CRPC Chapter 9 EXAM | Questions And Answers Latest {2024- 2025} A+ Graded | 100%
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Trust in the system in Financial Services - Subprime mortgage crisis - systematic breakdown in
accountability and ethics -Financial crisis inquiry commission
Edelman Trust Barometer - Various industries level of trust in industries
FI bottom of rankings
Stock market done well
Trust in financial industry remains low despite the recovery since 2008-2009 Great Recession.
Pershing study and comments from the CFA institute - Clients concerned about fiduciary standard than
FAs are
Highlight trust issues and concerns
CFA Institute a crisis of culture annual report warning after 2008 meltdown - Breakdown in financial
industry will have consequences
Occupy Wall Street
Focus on fees and fiduciary standards
Wave 1 - results of crash and Great Depression Securities Act of 1933 - The first major federal law
regulating the securities industry. It requires firms issuing new stock in a public offering to file a
registration statement with the SEC.
Cover initial public offerings
If SEC finds misleading or inaccurate info it will delay the offering until registration statement is
corrected.
All new issues must be accompanied by a prospectus.
Securities exchange act of 1934 - Established the securities and exchange commission and aimed to
regulate securities transactions on both organizedabd OTC MARKETS
Broker dealers to register with SEC
File quarterly financial statements with SEC
, Investment advisors act of 1940 - Requires the registration of investment advisors who charge fees for
investment advice
ADV2B form
Prohibitions re: advertising practices
Inv advisors with $100 million AUM register with the SEC
Investment company act of 1940 - provides a definition of "investment company"
Dealing with mutual funds to detailed regulations
Diversified or non diversified management companies
Custodian to safeguard securities
Proceeds of redeemed shares be sent to shareholders within 7 days of redemption
Wave 2
Securities investor protection act of 1970 - Protection of brokerage accounts
Oversee the liquidation of brokerage firms and insure investor accounts to $500k, $250k can be cash
balances in case of bankruptcy of a brokerage firm
It does not cover market losses due to Inv fraud
Not the same as FDIC
Cost of ins pd by members
ERISA (Employee Retirement Income Security Act) of 1974 - Enacted to stem Company sponsored
retirement plans abuses
Fiduciary standard in workplace
5 criteria must be met:
Participation
Vesting
Funding
Reporting
Verified
Trust in the system in Financial Services - Subprime mortgage crisis - systematic breakdown in
accountability and ethics -Financial crisis inquiry commission
Edelman Trust Barometer - Various industries level of trust in industries
FI bottom of rankings
Stock market done well
Trust in financial industry remains low despite the recovery since 2008-2009 Great Recession.
Pershing study and comments from the CFA institute - Clients concerned about fiduciary standard than
FAs are
Highlight trust issues and concerns
CFA Institute a crisis of culture annual report warning after 2008 meltdown - Breakdown in financial
industry will have consequences
Occupy Wall Street
Focus on fees and fiduciary standards
Wave 1 - results of crash and Great Depression Securities Act of 1933 - The first major federal law
regulating the securities industry. It requires firms issuing new stock in a public offering to file a
registration statement with the SEC.
Cover initial public offerings
If SEC finds misleading or inaccurate info it will delay the offering until registration statement is
corrected.
All new issues must be accompanied by a prospectus.
Securities exchange act of 1934 - Established the securities and exchange commission and aimed to
regulate securities transactions on both organizedabd OTC MARKETS
Broker dealers to register with SEC
File quarterly financial statements with SEC
, Investment advisors act of 1940 - Requires the registration of investment advisors who charge fees for
investment advice
ADV2B form
Prohibitions re: advertising practices
Inv advisors with $100 million AUM register with the SEC
Investment company act of 1940 - provides a definition of "investment company"
Dealing with mutual funds to detailed regulations
Diversified or non diversified management companies
Custodian to safeguard securities
Proceeds of redeemed shares be sent to shareholders within 7 days of redemption
Wave 2
Securities investor protection act of 1970 - Protection of brokerage accounts
Oversee the liquidation of brokerage firms and insure investor accounts to $500k, $250k can be cash
balances in case of bankruptcy of a brokerage firm
It does not cover market losses due to Inv fraud
Not the same as FDIC
Cost of ins pd by members
ERISA (Employee Retirement Income Security Act) of 1974 - Enacted to stem Company sponsored
retirement plans abuses
Fiduciary standard in workplace
5 criteria must be met:
Participation
Vesting
Funding
Reporting
