Podcast
Questions and Answers
What should be done if client orders are entered against the advice of the IA?
What should be done if client orders are entered against the advice of the IA?
- Consult the branch manager before deciding on the orders
- Do not mark the orders as 'unsolicited' to avoid raising red flags
- Mark the orders as 'unsolicited' and document the circumstances of the transaction (correct)
- Ignore the advice and proceed with the orders
What is the foremost consideration in all business dealings for registrants?
What is the foremost consideration in all business dealings for registrants?
- The client's interest (correct)
- The branch manager's interest
- The compliance department's interest
- Their own interest
Under what circumstances may firms refuse to accept orders?
Under what circumstances may firms refuse to accept orders?
- When the orders are too complicated
- When they are too busy
- When the orders are unsuitable (correct)
- When they are implementing new policies
What should be done if IAs are unable to dissuade clients from making apparently unsuitable trades?
What should be done if IAs are unable to dissuade clients from making apparently unsuitable trades?
What should registrants be able to do in addition to 'Know Your Client'?
What should registrants be able to do in addition to 'Know Your Client'?
What could happen if a client complained about poorly performing securities?
What could happen if a client complained about poorly performing securities?
What changes must compliance registrants document about their clients' situations?
What changes must compliance registrants document about their clients' situations?
What did Stanley Kowalski do after discussing the speculation with Doris Green?
What did Stanley Kowalski do after discussing the speculation with Doris Green?
What must the firm do in relation to any business dealings outside of normal business?
What must the firm do in relation to any business dealings outside of normal business?
Under what conditions should the IA place securities with clients?
Under what conditions should the IA place securities with clients?
What must be done with regards to recording trades and issuing statements to clients?
What must be done with regards to recording trades and issuing statements to clients?
In the example provided, what was the relationship between IA Edgar Brown and his client Michelle Green?
In the example provided, what was the relationship between IA Edgar Brown and his client Michelle Green?
