Handling Client Funds - Introduction

Within this section we will examine how IAs with custody or discretionary authority over client accounts must uphold strict standards. In addition, we'll learn why it is important for an IA to provide suitable recommendations to clients. Custody


Related Articles
  1. Professionals

    Prudent Investor Standards

    FINRA/NASAA Series 66 - Prudent Investor Standards. This section explains the prudent investor standards.
  2. Professionals

    Prudent Investor Standards

    FINRA/NASAA Series 65 - Prudent Investor Standards. In this section the prudent person rule and sample question.
  3. Professionals

    Discretion

    FINRA/NASAA Series 66 - Discretion. This sections explains the requirement of discretionary power from client.
  4. Professionals

    Discretion

    FINRA/NASAA Series 65 - Discretion. In this section discretionary powers of IAs.
  5. Professionals

    Other Prohibited Behaviors

    FINRA/NASAA Series 65 - Other Prohibited Behaviors. In this section unethical actions, conflicts of interest, agency cross transactions and insider trading.
  6. Professionals

    Custody

    FINRA/NASAA Series 65 - Custody. In this section investment adviser custody requirements.
  7. Professionals

    Introduction

    FINRA/NASAA Series 66 - Handling Client Funds. This section explains custody and investment advisors ability to withdraw money from client's account.
  8. Professionals

    Other Prohibited Behaviors

    FINRA/NASAA Series 66 - Other Prohibited Behaviors. This section describes other prohibited behaviour such as misrepresentations, third-party research, improper facts, misleading statements and ...
  9. Professionals

    Conflicts of Interest

    FINRA/NASAA Series 65 - Conflicts of Interest. In this section curning, client loans and exceptions to client loans.
  10. Professionals

    Registering As An Investment Advisor

    Series 7 Online Study Guide Section 15 Rules and Regulations. In this section, how to register as an investment advisor, disclosure requirements, and more.
RELATED TERMS
  1. International Accounting Standards ...

    An older set of standards stating how particular types of transactions ...
  2. Discretionary Account

    An account that allows a broker to buy and sell securities without ...
  3. Discretionary Investment Management

    A form of investment management in which buy and sell decisions ...
  4. Account Executive

    This term refers a person who has primary responsibility for ...
  5. Blanket Recommendation

    A situation in which a financial professional or institution ...
  6. Full Trading Authorization

    A level of trading authorization that grants an agent or broker the ...
RELATED FAQS
  1. Under what circumstances can an IA choose to sell a security for a client without ...

    A. When the transaction is less than $5,000B. When the IA decides only how many shares to sellC. When the client tells the ... Read Answer >>
  2. Type Of Return

    A client asks an IA to calculate what rate of return must be earned to grow $10,000 to $25,000 in five years. The rate of ... Read Answer >>
  3. What is the difference between IAS and GAAP?

    To answer this question, we must first define what IAS and GAAP are, in order to get a better grasp of the function they ... Read Answer >>
  4. An advisor has all client advisory fees automatically deducted from their accounts ...

    The correct answer is c) An advisor is not deemed to have custody of client funds when debiting management fees from the ... Read Answer >>
  5. Under the Uniform Securities Act, client information may not be disclosed to a third ...

    The correct answer is c. No authorization is needed from the client’s wife since it is a joint account. Also none is needed ... Read Answer >>
  6. How do I know how much of my income should be discretionary?

    Understand the difference between discretionary income and disposable income. Learn how much of a person's income should ... Read Answer >>
Hot Definitions
  1. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  2. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  3. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  6. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
Trading Center