain records in an easily accessible location?
for first two years
Fee vs commission based accts
Fee - one flat rate, good for people who trade a lot
Commission - buy and hold
What are Trust accounts
used to pass on money/property, but can be set up with restrictions on withdrawals
What are bond anticipation notes?
Short-term notes, used in advance of a larger future offering
do ADRs need to be registered?
yes, under securities act of 1933
