Firm Element CE - FINRA Continuing Education

Firm Element Courses

2011-11-27T11:14:00.000-08:00

Begin your securities ce firm element course training online using our virtual university. Each course is approved and designed to earn each licensed individual their firm element continuing education credits.

All credit hours and subjects can be viewed beforehand. Each CE subject completed is reported and logged.

All licenses are approved including Series 7, Series 24, Series 6 and Series 27.

VIEW ALL SUBJECTS HERE - View all subjects and free demo samples on each one. All are approved for continuing ed credit hours.

Have multiple Reps or Looking for group Firm Element course rates?: Contact our corporate training director nickhunter@aitraining.com

Course credit subjects include:

Principles of Fraud and Consumer Protection - An increasingly global marketplace and a sometimes-unstable economy have driven many in the business sector to seek alternative methods of profit and success: fraudulent activities. Increased scrutiny has placed fraud awareness at the forefront of the marketplace; recognizing the warning signs and having anti-fraud measures in place can greatly reduce a company or individual’s liability, and protect consumers.

Mutual Funds - These are important investment instruments that have been essential to both individual and corporate investors for well over a century. This CE training course begins with a brief overview of basic investment principles and the evolution of mutual funds, this course addresses the fundamentals of mutual funds, how they are categorized, their roles and functions, and their investment characteristics. Compliance and regulatory issues are also examined.

529 Plans - The cost of an average four-year college education is estimated to soon grow to $100,000, and tuition is rising annually. Without a proper investment strategy, funding a child’s college education is prohibitive for many Americans. 529 Plans (The Plan) provide investors with a means of earmarking investments specifically for educational purposes. This CE training provides an overview of 529 Plans and their components, compliance issues associated with them, and how to determine the right plan for your client.

VIEW ALL SUBJECTS HERE - View all subjects and free demo samples on each one. All are approved for continuing ed credit hours.

Anti Money Laundering CE Course

2011-09-22T08:04:00.000-07:00

Financial institutions are at the forefront of the battle against the money launderers. It is not only their institutions that the money launderers target to use in their various nefarious schemes but under current legislation they are responsible for policing the financial dealings and reporting any suspicious transactions. 1 Hour

Over 50 courses available

Ethics and Suitability
Anti Money Laundering
Securities Products, including mutual funds, annuities, bonds and options
FINRA Rules and Regulation
Economics and more

Visit: Firm Element CE Training

Series 65 Courses

2011-03-09T12:56:00.001-08:00

Our CD Software Program for the Series 65 is designed to get you to pass the exam fast. It is a perfect addition to any study material you have. Even if you are not using our books!

Did you fail the exam already using other material? or do you just want accurate Series 65 Test Questions to pass the exam the first time fast?

Many reasons to use the Series 65 CD program from American Investment Training. - We have been providing CD test programs with great success for over 12 years! (testimonials below)

This program uses exam tough questions. a 75% is a 75% with THIS program. Were you scoring higher using another program and then still failed? Does not happen with our CD.

Our students are NOT surprised by what they see when they take the real test after using our program.

Can install on more than one machine

Each question has a detailed explanation that not only explains which answer is correct, but also explains why the other answers are wrong for the more complex concepts.

More Features:

9 Final Exams. Fully updated!
Detailed Answer Explanations
Full Color
Can Install on more than one machine

FREE SHIPPING FOR TODAY THROUGH THIS PAGE - Fast delivery normally 2-3 days. American Investment Training:
SERIES 65 Software Prep

Insurance CE Courses

2011-03-08T05:09:00.000-08:00

American Investment Training AIT offers a virtual university for insurance continuing education CE credits. The courses are online and satisfy the insurance industry requirements in your state.

All licensed insurance agents must complete a certain amount of CE courses on an ongoing basis. The training is available for life insurance brokers, property and casualty and others.

The training is available on line and can be printed. You can also purchase printed material, if you prefer doing your course work that way.

Life Insurance CE

We have over 25 Life courses to satisfy the continuing education requirements needed. Credits include annuity, estate planning, long term care, investing and more.

Property and Casualty Continuing Ed
Over 2 dozen P & C courses can be taken online. The catalog for CE credits include flood insurance and risk management, auto, property and more.

Group Continuing Education

If you are a manager of a firm looking for group CE on an ongoing basis, please contact us directlty or visit our virtual site.
Visit: Online Life and Health CE Courses for full catalog of all states and all lines.

