New Year, New Pass Rates

One way we help companies raise their pass rates is through a summer associate program. Solomon uses a multimedia approach that allows associates to study from anywhere, and does not require a physical location. With a combination of a live, instructor-led, online courses and our online study materials, we have helped companies improve their pass rates. Continue reading

How to Achieve Higher Associate Pass Rates in 2014

As the New Year kicks-off, we tend to reflect on the past year and make resolutions both in our personal and professional lives. One of those resolutions, for compliance officers and advisors alike, is to pass their financial exams and improve their overall pass rates. While this may seem like a daunting task to undertake, this is something that Solomon Exam Prep has been doing for years and can help you to accomplish.

We take pride in the quality of the products we offer and in our student’s success. We are only a reflection of our student’s achievements, and we strive to help them realize and achieve those. One way we help companies raise their pass rates is through a summer associate program. Solomon uses a multimedia approach that allows associates to study from anywhere, and does not require a physical location. With a combination of a live, instructor-led, online courses and our online study materials, we have helped companies improve their pass rates.

Last summer, we led a class of 10 students for Harris Williams, all needing to take the Series 79 and Series 63. We are happy to announce a 100% success rate with these students.

“Solomon Exam Prep did a really nice job preparing our new Associates for their Series exams. Everyone was able to pass their Series 79 Exam on their first attempt. Given the difficulty our employees have finding time to reschedule exams, we are thrilled with the results.” –Sara Walker, Harris Williams

It is accomplishments like these that keep our business growing, and we want to help you do the same. Please take a look at our Associate Training Programs, and let us help you raise your pass rates in 2014.

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Exam alert: SEC issues risk alert on “Pay-to-Play” practices

On August 31, 2012, the SEC issued a risk alert regarding compliance with MSRB rules. Specifically, the alert looks at failures to comply with Rule G-37, which prohibits a firm from doing business with a municipal issuer if a municipal finance professional of the firm donated money to an official of that issuer within the past two years. Continue reading

On August 31, 2012, the SEC issued a risk alert regarding compliance with MSRB rules.  Specifically, the alert looks at failures to comply with Rule G-37, which prohibits a firm from doing business with a municipal issuer if a municipal finance professional of the firm donated money to an official of that issuer within the past two years.  The alert expresses concerns about violations of the ban, as well as inadequate supervision, failure to file forms, and recordkeeping violations.

The alert identifies good practices implemented by brokers to ensure compliance with the rule.  These practices include training programs for municipal finance professionals, self-certification of compliance with the rule, surveillance of unreported political contributions, and restriction on political contributions (when permitted by state or local law).

Source: SEC Issues Risk Alert on “Pay-to-Play” Prohibitions Under MSRB Rules (SEC Release 2012-173)

This alert applies to the Series 24, Series 7, and Series 99.

Exam Alert: SEC releases risk alert on unauthorized trading

On February 27, 2012, the SEC released a risk alert providing suggestions for techniques and controls a firm may use to help avoid conducting unauthorized trades. The alert has a large focus on supervisory procedures, but also addresses other ways in which firms can make it harder for employees to engage in unauthorized trading. The alert identifies alternative methods to more readily detect unusual trading activity and stresses the importance of a culture of openness and compliance. Continue reading

On February 27, 2012, the SEC released a risk alert providing suggestions for techniques and controls a firm may use to help avoid conducting unauthorized trades.  The alert has a large focus on supervisory procedures, but also addresses other ways in which firms can make it harder for employees to engage in unauthorized trading.  The alert identifies alternative methods to more readily detect unusual trading activity and stresses the importance of a culture of openness and compliance.

 

Suggestions for supervisory procedures include:

-Have more than one chain of control be responsible for monitoring the integrity of the business, i.e. don’t have all your compliance personnel report to the same person.

-Managers and supervisors should understand any complex products and strategies being employed by traders.

-Supervisors should engage in discussions with traders and portfolio managers and address positions that are unusual (given the strategies and/or client objectives involved).

-Make sure the payment structure for traders and supervisors encourages responsible risk-taking.

-Try to avoid having one person or desk fulfill multiple roles.

-Have an “open-door” policy that encourages traders to report unexpected losses promptly.

-Limit trader access to their appropriate portfolios – don’t let them keep access to ones that they are no longer authorized to trade in.

-Consider additional controls (several are listed in the alert).

 

Other suggestions include:

-When an employee transfers into the trading department, remove any prior system access he or she had.

-Have controls in place to confirm extended settlement trades and rollovers.

-Review delays and discrepancies in the customer trade confirmation process to check for unauthorized trading.

-Require mandatory vacations for traders with no remote access to accounts, then assign their portfolio(s) to a supervisor or experienced trader for the duration.  Use this time to check for unusual activity.

-Have the audit and compliance departments review trading strategies, business performance, and risk profile.

-If the firm has multiple recordkeeping systems, try to integrate them.

-Test the controls put in place to discourage unauthorized trading.

-Maintain a corporate culture of honesty, integrity, accountability, and responsible risk-taking.

 

Source: SEC Release 2012-33

This exam alert applies to the Series 24, Series 26, Series 6, Series 7, Series 62, Series 79, Series 82, and Series 99.