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| Section | Weight | Objectives |
|---|---|---|
| Obtains and Verifies Customers’ Purchase and Sales Instructions; Processes, Completes and Confirms Transactions | 10% | - Trade confirmations and account statements - Error resolution and correction procedures - Order entry and processing procedures - Payment and settlement processes |
| Provides Customers with Information About Investments, Makes Recommendations, Transfers Assets and Maintains Appropriate Records | 50% | - Variable contracts: variable annuities, variable life insurance - Recordkeeping and disclosure requirements - Investment company products: mutual funds, UITs, closed-end funds - Suitability rules and recommendations - Retirement plans and 529 savings plans - Product features, risks, costs, and tax considerations |
| Seeks Business for the Broker-dealer from Customers and Potential Customers | 24% | - Communications with the public and regulatory rules - Telemarketing and solicitation rules - Prospecting and identifying customer needs - Advertising and sales literature regulations |
| Opens Accounts After Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives | 16% | - Anti-money laundering (AML) and compliance - Customer identification and verification - Financial profile and investment objectives assessment - Account types and registration |
Your client, Mr. Whiff, knows nothing about investment companies, and you are educating him about the
advantages of investing through one, rather than investing in individual stocks and bonds. Which of the
following statements could get you in trouble?
Correct Answer: D 🗳️
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Which of the following would be the most suitable investment for a client who has retired and needs some
current income to augment her social security check?
Correct Answer: A 🗳️
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NASDAQ is:
Correct Answer: D 🗳️
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A broker-dealer is required to file a Currency Transaction Report with the Treasury Department for:
Correct Answer: C 🗳️
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George Geek is 30 years old, single, and earns $103,000 a year as a software engineer for a small,
start-up IT company. George's company does not itself offer a retirement plan, and George is considering
his options. The current contribution limits for both the traditional IRA and Roth IRA plans is the lesser of
$ 5,000 or 100% of earned income. Which of the following statements applies to George's situation?
Correct Answer: D 🗳️
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