CRPC Fiduciary, Ethical, and
Regulatory Issues for Advisors4
The provision that certain mutual fund policies cannot be changed without shareholder
approval is addressed in the: - ANSWERS-Investment Company Act of 1940.
A major responsibility of FINRA is - ANSWERS-Developing rules and regulations for its members.
The recent regulatory and industry developments regarding fiduciary advice will most likely: -
ANSWERS-increase client expectations of advisers and put downward pressure on fees.
Which act repealed a prohibition that had been in place preventing financial institutions from
offering a combination of commercial banking, investment banking, and insurance services? -
ANSWERS-Gramm-Leach-Bliley Act of 1999
The Employee Retirement Income Security Act (ERISA) was primarily passed because of concern
regarding the integrity and safety of: - ANSWERS-employer-sponsored retirement plans.
An investment professional who reads investment journals is complying with the: - ANSWERS-
duty to keep current.
You sell your client a GNMA based on your explanation that they are "safe" because they are
guaranteed by the U.S. government. In which one of the following ethical duties may you have
failed your customer? - ANSWERS-Duty to disclose
Confidentiality is an important ethical obligation for all those who render investment advice.
The CFP Board, however, allows the unauthorized disclosure of confidential client information
in: - ANSWERS-connection with a civil dispute between a CFP certificant and a client.
Regulatory Issues for Advisors4
The provision that certain mutual fund policies cannot be changed without shareholder
approval is addressed in the: - ANSWERS-Investment Company Act of 1940.
A major responsibility of FINRA is - ANSWERS-Developing rules and regulations for its members.
The recent regulatory and industry developments regarding fiduciary advice will most likely: -
ANSWERS-increase client expectations of advisers and put downward pressure on fees.
Which act repealed a prohibition that had been in place preventing financial institutions from
offering a combination of commercial banking, investment banking, and insurance services? -
ANSWERS-Gramm-Leach-Bliley Act of 1999
The Employee Retirement Income Security Act (ERISA) was primarily passed because of concern
regarding the integrity and safety of: - ANSWERS-employer-sponsored retirement plans.
An investment professional who reads investment journals is complying with the: - ANSWERS-
duty to keep current.
You sell your client a GNMA based on your explanation that they are "safe" because they are
guaranteed by the U.S. government. In which one of the following ethical duties may you have
failed your customer? - ANSWERS-Duty to disclose
Confidentiality is an important ethical obligation for all those who render investment advice.
The CFP Board, however, allows the unauthorized disclosure of confidential client information
in: - ANSWERS-connection with a civil dispute between a CFP certificant and a client.