Life Agent Insurance Continuing Education Courses - Life and health CE

2010-03-10T14:28:00.000-08:00

American Investment Training provides life and health ce continuing ed courses for insurance agents in all states where continuing education is required.

Life, Health and P & C Courses include:

Life Insurance Concepts - Life Insurance Concepts examines the important concepts affecting life insurance, its uses and taxation. The text considers the fundamental purposes of life insurance, including its use in the personal family market as a tool for the creation of an estate and for its conservation. Students are introduced to the concept of a life insurance policy as a contract. In that introduction, the roles of the parties to the contract are examined as are the technical issues involving offer, acceptance and consideration.

Health Agent, life Agent, Annuities and more.

Low cost per course or bundled for fast continuing education credit.

American Investment Training:

Life and Health CE Courses

CFA Test Training - CFA Exam Course, Online Training

2009-08-24T07:45:00.000-07:00

Prepare for the CFA Level 1 exam in December or June using American Investment Training's CFA Study guide material with DVD class instruction. All study notes are update for 2009. Level 1, Level 2 and Level 2 exam training prep available.
Includes 2 Study Note Textbook of over 1200 pages - with real exam questions and detailed answers to reinforce study topics.

Online test access to over 6000 CFA tests

Classes

Over 46 hours of class lessons on DVD for use on your PC or TV.

DVD class instruction is included in the prep course for Chartered Financial Analyst. This set has 18 sessions averaging 1 1/2 hours per class. It is an actual filmed class with additional graphics.

FREE SHIPPING anywhere in the world when bought using Google Checkout.

The free shipping can save some CFA students over $60 in carrier cost.

Pass the CFA exam by using the most effective study material available.

Visit American Investment Training

CFA STUDY - PASS GUARANTEE INCLUDED

Series 7 Live Class - Series 7 Classes

2009-06-25T08:45:00.000-07:00

American Investment Training provides onsite live Series 7 training classes for firms and organizations around the world. AIT also has updated and powerful home study based training materials and Online Courses.

The Series 7 License course can be studied using the books and CD test program or using only books. The books contain a large amount of test questions (over 3000). Our Series 7 CD certification program is a powerful program that has over 7000 practice questions with detailed answers. This program will show each correct answer after each answer is chosen. Most of our prep students feel the combination course of the Series 7 books and CD offers the fastest method to passing. The CD program tests are "exam tough", if not a little harder than the actual test.

Class training can be delivered online or in a conference room live.

The exam is a 250 question test delivered in multiple choice form.

A 70% is needed to pass the test. All online training and live classes are geared to get an American Investment Training student to pass the exam the first time.

Visit Series 7 Class

Series 24 Test Prep - Exam Course Training

2009-06-09T10:32:00.000-07:00

American Investment Training provides updated and exam tough home study courses for the Series 24 exam. The complete course includes a 3 ring binder text book with over 600 pages. Chapter exams with detailed answers are also included. Over 1500 exam questions and 9 final tests.

Sample Test Questions: (5)

1. When an order is received from a customer, a written record of the order must be prepared:

a. prior to the time the order is given to the trading department
b. prior to the time that execution is confirmed by the trading desk
c. prior to the time the confirmation is mailed to the customer
d. prior to the time the transaction settles

2. An institutional customer says the following to his broker: “Buy 100,000 shares of ABC stock whenever you think the time is best. This order is good unless I call you to cancel.” Which statement is true about the handling of this order?

a. An executed power of attorney must be obtained from the customer prior to accepting the order
b. The order must be executed by the close of the market on that trading day
c. The order can be accepted as given, and can be executed at the discretion of the brokerage firm at any time or day
d. This order can only be accepted if the customer places it via fax or e-mail

Study Material

The Series 24 course training offered by American Investment Training includes: Series 24 Books and CD Test Programs. Course material includes hundreds of chapter and final exam test questions to prepare the student for a passing grade, the first time.

The AIT study course prepares students by providing accurate and tough test questions to pass the exam.

Specifics of home study material:

Study Book with over 600 pages. Chapter Exams after each section with detailed answers.

Over 1500 updated chapter and final exam questions in the books.

Includes seven simulated Final exams with detailed answers.

Computer CD Test Simulator - 9 Final Exams with detailed explanations. Over 1000 additional and updated questions.

Get the American Investment Training full home study course - updated
Buy the Full course Now Through PayPal ($375)

Business Conduct Practices CE

2009-05-17T11:18:00.000-07:00

Business Conduct Practices for firm element continuing education.

