Category: Series 65

Exam Alert: NYSE Euronext and Deutsche Boerse cancel merger after EU ruling

On February 1, 2012, the European Commission blocked the merger of NYSE Euronext and Deutsche Boerse, two major exchanges, on the grounds that the combined entity would have a near-monopoly on the European derivatives market. On February 2, 2012, NYSE Euronext announced that, in light of the ruling, both companies have agreed to cancel the merger. Continue reading

On February 1, 2012, the European Commission blocked the merger of NYSE Euronext and Deutsche Boerse, two major exchanges, on the grounds that the combined entity would have a near-monopoly on the European derivatives market.  On February 2, 2012, NYSE Euronext announced that, in light of the ruling, both companies have agreed to cancel the merger.

Sources: “EU blocks Deutsche Boerse/NYSE merger, cites near-monopoly”, “NYSE EURONEXT AND DEUTSCHE BOERSE TERMINATE BUSINESS COMBINATION AGREEMENT”

Prior related alert: “Exam Alert: NYSE Euronext and Deutsche Boerse announce merger”

This alert applies to the Series 79, Series 62, Series 24, Series 99, Series 7, Series 65, and Series 66.

Exam Alert: FINRA recommends heightened supervision for complex products

On January 17, 2012, FINRA highlighted the need for firms to have adequate supervisory and compliance programs in place in order for registered representatives to recommend complex products. FINRA identified several characteristics that may cause a product to be considered “complex,” such as embedded derivatives or contingencies. The notice states that agents should determine suitability, consider the customer’s financial sophistication, discuss the products with the customer, and consider alternative investments that could meet the customer’s goals. The firm should also review the performance of the products and train the agents about the products. Continue reading

On January 17, 2012, FINRA highlighted the need for firms to have adequate supervisory and compliance programs in place in order for registered representatives to recommend complex products.  FINRA identified several characteristics that may cause a product to be considered “complex,” such as embedded derivatives or contingencies.  The notice states that agents should determine suitability, consider the customer’s financial sophistication, discuss the products with the customer, and consider alternative investments that could meet the customer’s goals.  The firm should also review the performance of the products and train the agents about the products.

Source: FINRA Regulatory Notice 12-03

This alert applies to the Series 6, Series 7, Series 24, Series 26, Series 55, Series 62, Series 79, Series 82, Series 99, Series 63, Series 65, and Series 66.

Exam Alert: SEC staff provides compliance suggestions for IAs using social media

On January 4, 2012, the SEC staff provided suggestions for investment advisers using social media to help them comply with communication and recordkeeping rules. Of particular note, the SEC staff stated that the client use of the “like” button could count as a testimonial under the Investment Advisers Act. Continue reading

On January 4, 2012, the SEC staff provided suggestions for investment advisers using social media to help them comply with communication and recordkeeping rules.  Of particular note, the SEC staff stated that the client use of the “like” button could count as a testimonial under the Investment Advisers Act.  Investment adviser advertisements may not include testimonials.  Note that written communications addressed to more than one person are considered advertisements.

Source: National Examination Risk Alert: Investment Adviser Use of Social Media

This alert applies to the Series 65, Series 66, Series 24, Series 55, Series 62, and Series 82.

Exam Alert: SEC raises dollar thresholds for “qualified clients”

Effective September 19, 2011, the SEC has raised the thresholds an investor must meet to be considered a qualified client on the basis of assets under management or net worth. The thresholds are now $1 million in assets under management (previously $750,000) and $2 million in net worth (previously $1.5 million). Continue reading

Effective September 19, 2011, the SEC has raised the thresholds an investor must meet to be considered a qualified client on the basis of assets under management or net worth.  The thresholds are now $1 million in assets under management (previously $750,000) and $2 million in net worth (previously $1.5 million).  A qualified client may compensate an investment adviser based on performance.

Source: SEC Release 3236

Prior related alert: SEC proposes rule to change standards for “qualified clients”

This alert is relevant to the Series 63, Series 65, Series 66, and Series 24.

Exam Alert: SEC requires private fund advisers to file Form PF

A new SEC rule requires investment advisers with at least $150 million in private fund assets under management to periodically file Form PF. Large private fund advisers are required to file more frequently and to provide more detailed information than small private fund advisers. Continue reading

A new SEC rule requires investment advisers with at least $150 million in private fund assets under management to periodically file Form PF.  Large private fund advisers are required to file more frequently and to provide more detailed information than small private fund advisers.  Most private advisers must begin filing December 15, 2012.  Private advisers with $5 billion or more in private fund assets must begin filing June 15, 2012.

Source: SEC Release 2011-226

This alert applies to the Series 65, 66, 24, 62, and 82.

