Description
Wiley FINRA Series 26 Exam Review 2017
The Investment Company and Variable Contracts Products Principal Examination
Language: English
Subject for Wiley FINRA Series 26 Exam Review 2017 :
348 p. · 21.5x27.7 cm · Paperback
Description
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The go–to guide to acing the Series 26 Exam!
Passing the The Investment Company and Variable Contracts Products Principal Exam (Series 26) qualifies an individual to operate as a principal responsible for supervising and managing a firm and its agents conducting business in open–end mutual funds, variable annuities, and life insurance. The exam covers hiring and qualification, training of representatives, supervision, sales practices, and business processing and recordkeeping rules. An individual must have passed the Series 6 or Series 7 exam prior to taking the Series 26.
Created by the experts at The Securities Institute of America, Inc., Wiley Series 26 Exam Review 2017 arms you with everything you need to pass this long 110–question multiple–choice test. Designed to help you build and fine–tune your knowledge of all areas covered in the exam and to guarantee that you′re prepared mentally and strategically to take the test, it provides:
- Dozens of examples
- Assorted practice questions for each subject area covered in the exam
- Priceless test–taking tips and strategies
- Helpful hints on how to study for the test, manage stress, and stay focused
Wiley Series 26 Exam Review 2017 is your ticket to passing the Series 26 test on the first try with flying colors!
Visit for more information.
The Securities Institute of America, Inc. helps thousands of securities and insurance professionals build successful careers in the financial services industry every year. Our securities training options include:
- Onsite classes
- Private tutoring
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As a result, you can choose a securities training solution that matches your skill level, learning style, and schedule. Regardless of the format you choose, you can be sure that our securities training courses are relevant, tested, and designed to help you succeed. It is the experience of our instructors and the quality of our materials that make our courses requested by name at some of the largest financial services firms in the world.
To contact The Securities Institute of America, visit us on the web at or call 877–218–1776.
About This Book xv
About the Test Bank xvii
About the Securities Institute of America xix
Chapter 1 Brokerage Office Procedures 1
Hiring New Employees 1
Resignation of a Registered Representative 3
Registration Exemptions 4
Persons Ineligible to Register 4
Disciplinary Actions against a Registered Representative 5
Termination for Cause 6
Outside Employment 7
Private Securities Transactions 7
Gift Rule 7
Sharing in a Customer s Account 8
Borrowing and Lending Money 9
Order Tickets 9
Executing an Order 9
Becoming a Stockholder 11
Close Outs 15
Dividend Distribution 21
Pretest 25
Chapter 2 Record Keeping, Financial Requirements, and Reporting 29
Types of Records 29
Storage Requirements 31
Financial Requirements 35
Pretest 49
Chapter 3 Recommendations to Customers 55
General Guidelines 55
Suitability Standards 56
Mutual Fund Suitability 57
Exchange–Traded Funds (ETFs) 61
Periodic Payment Plans 63
Mutual Fund Current Yield 63
Suitability 63
Fair Dealings with Customers 63
Recommendations to an Institutional Customer 67
Short Sales in Connection with Recommendations 68
Issuing Research Reports 68
Regulation FD (Fair Disclosure) 71
Recommendations through Social Media 71
Pretest 75
Chapter 4 General Supervision 79
The Role of the Principal 79
Supervisor Qualifications and Prerequisites 80
Continuing Education 81
Tape Recording Employees 83
Heightened Supervisory Requirements 83
Information Obtained from an Issuer 84
Customer Complaints 84
Investor Information 85
Member Offices 85
Currency Transactions 88
The Patriot Act 88
Identity Theft 90
Pretest 91
Chapter 5 Customer Accounts 95
New Accounts 95
Holding Securities 97
The Depository Trust Company (DTC) 98
Mailing Instructions 99
Types of Account Ownership 99
Trading Authorization 101
Accounts for Employees of Other Broker Dealers 106
Numbered Accounts 106
Prime Brokerage Accounts 107
Account Transfer 107
Margin Accounts 109
Day Trading Accounts 110
Commingling Customers Pledged Securities 111
Wrap Accounts 111
Regulation S–P 111
Pretest 113
Chapter 6 Investment Companies 117
Investment Company Philosophy 117
Types of Investment Companies 118
Investment Company Registration 121
Investment Company Components 123
Mutual Fund Distribution 125
Mutual Fund Prospectus 126
Anti–Reciprocal Rule 129
Valuing Mutual Fund Shares 129
Sales Charges 131
Taxation of Mutual Funds 138
Voting Rights 143
Yields 143
Portfolio Turnover 144
Purchasing Mutual Fund Shares 144
Withdrawal Plans 147
Recommending Mutual Funds 148
Structured Retail Products/SRPs 149
Pretest 151
Chapter 7 Variable Annuities, Life Insurance, and Retirement Plans 155
Annuities 155
Life Insurance 165
Health Savings Accounts 171
Retirement Plans 172
Death of an IRA Owner 177
ERISA 404C Safe Harbor 185
Department of Labor Fiduciary Rules 185
Pretest 187
Chapter 8 Securities Industry Rules and Regulations 191
Issuing Securities 191
The Securities Exchange Act of 1934 194
The National Association of Securities Dealers (NASD) 197
Becoming a Member of FINRA 199
Foreign Broker Dealers 201
Compensation Paid to Unregistered Persons 201
Registration of Agents/Associated Persons 202
Retiring Representatives/Continuing Commissions 203
State Registration 203
Communications with the Public 203
Securities Investor Protection Corporation Act of 1970 (SIPC) 209
The Securities Acts Amendments of 1975 211
The Insider Trading & Securities Fraud Enforcement Act of 1988 211
Telemarketing Rules 212
The Penny Stock Cold Call Rule 213
Violations and Complaints 214
Political Contributions 218
Investment Adviser Registration 219
Investment Adviser Representatives 221
Investment Adviser Advertising and Sales Literature 222
Investment Adviser Brochure Delivery 223
Soft Dollars 223
Broker Dealers on the Premises of Other Financial Institutions 225
The Uniform Securities Act 226
Sarbanes–Oxley Act 226
SEC Regulation S–K 228
SEC Regulation M–A 229
The Hart–Scott–Rodino Act 230
FINRA Rule 5150 (Fairness Opinion) 231
SEC Regulation S–X 231
Pretest 233
Answer Keys 237
Glossary of Exam Terms 245
Index 311