Employee conduct is essential to the success of any business, but this is especially true for the financial industry. The aim of Business Conduct Practices is to enable a company to meet compliance and risk management responsibilities in an efficient and effective manner. This course provides a basic understanding of the concepts associated with business conduct and presents an ethical framework within which an employee may interact with various entities. Business conduct practices are defined at the outset, followed by explanations of the ethical issues associated with various business interfaces, and the appropriate behavior with which a professional should deal with external and internal customers, shareholders, business partners, and competitors. The nature of regulation is also touched upon within this course.

LEARNING OBJECTIVES:

• Understand the concept of proper business conduct.
• Comprehend the necessity of integrating ethics and values in sound business dealings.
• Recognize the different types of business entities that employees may interact with.
• Understand business conduct practices when dealing with both internal and external customers.
• Understand business conduct practices when dealing with business partners.
• Understand business conduct practices when dealing with regulatory bodies.
Be aware of the need for compliance toward laws and statutes and the positive effect that this will have on business.

TOPICS COVERED:

• Introduction
• Lesson 1: An Introduction to Business Conduct
• Lesson 2: Dealing with External Customers, Internal Customers and Shareholders
• Lesson 3: Dealing with Business Partners
• Lesson 4: Dealing with Competitors & the Nature of Regulation

Visit the American Investment Training online university for firm element ce:

VIEW ALL SUBJECTS OR BEGIN CREDITS HERE

PIPE - Private Investment in Public Equity

2009-02-10T09:49:00.000-08:00

Series 7 Study

Retirement Planning Strategies

2009-01-18T18:01:00.000-08:00

American Investment Training's Retirement Planning CE Credits

The purpose of this course is to provide a thorough orientation to the concept of retirement planning and how the licensed producer – through the products and services he or she offers – can help consumers plan for this vital stage of their lives. The course focuses on products and plans that are specifically designed to accumulate and distribute retirement funds and ensure financial security for late-life health care needs. The course covers the basics of developing a retirement funding plan, the many plans that are available for accumulating retirement savings, and the types of investment products that can be used to fund a retirement plan. Also addressed is the complex topic of retirement plan distributions and the many rules and regulations that surround this issue. Finally, the course addresses the subject of health care for the retiree, and the available plans that cover this need, including Medicare, Medicare supplement policies and long-term care insurance policies.

The course covers the following topics:

The New Retiree
Basics of Retirement Planning
Social Security
Qualified Employer Plans
401(k) Plans
Retirement Plans for Small Businesses and the Self-Employed
Individual Retirement Accounts
Annuities
Retirement Plan Distributions
Health Care for the Retiree

State Insurance CE Courses

Mergers and Acquisitions Training - M & A Course Credit FINRA

2008-11-30T16:08:00.000-08:00

Take a mergers and acquisition firm element continuing education course from American Investment Training

Part 1 - 1 hour approved CE credits

This course provides a concise overview of the merger and acquisition process, including the legal process, federal regulations. The course also explains the various advantages and motivations for a company to consider the option of merger and acquisition. The purpose of the course is to give the user a solid understanding of the different legal and regulatory considerations that play a very important part in the M&A decision making.

Part 2 - 2 hours training

This course helps provide further understanding of the Merger and Acquisition process, highlighting the due diligence required and the consequences of not conducting a deep and thorough due diligence before and during the merger and acquisition procedure. The students will also understand the different steps required for the valuation of the Target Company and the financial understanding required by the students of Mergers & Acquisitions.

Part 3 Online Finra Frim Element

This course continues with an overview of the merger and acquisition process, including the valuation process, post merger integration and anti-takeover defenses. The purpose of this course is to give the user a solid understanding of how mergers and acquisitions work. This course deals with advanced concepts in valuation.

Begin FINRA Courses - Free demo Online

Principal Manager Firm Element CE - Supervisor FINRA Continuing Education

2008-11-17T17:07:00.000-08:00

Series 24 Training

Series 24 Test Questions Explanations - Series 24 Principal FINRA

2008-11-01T17:04:00.000-07:00

Series 24 Course

Series 4 - Options Principal FINRA CE

2008-11-01T16:15:00.000-07:00

Series 4 Options Principal Firm Element CE

Firm Element CE Courses

Anti Money Laundering Regulation - AML FINRA Rules

2008-08-12T17:54:00.000-07:00

Firm Element and the coverage of anti money laundering (AML) is an important part of regulatory and firm element FINRA CE.

