Securities License Exam Manual - Part 1

अब Quizwiz के साथ अपने होमवर्क और परीक्षाओं को एस करें!

SEC Release IA-1092 Expanded Definition of IA to include:

1. Financial Planner 2. Sports and Entertainment 3. Pension Consultant

Define Investment Adviser

1. Gives Advice on Securities 2. Gives Advice on regular basis 3. Receives Compensation

What is NOT a Person?

1. Minor 2. Deceased Person 3. Mentally Incompetent

3 Things defined as NOT being a person

1. Minors 2. Deceased Individual 3. Mentally Incompetent

Define Investment Counsel

2 criteria must be met: 1. Principal business must be giving investment advice and adviser must provide investment supervisory services. 2. Running model portfolios for clients with daily monitoring would meet both requirements

De Minimus Exemption

Advisers with NO place of business within the state are NOT defined under act as advisers if they have NO more than 5 clients within a 12-month period.

Blue-Sky laws

Enactment to Part of USA Model State Securities Legislation and created an enactment of several securities state laws

State Law Exemptions

IAs exempt from registration with the state Administrator are those who have NO place of business in the state, but are registered in another state.

Institution

Includes banks, trust companies, savings, and loan associations, insurance companies, investments companies i.e., mutual funds, employee benefit plans with assets of at least 1,000,000.

Federal Law Exemptions Include:

Intrastate Advisers (ONLY within ONE State) Advisers to Insurance Companies

Who is excluded as Investment Adviser?

Lawyer Attorney Teacher Engineer Broker-Dealer - receiving NO Compensation Agents - NO Wrap Fee or Compensation

Administrator

Office or Agency - Has responsibility for administering securities laws of the state

Wrap Fee Program

Program where client is charged a specified fee, or fees, not directly based on transactions in a client's account.

Publishers Excluded from Definition of Investment Adviser

Publishers of general circulation newspapers and magazines are excluded from the definition of investment adviser, especially because the entire publication is devoted to impersonal investment advice. Important Key - Published Regularly (NOT upon market events).

What level are the Investment Advisors Act of 1940 related to?

Regulations on the Federal Level

What level are the Uniform Securities Act (USA) related to?

Regulations on the state level

Blue Sky Laws

State Level anti-fraud regulations that require issuers of securities to be registered and to disclose offerings. The Blue Sky Laws follow the Model USA and are superseded by Federal Security Laws


संबंधित स्टडी सेट्स

Types of Robotic Arms and Joints

View Set

15.6.8 Network Pro Practice Questions

View Set

how many morphemes are in the following words

View Set

CISSP Practice Test Combined_good

View Set

EMR: Chapter 23 Pregnancy and Childbirth

View Set

Chapter 4 - The constitution of the United States of America

View Set

Speak Out Starter Unit 4 (2) Days, time phrases

View Set

Post Traumatic Stress Disorder/Syndrome

View Set

Unit 7 - Investment Analysis and Strategies

View Set