s66

private funds under section 3(c)(1) of the investment company Act of 1940 limits the number of investors to

100

3 business days

3rd party checks received by non-custody IAs must be forwarded to the 3rd party (USA only)

under the IA Act of 1940, unless delayed by the SEC, registration of an IA becomes effective how many days after filing

45 days..

the minimum loan amount that must be available in a variable life policy after 3 years is

75% of the cash value

the contribution limit has to be aggregated when participating in both

a 401(k) and a 403(b)

as defined in the investment company act of 1940, the term "investment company" includes

a face amount certificate company a management company a unit investment trust

what is guaranteed by a variable life policy

a minimum death benefit

under the exchange provision, within the first 24 months, a variable life policy may be converted into

a permanent form of life insurance policy

a broker-dealer is defined as

a person whose primary business is buying and selling securities for his own account and for the accounts of others

statements on annual renewable term life insurance has

an increasing premium, level face amount, with no cash value (the premium is based on the attained age, so it increases each year on the renewal date

in the USA, the term agent means

an individual (person is too broad) who represents the broker-dealer or issuers as they attempt to engage in securities transactions

how are universal life and variable life similar

as long as the policy has cash value, loans are permitted

things that a variable annuity and a mutual fund have in common

both offer voting privileges to their investors both compute their values on a daily basis both offer professional portfolio management

mutual funds class A,B,C shares

class A.. have a front-end sales charge and NO..or low 12b-1 fee.. these are used for a long time period class B.. have a declining contingent deferred sales charge and a high 12b-1 fee.. these convert to class A after 6-8 years class C.. have a level contingent deferred sales charge and a high 12b-1 fee.. these are meant for about a 1 year time period

with regard to investment advisers, the term ERA means

exempt reporting adviser

under the USA, investment advisers will generally be required by the administrator to

furnish any information the administrator finds necessary to the public interest.. promptly file a correcting amendment to any document with the administrator that has become inaccurate in any material respect.. renew all investment advisory contracts in writing

who can participate in keogh plans

individuals with income from self employment

18th birthday

latest date for a Coverdell ESA contribution

what is the most typical organizational structure of a private equity placement

limited partnership

180 days

mandatory waiting time to retest (3rd and subsequent failures)

9 months or 270 days

maximum maturity of exempt commercial paper

13 months

maximum time to complete a letter of intent

next business day

notification to administrator that IAs net worth is insufficient (send details the following business day)

calculations.. number of shares for conversion

par value / conversion price

the sharpe ratio is a measurement of a portfolios

risk adjusted return

calculations.. average market price

share price total / number of investments

48 hours prior contract

state IAs deliver initial brochure, 0r 5-day withdrawal without penalty

30th day

state registration or withdrawal of securities professionals effective

5 years

time keeping for investment adviser recordkeeping

3 years

time period for most records kept by the BD

an owner of an equity index annuity would be wise to use the high-water crediting method if the underlying index was expected to be

volatile with high-water the interest is calculated using the highest value of the index during the term

60th day

withdrawal of federal covered adviser on ADV-W

what are the 3 primary expenses involved with brokerage accounts that are NOT included in the fee disclosure template

-commissions -mark ups & mark downs -advisory fees for firms that are also registered IA's

specialist (DMM) vs. market maker

-specialist preforms his services on the floor of the exchange -prices are set by auction -market maker performs his on the OTC -prices are set by negotiation

time weighted return vs. dollar weighted return

-time is used to evaluate the performance of a portfolio manager -dollar used to evaluate the investors performance

what is a way that UITs differ from open-end investment companies

UITs have a termination date usually between 5-10 years

calculation.. sharpe ratio

actual return - RF / standard deviation

90 days (3 answers)

after end of fiscal year, IA must file annual updating amendment state IA with AUM at $110 million or above, must register with the SEC maximum time a letter of intent backdated

6 months

alternative valuation date for estate taxes

the return that will be earned over the life of a fixed annuity will

always be at least equal to the guaranteed minimum specified in the contract

an investment adviser renews its registration with the SEC by filing

an annual updating amendment.. within 90 days of their fiscal year

who would be considered an IAR under the USA

an executive who supervises an IAR.. senior supervisor who decides what investment advice should be given.. an employee who solicits clients for the firm.. manages accounts or portfolios for clients

120 days (2 answers)

annual delivery of adviser brochure to clients (if material changes) time limit for an IA who expects to reach the required AUM to register with the SEC

calculations.. current yield (stock)

annual dividend / current market price

calculation.. current yield (debt security)

annual interest / current market price

how often must an investment company file reports with the SEC as required by the investment company act of 1940

annually they are similar to other publicity registered entities in that an annual audited report must be filed with the SEC

what is an advantage of annuitization

annuities offer a guarantee of income that will last for a clients lifetime

statements on variable annuities

are both insurance and securities products must register with the state insurance department and the SEC must be delivered with a prospectus

what is included on the balance sheet

assets minus liabilities

under the USA when does registration become effective for an IA

at noon on the 30th day

who/what are specifically excluded from the definition as a "broker-dealer"

banks, issuers, and agents

calculations.. parity

bond market value / number of shares

similarities with UITs and open-end investment companies

both are federal covered securities, exempt from registration on the state level the NAV must be computed at least once daily, usually as of the close of the market

because of the changes made in the SECURE Act, minimum distributions from a traditional IRA must begin

by April 1st the year after the owner turns 72

the primary difference between an open-end and a closed-end investment company is

capitalization open-end has continuous offerings and closed-end is a set number traded in the secondary market