Money laundering is the process of filtering the proceeds derived from illegitimate criminal activities through one or more legitimate financial transactions. The goal is to place funds from illegitimate activities into the legitimate financial system without attracting attention.

A straightforward example of money laundering involves the drug dealer who receives cash from the sale of controlled substances. The drug dealer deposits the cash in a legitimate bank account. The sales proceeds may be further laundered by investment in a legitimate business enterprise. On the surface, both the cash in the bank account and the cash derived from the business appear perfectly legal. A look behind the scenes reveals that both are tainted due to their source.

Money may be laundered through a variety of transactions. The simplest case involves the deposit of illegitimately obtained funds into a legitimate financial vehicle such as a bank account, cash value life insurance policy, or annuity.

With financial transaction money laundering the prohibited action is conducting or
attempting to conduct a financial transaction, knowing that the money or other property involved represents the proceeds of some form of unlawful activity.

FinCEN is an agency of the Treasury Department. It is charged with oversight and
implementation of the federal anti-money laundering laws. It passes along intelligence to state, federal, and international law enforcement agencies and financial industry regulators to help them in their efforts to combat money laundering.

FINRA Rule 15-c-3-3 - Customer Protection Rule

2008-08-11T17:12:00.000-07:00

FINRA Broker CE Training

IRA Continuing Education - IRA Account CE Course

2008-07-02T11:24:00.000-07:00

Use the following links to online CE Course information for IRA Accounts to complete continuing education training requirement for Series 7, Series 6, Series 24, Insurance license or other.

Sample:

Funding Options for a Trust or Custodial Account
Some of the nonannuity products that are normally used to fund individual retirement accounts through a custodial account include

mutual funds,
certificates of deposit and other traditional savings vehicles,
stocks,
bonds, and
certain gold and silver coins.
As we can see, there are many funding vehicles available to the IRA owner. In fact, it is easier to identify those investments that are not approved as IRA funding vehicles than to specifically list those that are. The savings and investment products which are specifically prohibited as IRA funding vehicles are

life insurance, and
collectibles, such as antiques, artwork, etc.
Understand that the other tax benefits normally associated with certain growth-oriented investments such as stocks and coins are lost when those investments are used to fund an IRA. Specifically, the growth in value of stocks and coins is normally associated with a gain in its value, rather than with dividends or interest. That gain could enjoy capital gains tax rates if the investment were not a part of an IRA. If an individual places IRA funds in investments normally eligible for capital gains treatment, any gains lose their identity as capital gains and are subject to taxation at ordinary income tax rates when distributed from the IRA.

When a trust or custodial account is used rather than an annuity, custodial fees normally must be paid each year or deducted from the account value. If these fees are separately billed by the trust and paid by the IRA owner, they may be claimed as an itemized miscellaneous deduction on the individual’s tax return. Furthermore, they will not be considered an excess contribution or reduce the amount which may be contributed to the IRA. In other words, an IRA owner may make his or her maximum IRA contribution and pay a custodial fee that might be $50 and deduct the entire amount.

This course qualifies for CE course credit in all 50 states.

FINRA License CE Course

Estate Planning CE Credit - Continuing Education

2008-01-20T13:45:00.000-08:00

Estate Planning Advanced

CATEGORY:
Life

LEVEL:
Advanced

COURSE DESCRIPTION:
This course focuses on are the proper methods of holding legal title to property during your life, and passing your estate on to your heirs in a manner and timing of your choosing, all with minimum taxes and intervention by the legal system. It begins with a consideration of the estate planning process and the documents of transfer. The course then addresses the unified transfer tax system and the calculation of an individual’s estate tax liability. Estate planning techniques such as trusts, marital and charitable deduction vehicles, and intra-family business and property transfers are then discussed. The course ends with a consideration of post-mortem tax planning.

LEARNING OBJECTIVES:

Outlines the need for and the elements of the estate planning process.
Establishes estate planning strategies.
Overview of the Federal Gift tax system.
Introduces gross estate and valuation techniques.
Explains the purpose and function of the Federal Estate Tax.
Explain the purpose and function of trusts.
Outlines marital deduction planning.
Outlines charitable deduction planning.
Addresses estate planning issues for business owners.
Outlines post-mortem estate planning.