Exam Alert: FINRA provides guidance on TIPS fund advertising

On October 27, 2011, FINRA provided guidance on its rules that govern communications with the public regarding Treasury Inflation-Protected Securities (TIPS) funds. Specifically, if a TIPS fund’s current yield is adjusted monthly based on changes in the inflation rate, communication must explain that these changes can cause the yield to vary greatly from month to month. If an advertisement includes an unusually high current yield, “the material must disclose that the yield is attributable to the rise in the inflation rate, which might not be repeated.” Continue reading

On October 27, 2011, FINRA provided guidance on its rules that govern communications with the public regarding Treasury Inflation-Protected Securities (TIPS) funds.  Specifically, if a TIPS fund’s current yield is adjusted monthly based on changes in the inflation rate, communication must explain that these changes can cause the yield to vary greatly from month to month.  If an advertisement includes an unusually high current yield, “the material must disclose that the yield is attributable to the rise in the inflation rate, which might not be repeated.”

Source: FINRA Regulatory Notice 11-49

This alert is relevant to the Series 6, 7, 24, 26, 62, and 82.

Exam Alert: SEC gives guidance on cyber attack threat disclosure

On October 13, 2011, the Securities and Exchange Commission issued new guidelines that clarify the application of existing disclosure rules. Specifically, the SEC has identified cyber attack incidents, along with the risk of cyber attacks, as material information that must be disclosed to investors. Continue reading

On October 13, 2011, the Securities and Exchange Commission issued new guidelines that clarify the application of existing disclosure rules.  Specifically, the SEC has identified cyber attack incidents, along with the risk of cyber attacks, as material information that must be disclosed to investors.

Source: CF Disclosure Guidance: Topic No. 2

Further reading: “SEC tells companies to disclose cyber attacks”

This alert applies to the Series 24, 26, 55, 6, 62, 63, 65, 66, 79, 82, 99, and 7.

Exam Alert: Private fund advisers may be required to file with FINRA

The SEC and the CTFC have together proposed a rule that would require private fund advisers to file Form PF periodically. On October 6, 2011, the SEC announced that if Form PF is adopted, private advisers will file the form with FINRA’s IARD. Continue reading

The SEC and the CFTC have together proposed a rule that would require private fund advisers to file Form PF periodically.  On October 6, 2011, the SEC announced that if Form PF is adopted, private advisers will file the form with FINRA’s IARD.  The filing fees for Form PF would be $150 for quarterly filings and $150 for annual filings.

Source: Federal Register Volume 76, Number 194

This alert applies to the Series 65, Series 66, Series 24, Series 62, and Series 82.

Android Apps have arrived at Solomon Exam Prep

If you’re looking to study for a FINRA or NASAA licensing exam on the go and use an Android phone, you’re in luck. Solomon Exam Prep has arrived Continue reading

If you’re looking to study for a FINRA or NASAA licensing exam on the go and use an Android phone, you’re in luck. Solomon Exam Prep has arrived in the Android Market! Solomon Exam Prep mobile apps offer hundreds of practice exam questions designed to help you study for the Series 7, Series 6, Series 63, Series 65, Series 66, Series 62 and Series 79 exams at your convenience.

All Solomon Exam Prep apps retail for $9.99 aside from the Series 62 app, which is $18.99. If you’re studying for the Series 3, 4, 7 or 24 exams, you can also check out our Options app for those tricky options questions.  Curious about whether our apps are right for you? Lite versions are available to give you a free preview.

Whether you’re looking for a supplement to your Solomon Exam Prep classes and workbooks or you just want to do some quick review on your own, our Android apps will allow you to study for the following exams anywhere you have your phone:

  • FINRA Series 7 General Securities Representative exam
  • FINRA Series 6 Investment Company Products/Variable Contracts Limited Representative exam
  • FINRA Series 62 Corporate Securities Limited Representative exam
  • NASAA Series 63 Uniform Securities Agent State Law exam
  • NASAA Series 65 Uniform Investment Adviser Law exam
  • NASAA Series 66 Uniform Combined State Law exam
  • FINRA Series 79 Limited Representative Investment Banking exam (lite only)
  • An Options-only app great for specialized study for the Series 3, 4, 7 and 24 exams

Download Our Apps at: https://play.google.com/store/apps/developer?id=Solomon+Exam+Prep

For more information about Solomon Exam Prep, go to www.SolomonExamPrep.Com.

Solomon Exam Prep attending WIFS National Conference in October

This year, Solomon Exam Prep will feature a booth at the Women in Insurance & Financial Services (WIFS) National Conference in Portland, OR on October 20-22. Continue reading

This year, Solomon Exam Prep will feature a booth at the Women in Insurance & Financial Services (WIFS) National Conference in Portland, OR on October 20-22. WIFS is a great organization dedicated to encouraging women in the financial services sector and helping them develop their talents and careers. Stop by the Solomon Exam Prep booth in the exhibit hall or meet with Professor Karen Solomon at 1 pm on Thursday the 20th for her one hour session on the NASAA Series 65 exam.

To find out more information about the WIFS National Conference this year, please click here. Learn more about WIFS as an organization by checking out their website: www.wifsnational.org.