series 63 pt 4

A working group convened by NASAA has developed a model fee disclosure schedule to help investors better understand the costs involved in doing business with their broker-dealer. The template has broker-dealers disclosing which of the following fees?

Account closing fees There are 3 primary expenses involved with brokerage accounts that are not included in the fee disclosure template. Those are commissions; markups and markdowns; and advisory fees for those firms that are also registered as investment advisers.

If AAA Investment Advisers has entered into a written advisory contract with a client that contains a discretionary power, all of the following information must be stated in the contract EXCEPT A)The amount of the fee AAA Investment Advisers charges annually on the value of assets under management B)AAA Investment Advisers has discretionary authority to make investment decisions on behalf of the client C)consent of the client is required for AAA Investment Advisers to assign the contract to another manager or adviser D)AAA Investment Advisers shall be the only party eligible to make investment decisions in the account

D

Your client maintains a small cash account at the firm. One typical broker-dealer fee that would not be charged to this client is

In a cash account, you can't have margin activity, so there can't be a margin interest charge.

Which of the following is among the items of information that must be entered on a new account form?

Names of all persons who will have access to the account

Which of the following statements regarding Form ADV Part 2 is TRUE?

Unless there are no material changes, it must be delivered to clients annually.

A person who is vested with legal rights and powers to be exercised for the benefit of another is known as

a fiduciary

When an agent recommends a proprietary mutual fund to a client, it is considered

a potential conflict of interest

The Uniform Securities Act mandates that contracts between investment advisers and their clients

be in writing disclose the method of compensation

In designing a client's portfolio, a registered investment adviser representative of Greater Wealth Advisory Services recommends the purchase of several stocks from the inventory of Greater Wealth's wholly owned broker-dealer. Under current regulations, this activity requires written

disclosure to the client and consent prior to completion of the transaction investment advisers must obtain the consent of and make written disclosure to the client of the intent to act as agent or principal in any transaction with that advisory client

One of the concerns about social media is the opportunity for affinity fraud. This occurs when

fraudulent offers are aimed at groups of people who share a similar interest

Content published on social media that allows for others to comment, reuse, or "like" is considered to be

interactive content

To comply with the regulations regarding customer identification programs, the minimum identifying information that must be obtained from each customer before opening an account includes

name a Taxpayer Identification Number (TIN)

A banner on a broker-dealer's website is considered

static content only the firm can make changes and those changes are infrequent.

Trade confirmations sent by broker-dealers to their customers must always include

the amount of commission charged

A broker-dealer publishes a list of securities it approves for inclusion in IRAs. This means

the broker-dealer has evaluated these securities and believes they would be suitable for inclusion for retirement planning However, a broker-dealer creating an approved list of securities is not unethical or prohibited as long as it is clear that it is the BD and not any regulator granting the approval.

A client of an investment adviser is thrilled with her portfolio's results and posts a note on her bridge club's cork board suggesting that some of the other members would probably benefit from the adviser's skills. Under NASAA's Model Rule on Unethical Business Practices of Investment Advisers, Investment Adviser Representatives, and Federal Covered Advisers,

this would be permissible because it was done without the knowledge of the adviser