Series 63 Unit 4

Form ADV part 2 must be delivered within

120 days of the end of adviser's fiscal year (If not 48 hours before initial contract-->5 day free termination clause)

Options agreement must be signed and returned by customer within

15 days of account approval

Form ADV part 2 is the

Brochure

Discretionary contracts must include

Consent to change management required Fee charges amount Discetionary consent Both advisor and client can make trades

If you there is a guaranteed principal and interest or dividends by a third party, it is considered a

Guaranteed Security (Bonds-Interest and Stocks-Dividends)

A BD must provide a risk disclosure document to a customer before opening which of the following accounts?

Margin

A client is completing a new account form that contains questions about the investor's investing experience and knowledge. More than likely, what type of account is being opened?

Options account

Contra-Party

Person on the other side of the trade

The federal legislation that requires broker-dealers to verify the identity of any person opening an account is the:

U.S.A. PATRIOT Act.

What is necessary with a new charting system?

a statement as to the limitations of and difficulties involved in using this system

In general, a broker-dealer will disclose any changes to its fee schedule

by notifying clients of the change in advance

Affinity Fraud

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

In addition to transaction costs (e.g., commissions or markups), most broker-dealers have a schedule of miscellaneous fees. The purpose of these fees is to

help to reimburse the broker-dealer for expenses incurred in performing the transaction or a service for the client

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

margin interest on the debit balance

Under the Uniform Securities Act, investment advisory contracts

must contain a description of fees

SIPC1

offers protection for the net account value, up to the SIPC limits, in the event of a broker-dealer's insolvency

The most common way in which to distinguish whether social media content is static or interactive is

the ability for others to change it

For larger accounts, a broker-dealer is least likely to waive its normal fee for

transferring the account to another broker-dealer

An agent may determine which securities to purchase or sell for a client when

written discretion authority has been received by the broker-dealer before executing the first discretionary transaction (investment adviser may act with oral consent for a period of 10 days from the initial discretionary trade)