3136920
Description
Flashcards by Tammara0214, updated more than 1 year ago
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Created by Tammara0214
almost 9 years ago
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| Question | Answer |
| * Investment Advisor * | A person that for compensation engages in the business of advising others, either directly or through publications or writings, as to the value of securities or the advisability of investing in, purchasing or selling securities or that, for compensation and as a part of a regular business, issues or promulgates analysis or reports concerning securities. |
| * Investment Advisor * | A person that also calls themselves a financial planner or other person that as an integral component of other financially related services, provides investment advice to others for compensation as part of a business or that holds itself out as providing investment advice to others for compensation. |
| 1. An investment advisor representative 2. A layers, accountant, engineer, or teacher whose performance of investment advice is solely incidental to the practice of the person's profession. (remember LATE) 3. A broker dealer or its agents whose performance of investment advice is solely incidental to the conduct of business as a broker dealer and that does not receive special compensation(aka remuneration) for the investment advice. | When is a person not an investment advisor as it relates to reps, LATE & Broker Dealers? |
| 4. A publisher of a bona fide newspaper, news magazine, or business or financial publication of general and regular circulation, that doesn't consist of rendering of advice on a basis of the specific investment situation of each client. 5. A federal covered investment adviser (advisers registered with SEC) 6. A bank or savings institution. (institutional clients) | When is a person not an investment advisor (name 3 others)? |
| * Investment Advisor * | Defined as a company or a firm that is in the business of providing investment advice for a fee. |
| * Investment Advisor * | Even though this person can register as a sole proprietor, for the exam think of this person as a firm that hires others |
| Investment advisors can advice through writing or publication. | Investment advisors can advice through what devices? |
| When the answer is yes to these 3 questions a person can be defined as an Investment Advisor | 1. does the professional receive compensation in any form as a result of advisory activities? 2. does the professional provide investment advice on securities? 3. does the professional engage in regular business of providing advice on securities? |
| When the BD manages a clients account, takes assets under mgmt. and charges a wrap fee. | What is the exception of when can a Broker Dealer also be an Investment Adviser? |
| When the bank is a subsidiary bank | What is the exception of when can a Bank also be an Investment Adviser? |
| A banking operation incorporated in the country where it operates but is owned by a parent bank incorporated in another nation. | What is a subsidiary bank? |
| Main purpose is to sell and buy securities. The subsidiary bank can not underwrite securities and follows the regulations that apply to the place where it was incorporated. | Why set up a subsidiary bank and what is its purpose? |
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