TOPICS COVERED:

Introduction
LESSON 1: The Estate Planning Process And Documents Of Transfer
LESSON 2 : Unified Transfer Tax System And Generation Skipping Transfer Tax (GSTT)
LESSON 3: Gifts And Federal Gift Taxation
LESSON 4: The Gross Estate And Valuation Techniques
LESSON 5: Calculation Of Federal Estate Tax Liability
LESSON 6: Trusts
LESSON 7: Marital Deduction Planning
LESSON 8: Charitable Deduction Planning
LESSON 9: Intra-Family Business And Property Transfers
LESSON 10 Tax Planning for Estates of Varying Sizes
LESSON 11: Post-Mortem Estate Planning
LESSON 12: Conclusion

FINRA NASD Firm Element CE Online

Annuities CE Training

2008-01-20T13:43:00.000-08:00

COURSE NAME:
Annuities

COURSE DESCRIPTION:

As the Baby Boomer generation reaches retirement age, the issue of how to prepare and safeguard that retirement is becoming an increasingly important topic in the insurance and financial industries. Clients planning for their retirement future often turn to annuities as a source of income and funding. This course explores the function of annuities as investment instruments, the characteristics of fixed and variable annuities, and the benefits and options available with both varieties.

LEARNING OBJECTIVES:
• Define the uses and purpose of an annuity.
• Recognize the investment function of an annuity.
• Discern the difference between an annuity and a retirement plan.
• Understand the differences between fixed and variable annuities, and the characteristics that distinguish them.
• Be familiar with settlement/payout options.
• Identify the benefits associated with annuities.

TOPICS COVERED:

Introduction
LESSON 1: Annuities – Fundamentals
LESSON 2: Fixed Annuities
LESSON 3: Variable Annuities

Firm Element CE Credit

Variable Annuity Plans

Margin CE - Continuing Education Exam

2007-11-17T19:14:00.000-08:00

1. Credit from bank to broker is controlled under:

a. Regulation T
b. Regulation U
c. Regulation X
d. Regulation Z

2. Interest charges on customer debit balances are based on the:

a. Prime Rate
b. Federal Funds Rate
c. Treasury Bill Rate
d. Broker Loan Rate

3. The maximum amount of customer securities that can be rehypothecated by a broker is:

a. 50 % of the debit balance
b. 70 % of the debit balance
c. 100 % of the debit balance
d. 140 % of the debit balance

4. Under Regulation T, an extension for payment may be requested on:

a. Settlement Date
b. Settlement Date + 1
c. Settlement Date + 2
d. Settlement Date + 5

5. If a customer’s account is frozen:

a. no trading is permitted in the account for 30 days
b. no trading is permitted in the account for 90 days
c. purchases require cash in advance for 30 days
d. purchased require cash in advance for 90 days

6. What are initial and maintenance margins for stock positions in a long margin account ?

a. 50 / 50
b. 50 / 25
c. 50 / 30
d. 25 / 30

7. What are initial and maintenance margins for stock positions in a short margin account?

a. 50 / 50
b. 50 / 25
c. 50 / 30
d. 25 / 30

8. A customer buys 100 shares of ABC stock at $50 as an initial transaction in a margin account.
The customer must deposit:

a. $1000
b. $2000
c. $2500
d. $5000

9. A customer sells short 1000 shares of ABC stock at $8, as the initial transaction in a new margin account. The customer must deposit:

a. $2000
b. $2400
c. $4000
d. $5000

10. A customer has $10,000 to invest. What dollar amount of long call options can be purchased
by the customer?

a. $10,000
b. $20,000
c. $100,000
d. $200,000

11. Customer fails to deliver must be bought in:

a. 5 business days after trade date
b. 5 business days after settlement date
c. 10 business days after trade date
d. 10 business days after settlement date

12. All of the following securities are marginable EXCEPT:

a. Listed stocks
b. Over-the-counter NASDAQ stocks
c. U.S. Government bonds
d. New issues

Use the following information to answer the next 3 question:

A customer margin account shows:

100 shares of ABC @ 50
300 shares of DEF @ 80
200 shares of PDQ @ 30

Debit = $6,000
SMA = $11,500

Reg. T = 50 %

13. What is the equity in the account?

a. $35,000
b. $29,000
c. $23,500
d. $17,500

14. How much of other marginable common stocks can be purchased without making a deposit?

a. $6,000
b. $11,500
c. $12,000
d. $23,000

15. What is the minimum maintenance margin requirement?

a. $2,000
b. $8,750
c. $10,500
d. $17,500

16. Which of the following does not affect SMA in a long margin account?

a. purchase of securities
b. sale of securities
c. increase in market value
d. decrease in market value

