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Questions and Answers
What is the primary purpose of Section 400 of the Capital Markets and Technology Associations (CMTA)?
What is one of the key compliance obligations outlined in Section 400?
What type of report must members submit to the CMTA on a regular basis?
What is a consequence of non-compliance with Section 400 obligations?
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Which type of member has additional compliance obligations related to customer protection rules and best execution standards?
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What is the purpose of the annual audits required by Section 400?
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Which entities are required to implement a Cybersecurity Risk Management Program (CRMP) according to Section 404 of the CMTA?
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What is the first step in implementing a CRMP according to Section 404 of the CMTA?
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What is the purpose of the Cybersecurity Risk Management Plan in a CRMP?
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What is the final step in implementing a CRMP according to Section 404 of the CMTA?
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How often must covered entities update their CRMP according to Section 404 of the CMTA?
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What is the overall goal of a CRMP as required by Section 404 of the CMTA?
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Study Notes
Compliance Obligations under Section 400 of CMTA
Overview
- Section 400 of the Capital Markets and Technology Associations (CMTA) outlines the compliance obligations for members
Key Compliance Obligations
- Registration: Members must register with the CMTA and provide required information
- Net Capital Requirements: Members must maintain minimum net capital requirements as specified by the CMTA
- Financial Reporting: Members must submit regular financial reports to the CMTA
- Audit Requirements: Members must undergo annual audits and submit audit reports to the CMTA
- Business Conduct: Members must comply with CMTA rules and regulations regarding business conduct, including fairness, integrity, and transparency
Specific Requirements for Different Members
- Broker-Dealers: Must comply with additional requirements, including customer protection rules and best execution standards
- Investment Advisers: Must comply with additional requirements, including fiduciary duty and disclosure obligations
- Funding Portals: Must comply with additional requirements, including crowdfunding rules and investor protection standards
Consequences of Non-Compliance
- Fines and Penalties: Failure to comply with Section 400 obligations may result in fines and penalties
- Suspension or Revocation: Repeated or severe non-compliance may result in suspension or revocation of membership
- Legal Action: In severe cases, non-compliance may result in legal action by the CMTA or other regulatory bodies
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Description
This quiz covers the compliance obligations for members under Section 400 of the Capital Markets and Technology Associations (CMTA). Topics include registration, net capital requirements, financial reporting, and more. Learn about the specific requirements for different members and the consequences of non-compliance.
