APMA Module 9: Chp. 2: Forces
Changing Financial Services Question
and answers verified to pass
2025/2026
Forces Changing the Securities Industry - correct answer ✔- changes of structure in individual firms
- price & transactions vs. relationships
- increased competition, complexity, & pace
- difficulty of supervising technical specialists
- RAND study
- language & terminology (wolf in sheep clothing)
- misleading credentials (CFA vs. fake designation)
- common sources of ethical conflicts
Large Size; Public Corporations - correct answer ✔The (blank) of modern day securities firms make it
increasingly difficult to develop ethical and compliance standards in the community. Also, as (blank),
there is pressure to generate higher earnings, which can lead to conflicts of interest.
Price/Transaction Fees; Relationships - correct answer ✔The increasing emphasis on (blank) over the
last quarter century has replaced the once important (blank) of client's and IAs. Clients now may shop
for internet trading, which not only accentuates price competition but also fosters independence of
customers from their investment professionals.
RAND Study - correct answer ✔In 2007, the SEC commissioned (blank) to better understand the current
financial landscape. They contacted households and held focus groups to find out if investors
understood the differences between broker-dealers and IAs, and found that investors do not
understand the typical services of financial professionals.
Changing Financial Services Question
and answers verified to pass
2025/2026
Forces Changing the Securities Industry - correct answer ✔- changes of structure in individual firms
- price & transactions vs. relationships
- increased competition, complexity, & pace
- difficulty of supervising technical specialists
- RAND study
- language & terminology (wolf in sheep clothing)
- misleading credentials (CFA vs. fake designation)
- common sources of ethical conflicts
Large Size; Public Corporations - correct answer ✔The (blank) of modern day securities firms make it
increasingly difficult to develop ethical and compliance standards in the community. Also, as (blank),
there is pressure to generate higher earnings, which can lead to conflicts of interest.
Price/Transaction Fees; Relationships - correct answer ✔The increasing emphasis on (blank) over the
last quarter century has replaced the once important (blank) of client's and IAs. Clients now may shop
for internet trading, which not only accentuates price competition but also fosters independence of
customers from their investment professionals.
RAND Study - correct answer ✔In 2007, the SEC commissioned (blank) to better understand the current
financial landscape. They contacted households and held focus groups to find out if investors
understood the differences between broker-dealers and IAs, and found that investors do not
understand the typical services of financial professionals.