17. A customer sells short 100 shares of ABC at 15 as an initial transaction in a new margin account. The customer must deposit:

a. $750
b. $1,500
c. $2,000
d. $2,500

18. The formula for equity in a combined margin account is:

a. long market value + short market value - credit balance - debit balance
b. long market value + short market value + credit balance - debit balance
c. long market value - short market value + credit balance - debit balance
d. long market value - short market value - credit balance + debit balance

19. Which of the following will not effect SMA in a short margin account?

a. purchase of securities
b. sale of securities
c. increase in market value
d. decrease in market value

20. A customer buys 5 ABC Jan 50 Calls @ $5 when the market price of ABC is $51. The
customer must deposit:

a. $500
b. $2500
c. $3000
d. $5000

Firm Element CE Training

Suitibility CE Exam 1 Firm Element

2007-11-17T18:46:00.000-08:00

1. Which of the following should occur in order to adhere to fair and reasonable securities sales practices?

I. A rep should have reasonable grounds for believing that an investment recommendation is suitable.
II. A rep should make reasonable efforts to obtain from the customer any information that would be required
to determine suitability.
III. A rep should make suitability inquiries that are consistent with the NASD’s Conduct Rules.
IV. A rep should disclose all material facts concerning the investment recommendation.

A. I, II and III only
B. I and IV only
C. III and IV only
D. I, II, III and IV

2. In order to make a suitable investment recommendation, a rep must inquire as to the customer’s

I. tax status
II. investment experience
III. investment objectives
IV. financial condition

A. I only
B. I, II and IV only
C. III and IV only
D. I, II, III and IV

3. Which of the following characteristics best describes growth?

A. Increase in the value of an investment over time
B. Increase in interest and dividends over time
C. Investments that appreciate tax deferred
D. All of the above

4. Which of the following investments is least appropriate for a customer who is primarily concerned with
liquidity?

A. Preferred stock
B. Municipal bond mutual fund
C. Bank savings account
D. Direct participation program

5. Bondholders face the risk that the value of their bonds may fall as interest rates rise. This is known as

A. credit risk
B. liquidity risk
C. market risk
D. marketability risk

6. Credit risk involves:

A. safety of principal
B. fluctuations in overall interest rates
C. the danger of not being able to sell the investment at a fair market price
D. inflationary risks

7. All of the following types of financial information should be obtained from a customer before opening an
account or transacting business EXCEPT

A. the customer’s investment experience
B. the customer’s net worth
C. the customer’s actual or estimated annual income
D. the customer’s ability to borrow money from interested parties

8. If your customer’s primary investment concern is to guard against inflation, the best mutual fund for him would
be a:

A. bond fund
B. growth fund
C. money-market fund
D. Mutual funds do not offer inflation protection

9. In general, the greater the variation in an investment’s potential gains or losses, the

A. smaller the investment’s return
B. greater the investment’s return
C. smaller the investment’s risk
D. greater the investment’s risk

10. An increase in the value of an asset due to economic and other business conditions is called

A. interest
B. dividends
C. appreciation
D. depreciation

11. An elderly widow with no other income wishes to invest the proceeds from her husband’s life insurance.
Which of the following would be a suitable recommendation?

A. Call options
B. Cattle futures
C. Oil and gas exploration program that you know is going to strike
D. Blue chip income stocks

12. Registered rep Eve Grizzly always inquires into her clients’ investment objectives, financial situations and
needs. According to securities industry rules, Eve is:

A. obtaining the information required to fulfill her professional obligation regarding suitability
B. determining whether she has any inherent conflicts of interest with her clients
C. violation her ethical obligation regarding confidentially of client information
D. giving herself an unethical advantage regarding how much the client can afford to spend on commissions

13. Bonds with long maturities offer

I. stability of income
II. stability of market value
III. fluctuation of income
IV. fluctuation of market value

A. I and II
B. I and IV
C. II and III
D. III and IV

14. The NASD requires that investment recommendations must include the disclosure of

A. the risks related to the investment
B. the sales charges related to the transaction
C. all material facts related to the investment
D. all of the above

15. In order to fit the NASD’s requirement for a suitable recommendation, a product must be matched with the

I. customer’s financial means
II. rep’s commission structure
III. customer’s investment objectives
IV. rep’s risk tolerance

A. I only
B. I and III only
C. II and IV only
D. I, II, III and IV

Ethics Securites Continuing Education CE

2007-11-17T18:43:00.000-08:00

The securities industry is a highly competitive one. For a rep, there exists ample opportunity to conduct business inappropriately at the expense of a competitor. Misrepresentation or defamation of a competitor gives the entire industry a bad image.

