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Uniform Securities Act > RANDOM & ERISA > Flashcards

RANDOM & ERISA Flashcards

1
Q

an IA must disclose what in Form ADV

A

10 years of business experience
control persons
audited balance sheet
scope of authority over client funds
manner of compensation

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2
Q

Registration process for a BROKER DEALER

A
  1. file application
  2. pay filing fee
  3. consent to service
  4. registration is effective 30 days after application
  5. expires on December 31st unless renewed
  6. Administrator may set minimum capital requirement
  7. Administrator may require surety bond if has custody or discretion
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3
Q

If there is a MERGER, ACQUISITION or SALE of BD, what is waived for the successor firm when submitting application?

A

the FILING FEE

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4
Q

Regulation D is one of the few transactions that doesn’t need to be…

A

REGISTERED under 1933 or the USA

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5
Q

Are you an AGENT if you transact business with EXISTING customers who are NOT residents of the state?

A

NO

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6
Q

Are you an AGENT if you represent the ISSUER in an EXEMPT TRANSACTION?

A

NO

An agent that works for a WINERY and gives a tour so you can invest in the WINERY. He represents the ISSUER.

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7
Q

How do you become an AGENT of a BROKER DEALER?

A
  1. file application
  2. pay filing fee
  3. consent to service
  4. registration is effective 30 days after administrator received notice
  5. expires on December 31st unless renewed
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8
Q

ABC test for Investment Advisor (FIRM)

A

A- advice
B- business
C- compensation

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9
Q

amounts allowed to contribute to CAMPAIGNS

A

$350 - Investment Advisor Rep (able to vote)
$150 - not able to vote

$250- broker dealers

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10
Q

Defined contribution plan for a SMALL BUSINESS OWNER

A

SIMPLE 401(k)

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11
Q

What type of plan can only be opened by BUSINESSES with NO EMPLOYEES?

A

SOLO 401(k)

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12
Q

What OTHER person can be included in a SOLO 401(k)?

A

SPOUSES

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13
Q

In what type of plan MUST an EMPLOYER contribute the a FIXED PERCENTAGE of the employees salary?

A

MONEY PURCHASE PLANS

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14
Q

Retirement plan for non-profits and public school systems.

A

403(b)
Also called tax-deferred annuities
tax-sheltered annuities

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15
Q

403(b) can only be invested in

A

annuity contracts
custodial accounts holding mutual fund shares
retirement income accounts

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16
Q

popular plan for SELF-EMPLOYED individuals

A

SEP IRA

17
Q

retirement plan for self-employed individuals AND MUST include employees that meet certain requirements AND MUST contribute equal percentage to employees as to self

A

KEOGH

18
Q

NON-QUALIFIED PLANS

A

payroll deduction
deferred compensation
457 plans

19
Q

Allows employees to purchase life insurance, mutual funds and annuities through after-tax deductions from their paycheck

A

PAYROLL DEDUCTION PLANS

20
Q

non-qualified plan offered to government, public school system

A

GOVERNMENTAL 457 PLAN

21
Q

non-qualified plan offered to private colleges and labor unions

A

NON-GOVERNMENTAL 457 PLAN

22
Q

When investors don’t select an
investment in a qualified retirement account, the sponsor MUST invest in a:

A

QDIA - qualified default investment alternative

23
Q

Eligibility requirements for QUALIFED plans

A

21 or older and must be FULL TIME for ONE YEAR (1000 hours)

21 or older and have provided THREE CONSECUTIVE YEARS of service worked at least 500 hours

24
Q

Test that ensures that qualified retirement plan participants who are identified as “key employees” don’t receive a disproportionate amount of benefits when compared to
“non-key employees

A

TOP-HEAVY TEST

25
Q

Rule that states that ownership of assets of a qualified plan bust stay within the jurisdiction of the United States

A

Rule 404(b)

26
Q

Rule that governs conduct of fiduciaries of ERISA qualifed plans

A

Rule 404(c)

27
Q

What factors determine whether an ERISA plan is diversified properly

A

purpose of the plan
amount of assets
financial and economic conditions
type of investment
geographical and industry diversification
dates of maturity (if applicable)

28
Q

What should be included in an IPS (Investment Policy Statement)

A

investment philosophy
risk tolerance
time horizons
preferred asset classes
rate of return expectations
long-term goals for plan

Uniform Securities Act (9 decks)

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