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


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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. 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 >>
  3. Your firm is a registered investment advisor that specializes in investment management ...

    The correct answer is b: As a professional, you must be able to recognize when clients make requests for services that are ... Read Answer >>
  4. What is the difference between a buy-side analyst and a sell-side analyst?

    The main difference between these two types of analysts is the type of firm that employs them and the people to whom they ... Read Answer >>
  5. Does agency theory apply to brokers and clients?

    Learn how the existence of incentives that encourage moral hazard impacts broker-client relationships. Understand how agency ... Read Answer >>
  6. All of the following are unethical behaviors prohibited under the Uniform Securities ...

    The correct answer is b. All registrants must follow the client’s instructions, including executing a trade that the registrant ... Read Answer >>
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