Defamation is any false of malicious communication-written or oral-that injures another’s reputation or character.
Both individuals and companies can be defamed. Unethical registered reps practice defamation by spreading rumors or falsehoods about the character of a competing rep or another firm.

As a duty to the rep’s firm and to the industry itself, a rep must resist this temptation. Ethics requires a rep to acknowledge the worth of other reps and their products and compete only on the basis of the value of the products and services that she can provide.

Ethics does not have to be incompatible with capitalism. Profit is not a dirty word. In the long run, good ethics is good business. Hard but fair competition cannot help but benefit the public.

Ethics usually precedes the law. While many ethical standards of conduct have been codified, many have not. Something can be legal but not ethical. For example, it is legal to encourage a customer to invest more than she can afford to, though it is not ethical. Ethics goes beyond the letter of the law and entails not only what a person “must do” but what a person “should do.”

However, it should be noted that the law does provide a very specific ethical direction for everyone through civil and criminal statutes. Under the law, ethical conduct is generally defined as that which a reasonable person is expected to do under the circumstances. Also defined in the law are illegal and improper conduct and the penalties for such conduct.

A registered representative’s primary ethical responsibilities are the securities industry regulators, the general public, the rep’s firm and the rep’s customers.

The responsibility to regulate the securities industry is shared by the federal and state governments and the self-regulatory organizations. However, though government regulations and industry regulations may differ, the underlying standard of ethical conduct is the same. The register rep must comply with the intent of as well as the letter of the law.

The registered rep has more control over the public’s attitude toward securities than do sales representatives for most other consumer products. This is because the rep initiates contact with a prospective customer, determines the suitability of investing, recommends certain products or strategies, makes the sales presentation and finally develops a long-term relationship with the customer.

Because this special relationship involves a great deal of contact between the customer and the rep (and because the public generally understands little about the securities markets), public perceptions of the industry itself are based on how will-or how poorly- a rep does his job. Thus, the registered rep has two main ethical responsibilities to the public:

to inform the public about investing with the highest level of professional integrity; and
to strive for an equally high level of professionalism in all public contacts in order to maintain the strong positive image of the securities industry.

Serving on industry committees, assisting with public education and educating yourself are all part of service to the industry; other examples include representing the firm and the industry in community activities and attending industry conferences and seminars.

In carrying out her duties, the registered rep is the direct representative of the broker-dealer. Her day-to day activities directly reflect on the firm’s image within the community. Should the rep behave unethically, everyone in that community is given reason to believe that the firm is also unethical.

Even a well-intentioned employee of a broker-dealer or investment adviser can sometimes run afoul of the regulations. For example, a customer might suggest that an employee deliver a security in person, saving the firm the time and expense of registration and registered-mail delivery. But in most firms, delivering securities in this fashion is strictly against policy, and any person doing so could be subject to dismissal.

Shortcuts are rarely a good idea-policies and regulations protect the employee, the firm and the customer, Included in industry newsletters are numerous accounts of securities industry professionals who have been barred from the business and fined large sums of money. Some of them committed legal violations and others used poor judgment. As a result of their actions, these reps were forced to give up their plans for success in the securities industry and to look in other fields to begin their careers over again.

The registered rep can meet his ethical responsibilities to a customer by filling the customer’s needs and providing quality service. Service is a primary function of the securities industry. The way that service is provided often
determines the rep’s future because customers are a good source for future sales and references. Throughout this course, we will discuss ways in which reps can serve their customers while maintaining ethical standards.

An ethical customer makes full and honest disclosure to the registered representative. This information is all the representative or investment adviser has on which to base recommendations.
Customer information also may be important in gaining permission to engage in specific kinds or sizes of trades. A customer who fails to disclose relevant information could jeopardize the career of the representative or investment adviser.

Failure on the part of a customer to provide information is often the first signal to a compliance department of potential trouble.

Practices that tend to give certain investors and unfair advantage over the general public ( a prime example being insider trading) are prohibited by regulations. It is the responsibility of the individual investor to abide by these regulations.

