Established Indiv, who wouldn't need much assistance. they need less disclousures
TIC (Tenants In Comons)
Acct with Joint Ownership. When one person dies, their share is sectioned off and given to the estate.
Only 1 person can get the mail if all agree
SAR Supiscious Activity Report
- File with FinCEN whenever activity seems to be suspisious.
- $5k or more requires the filing of the SAR
17 Business Days of the end of each month and each Qtr.
FILLs within 17 business days of end of each QTR.
Must file annual audit within 60 days of FYE
the Form used to establish a new BD, Any Changes need to be made promptly
Cooling Off Period
- 20 days Minimum.
- No Solicitations at that time, advertising, recommendations or Sales.
- the Length can vary.
- Only employer contributes, no employee contributions.
- Employee must have earned atleast 5K to participate
Start taping within 60 days, must put in equipment, and procedures to monitor sales activ. of people interacting with the public.
COP - CODE OF PROCEDURES
- Handles Complaints (trade practices) invovling violaitons of the conduct rule.
- Dept of Enforcement is the first to hear and judge complaints.
- - National Adj Council - hears the appeal and reviews the decision
Securities Exchange of 1934
Regulates the 2ndary Mrkt, regulates the exchanges and OTC markets.
Created the FRB with reg T to manage extention of credit.
Also regulates the reps and others invovling transactions of securities
MAX $500K IN Securites & $250K in Cash
- Protected only from fraud. Per account
- Ex. if a couple have an account for the husb, the wife and the joint account, that's 3 accounts that's covered.
ANNUAL firm meeting required for all securites reps.
2nd anniversary within 120 days and every 3 years afterwards.
FINCEN FORM 112 (CTR)
10K OR MORE must be reported within 15 Days
the form needed to register you with as an IA either with the state, or the SEC depending on the level of AUM's.
- Omitting Prospectus (AKA)
- Past performance may show 1, 5 and 10 yr return.
Must show how to obtain a prospecuts before purchasing shares.
No Load Fee
Max 12B-1 fee is .25%
National Adjucaicatory Council
- Authorized by Finra to act for them... 12-14 members appointed by Finra board of governors
- They Hear appeals from the Dept of Enforcement
INTRO BROKER DEALER
- Doesn't clear it's own trades or hold customers assets.
- Lower min net cap req.
- has carry firm hold the assets and process the trades.
- If they receive assets, they must transmit them.
- MIN NET CAP IS $50K if it does receive and forward funds, $5K if they don't.
Regular Way Settlement
- Type of individual where the account holder designates someone to receive their funds upon death.
- No special document needed.. assets pass without probate.
Risk assocated with the results of buying/selling the security at the wrong time.
the first printed advertisement announcing a new securities offering. Only Idications of Interest can be taken.
Person engaging in some type of private securities transactions with the express written persmission and knowledge of their employing BD.
- Deduction from net worth taken against the value of marketable securities
- - reduces firms net capital
- - Standard rate is 15% on common Stock
Code of Arbitration
- How all disputes between firms, employees, and clearing corps are settled.
- - Can be used with customers, if cust agrees to the procedure.
- Way of Settling without the courts getting Involved.
- - Under $50K = Simplified Arb
- -Mediation is optional before Arbitration
Finra Conduct Rules
Regs desginged to ensure finra members and their RR's follow fair and ethical trade proactices when dealing with the public.
Durable Power of Attorney
Survives mental incompetency
Terminates upon Death
Uniform Practice Code (UPC)
Policy that establishes guidelines for member firms deatling with each other.
Valued at 50%
Written inclding electronic communication that is distributed or made avaliable to 26 or more retail investors within 30 calendar day period.