45 days

days after end of each quarter to file Form 13F

the face value in an insurance policy is the

death benefit

for securities professionals registered on the state level, renewal of registration takes place on

december 31 of that year..

credit risk is commonly referred to as

default risk

a broker-dealer having no place of business in a state is not required to be registered in that state if the BD

does no business in that state other than with institutional clients

a GRAT is a planning tool designed to pass assets to beneficeries in a way to minimize

estate taxes GRAT.. grantor retained annuity trust

what securities generally have the lowest expense ratio

exchange-traded funds variable annuity expense ratios are higher than mutual funds and the highest of all are hedge funds

the USA states that anyone who represents an issuer in effecting transactions between the underwriter and the issuer is

excluded from the definition of an agent

a living will is used to

express the authors end of life wishes

45th day

federal registration of BDs and IAs effective

the SEC Release IA-1092 added who to the potential list of IAs

financial planners.. pension consultants.. sports & entertainment representatives

advantages of investing in a REIT

flow-through of income limited investment risk limited management responsibility DONT flow-through losses

the security market line (SML) is the

graphical depiction of the capital asset pricing model (CAPM)

under the IA Act of 1940, the three-prong test used to determine if a person is an IA include

holding out as being in the business of giving advice.. being compensated for giving advice.. giving advice on securities

10 business days after first trade

investment advisers may use oral discretion

statements for REITs

must have at least 75% of their assets in real estate related activities must distribute at least 90% of net investment income to shareholders to qualify for special tax treatment must be organized as trusts

redeemable securities include

mutual funds, UITs, and variable annuities REITs are sold on the secondary market

who must redeem shares at the NAV

open-end companies and UITs

statements on mutual funds

open-end must have minimum 100k in assets to have a public offering mutual funds may be used as collateral in a margin account if they have been owned for more than 30 days mutual fund shares may NOT be purchased on margin b/c their shares are always public offerings of new shares open-end have a continuous offering and must be accompanied by a prospectus for open-end companies when redemptions exceed new purchases, the fund suffers from net redemptions

9 months after death

payment of estate taxes is due

5 business days

penalty free cancelation of IAs contract if brochure is not delivered at least 48 hours in advance (USA only)

as defined in SEC Release IA-1092, who is a pension consultant

person suggesting portfolio managers to administrators of employee benefit plans.. they might manage the assets or just provide suggestions of portfolio managers

a private equity funds are managed investment funds that

pool money and normally invest in private, non-publicly traded companies and business NOT liquid investments, meant for a long period of time

what are the two benefits to purchasing any mutual fund

professional management and diversification

if a state registered IA moves to another location, the administrator must be notified

promoptly

when computing a company's "quick ratio" what do you need

quick assets.. accounts receivable, marketable securities, and cash.. NOT inventory

15 days after account approval

receipt of options account agreement

what can an owner of a annuity that has been annuitized do

receive payments on a monthly basis until the time of death receive payments for life with a certain minimum period of time guaranteed have a joint life with last survivor clause with payments paid until the death of the last survivor

2 years

records must be kept easily accessible

what is the life insurance policy where the premium increases each time the policy is renewed while the face amount remains level is

renewable level term

what is included on the cash flow statement

salary, interest on savings, and income tax

investment companies must send financial reports to shareholders

semiannually

for a given amount of principal, what annuity option would produce the largest monthly income stream

straight life

who notifies the administrator when an agent begins or terminates a connection with a BD

the agent and the broker-dealer notify the administrator "promptly"

who safegaurds the securities held in a mutual funds portfolio

the custodian

what is the simplest way to approximate a reasonable price for a common stock

the dividend discount model

discounted cash flow method is used to find

the fair value of a security

what is a special characteristic of a universal life insurance policy

the policy may be overfunded

statements regarding UITs

they DONT have a board of directors their portfolios are NOT activity managed they DONT employ an investment adviser they DO issue redeemable securities

7 days

time limit for open-end investment company (mutual funds) to redeem shares

60 days (2 answers)

time limit to appeal an order under both state and federal law maximum termination clause with mutual fund adviser

30 days ( 3 answers)

time limit within which recession offer must be accepted or rejected mandatory waiting time to retest (first two failures) wash sale rule

calculation.. dollar cost averaging

total dollars invested / number of shares purchased

what is the prime difference between variable life insurance and straight whole life insurance

variable life insurance allows the policyowner to decide how the cash value is invested through a number of subaccounts

what are come advantages of ETFs

you can sell ETFs short or purchase them on margin ETFs tend to have higher tax efficiency over mutual funds they trade like stocks so settle in two business days