Statutory Disqualification correct answers Applies if you have been convicted of securities fraud- 10 yr. statuate of limitations from time of offense; pardoning just wipes financial penalty(not the offense/disqualification implications)
Highest Expense Ratio Product correct answers Highest: VA'...
SERIES 26 || A Verified A+ Pass.
Statutory Disqualification correct answers Applies if you have been convicted of securities
fraud- 10 yr. statuate of limitations from time of offense; pardoning just wipes financial
penalty(not the offense/disqualification implications)
Highest Expense Ratio Product correct answers Highest: VA's... ETF's, UIT's, Index Funds all
have low expenses due to not being actively managed.
Complaints correct answers must be held in compliance for 4 yr minimum
Qualified VA's correct answers All distribution's are taxed as ordinary income; as money funding
is pre-tax
Do Not Call list correct answers Firm has a DNC list, National DNC list (Finra & SEC don't
have a DNC list)
Active Member correct answers had account activity in last 12 months and has current security
position with firm; can be called outside normal hours
Whole Life and Fixed annuity have what in common correct answers they are not securities;
insurance companies guarantee their returns so Blue Sky Laws don't count them as securities
SEC RULE 17f-1 correct answers governs reports that must be filed if securities are discovered
or suspected of being lost, stolen, missing, or counterfeit.
SEC RULE 17a-13 correct answers requires a broker-dealer to make a physical examination and
count of all securities in its possession at least once in each calendar quarter.
SEC RULE 15c3-1 correct answers a broker-dealer that carries customer accounts and receives
or holds funds and securities (a general securities firm) must have net capital of $250,000. A
broker-dealer that carries accounts, but does not hold customer funds or securities, must maintain
net capital of $100,000.
Deferred Comp Plan correct answers they are non-qualified, delayed payment plan
Correspondance correct answers sent to 25 or fewer, must be reviewed by a principal
Branch Office correct answers An office where the firm's associated personnel regularly conduct
the business of effecting transactions or inducing or attempting to induce the purchase or sale of
securities
Regulation FD correct answers Applies to issuers of Securities; In the event of an accidental leak
of information, the company has 24 hours to release the information to the public.
Public Communications correct answers a record must be kept for 3 years
, Location of Convenience correct answers a location primarily used for nonsecurities business
and from which less than 25 securities transactions are effected annually.
Fixed Annuity correct answers investment return is guaranteed by ins. company; guarantee is
only as good as ins. company behind it
Durable POA correct answers durable power of attorney gives someone else the power to
manage the grantor's financial affairs if she becomes incapacitated. A standard (nondurable)
power of attorney terminates if the grantor becomes incapacitated.
S26 Principles correct answers May supervise investment company securities and variable
products. May continue to produce.
Regulation S-P correct answers a consumer must be provided a reasonable opportunity to opt out
of information sharing.
Inspection Timeframes correct answers OSJ- every year; Branch office- every 3 years
Mediation correct answers informal resolution process; non-binding, attorneys may be present, if
resolution is not reached Arbitration is the next step
Equity Indexed Annuity (EIA) correct answers a fixed annuity that follows an index;
If the index under performs, the client receives the minimum rate. If the index performs well,
investors will receive the indexed return up to a maximum capped rate.
Equity Indexed Annuity (EIA) correct answers only typically guarantees a client receives 90% of
the premiums paid; just a portion of the principal back. If client surrenders contract prematurely
they pay a penalty plus a market value adjustment based on a formula.
Participation Rate (EIA's) correct answers Percentage of the index return the client receives (ex:
the client is entitled to 80% of the index return capped at a 12% maximum. The index earned
10%, so the client receives 80% of that amount, or 8%.)
Do Not Call List correct answers If a person requests to be added; their addition is indefinite
Rights of Accumulation Formula correct answers (existing shares x the offering price) + new
investment amounts = investment total. Rights of accumulation are applied to the investment
total to determine a breakpoint.
2 types of Permanent Life Insurance correct answers Whole Life and Universal Life
Whole Life Insurance correct answers lasts as long as you live. Level premiums, fixed death
benefits, has living benefits. Invested in a high-interest bank account that grows with each
payment. Taxes are deferred, you can borrow against your cash value or surrender the policy to
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