A registered rep should be aware that an unscrupulous customer may someday try to “trick” him into violating the laws, regulations or rules for the customer’s illicit purposes. New brokers are often the most susceptible to such customer schemes.

Broker-dealers protect their customers through self-regulation. A brokerage firm has the ability to establish policies that maintain a balance of interest among the customer, the registered rep and the firm. For this three-sided relationship to endure, each party must treat the others with respect and professionalism.

Registered reps feel that many ethical challenges confronting them stem from two sources: competition and the stress of performance quotas. Reps notice that the intense competition within the securities industry forces management to look at the bottom line, which creates a conflict with business ethics. The same conflict comes from the competition reps face individually. Reps may feel that the practice of measuring performance on the basis of end results poses a challenge to ethics because the result is considered more important than the means.

One solution to the ethical conflicts presented by the business environment is to remove the pressure to compromise a rep’s own values and standards. The firm can alleviate this pressure by:

emphasizing ethics in business operations;

providing clear communication of appropriate ethical behavior.;

allowing a rep to go to his boss or beyond his boss for ethical advice; and

distributing a code of ethics to all employees.

To address potential conflicts between ethical standards and the firm’s bottom line, broker-dealers might establish rules similar to the following:

Because suitability should drive sales, compensation programs for selling securities must not be structured to encourage unsuitable recommendations.

Increased incentives paid in sales contests or in the introduction of new products might result in a conflict of interest should be controlled.

Supervision of the sales program should be increased in instances where payout to reps is weighted toward proprietary products.

Paying excessive incentives, bonuses and commission rates to reps for accepting employment with the firm should be prevented.

Ethics CE Part 1 Securities CE

2007-11-17T18:36:00.000-08:00

The securities industry sets and enforces high ethical standards. The government regulates the industry. The self-regulatory organizations police the firms. The firm’s compliance and legal department police the employees. All of these regulatory bodies have one main function: to ensure the public is dealt with fairly.

Securities industry regulators are very diligent in detecting and preventing unethical behavior. Investigators
regularly examine activities at all levels-from large firms, to investment advisers, to registered reps, to individual
investors. Even the most junior of employees is expected to maintain high standards of business ethics and commercial honor in dealing with customers, the public, the firm and the industry.

To encourage each firm to do its part in preventing unethical behavior, regulators are placing an ever-greater emphasis on the firm’s responsibility to hire only reps who play by the rules.

At some time in your life, you’ve been exposed to the golden rule that states, “Do unto others as you would have them do unto you”. Whether taught by a parent, a teacher or a religious leader, this golden rule not only promises spiritual satisfaction and fulfillment, but it also can serve as a practical guide for registered rep’s daily life.

To a certain extent, ethics is a set of instructions on how to deal daily with a group Ana community. These instructions revolve around a single theme: social behavior that favors the group over the individual.
Antisocial behavior usually stems from individual selfishness and greed-characteristics that are against the common good and disruptive to overall balance and harmony, Because ethical behavior on the part of the individual resulted in group harmony, communities turned to such ethics as the basis for common law, which in turn became the basis for our own civil and criminal codes of conduct.

Ethical business practices can help foster satisfied customers, as well as a stable economy. In this context, ethics is about social justice-making sure that people receive benefits from every decision made.
Unfortunately, our society isn’t always critical of wrongdoing. For example, many people are impressed with the wealth accumulated by some individuals and ignore the means by which it was gained.

The tendency to emphasize personal financial gain is a common way many businesses-including those in the securities industry-motive their employees. Financial gain is often held out as the primary measure of success. This is not to say that pursuit of financial gain is wrong; however, consider how incentives such as “ Top Producer of
the Month” rosters have the tendency to spotlight financial achievement while ignoring professionalism and public service. What about a firm atmosphere that stresses results by any means? Shouldn’t those who have achieved ethical success-those who have best served the needs of their firms and the public-be honored too?

If you concentrate too much on the financial rewards of your job, you might look at a customer and think, “What can I get from him?” instead of, “What can I do for him?” Your relationship with the customer will suffer if you approach him with the wrong attitude.

Certainly, registered reps should expect to be adequately rewarded for success, and production figures are vital to the well-being of any broker-dealer. However, no less important is meeting the needs of customers and the public in a proper and ethical manner. Self-interest is fine, but not when maintained at any cost-the cost of your self-respect and the cost of others.