Please enable JavaScript.
Coggle requires JavaScript to display documents.
Unit 1: Definitions Under the Uniform Securities Act - Coggle Diagram
Unit 1: Definitions Under the Uniform Securities Act
The Uniform Securities Act of 1956 (USA)
Administrator
Cease and Desist Order
Stop Order
Summary Order(Acting Summarily)
Final Orders
Blue-Sky Laws
Person
Broker-dealer
Credit Unions :check:
NCUA (National Credit Union Administration) :check:
NCUSIF (National Credit Union Share Insurance Fund)
Deposits insured
Non-profit, member owned
Federal or State Covered
Suitability standard:
BD does not have to place the client's interest ahead of the firm's :check:
Savings Institutions / S&Ls :check:
Depository institutions (accept deposits, make loans, specializes in residential mortgage
Excluded from BD
Regulated by Banking Regulators
: Federally chartered S&Ls // State-chartered S&Ls
federal banking regulator -> OCC (Office of the Comptroller of the Currency)
considered “institutional investors”
Agent :check:
Agency Trade :check:
RR facilitates the trade and must find the other side of the trade in the market // Not own inventory // Commission // represents the client // acts as Broker
Investment Adviser
Federal covered adviser
Three ways to become a Federal Covered Adviser (FCA)
1️⃣ AUM of $110 million or more → MUST register with SEC
2️⃣ AUM between $100–110M → MAY register with SEC (optional)
3️⃣ Advises a registered investment company (mutual fund) → MUST register with SEC regardless of AUM
Regulator: SEC
State
Federal preemption rule
: FCA cannot register at the state level
BUT may require notice filing, fees, Registration of IARs, Anti-fraud jurisdiction remains
Fiduciary Duty
Written advisory contract
(client and IA)
IA signs, IAR delivers service
Investment Adviser Representative
Associated Person
Issuer, Nonissuer
Security
YES
NO
Insurance products:
Fixed annuities
Transaction
Private placement
SEC def (Federal law)
: Allows more investors
:star:
USA def (state law):
becomes exempt once 3 criteria are met: (1) Sales to no more than 10 retail (non-institutional) clients in 12 months // (2) NO commissions can be paid for soliciting those retail buyers // (3) Buyers must purchase for investment only (no quick resale)
Form ADV, Form BD, Form U4
Guaranteed security
Offer/Offer To Sell
Sale/Sell
Discretion, Fiduciary
Fraud
Statutory Disqualification
Stock Exchange, Over-The-Counter (otc) Market
SRO
Solicitor
De minimis
Accredited Investor
Qualified client, Qualified Purchaser
Registrant
Institution
National Securities Markets Improvement Act of 1996 (NSMIA)
Surety Bond
Wrap Fee Program
BD + IA
Wrap fee program
charge one bundle fee for BD+IA services
IA + IAR
IARD (Investment Adviser Registration Depository)