Compliance

Compliance Awareness Quiz

Test your knowledge of compliance regulations and practices that are essential for maintaining ethical standards in the financial services industry. This quiz covers crucial topics that every financial professional should understand.

Are you ready to challenge yourself? Here are some key areas covered:

Fiduciary duties
Client communication guidelines
Document retention policies
Investment parameters and strategies

13 Questions3 MinutesCreated by AnalyzingData27

If the Company receives a check from a client payable to a third party such as a custodian, the Company will make a photocopy of the check, issue a receipt to the client and then forward the check directly to the third party. A copy of the check, the receipt, and the transmittal form will be kept in a master custody file.

True

False

Where the Company has limited authority to transfer a client's funds or securities between accounts owned by the client and maintained at one or more qualified custodians, the client must authorize the adviser verbally to make such transfers.

True

False

Fiduciary duties in the context of portfolio management does not include the following:

Telling clients before making trades

Making full and fair disclosure to the client of all material facts and when an actual or potential conflict of interest exists.

Exercising reasonable care to avoid misleading clients.

Providing only investment advice that is suitable to each individual client's needs, goals and objectives and personal circumstances.

In establishing a new client relationship, the Company will obtain the following investment parameters about the prospective client and record such information on a suitability questionnaire:Client’s birth year and employment status, including occupation;Client's investment objectives;Level of the client’s risk tolerance;Time horizon;Client's income and net worth, excluding the value of the client's primary residence;Target asset mix;Whether the account be reallocated if market shifts and if so how often;Client's preferred asset mix;Client restrictions on investments, issuer, industry, and or geographic area.

Client’s birth year and employment status, including occupation;

Client's investment objectives;

Level of the client’s risk tolerance;

Time horizon;

Client's income and net worth, excluding the value of the client's primary residence;

Target asset mix;

Company and its Associated Persons must have a reasonable basis for determining or recommending an investment transaction or an investment strategy. Prior to implementing transactions, selecting a program, or making a recommendation, each Associated Person must:

Text the client about recommendations

Follow an investment strategy with respect to that client, which is approved by the Company and that is appropriate for the client in light of the information obtained;

Which does not need to be maintained in a clients folder?

Pet's name

Signed client contracts;

Client Profiles and/or Suitability documents (may be included in signed contracts);

No Associated Person may give or offer any gift of more than de minimis value to existing clients, prospective clients, or any entity that does business with or on behalf of the Company without written pre-approval by the CCO. Gifts received from or given to the same source valued at $500.00 or less will be considered de minimis.

True

False

Compliance

Compliance Awareness Quiz

More Quizzes