Compliance for the Securities Industry - Evening

This course provides a thorough examination of the regulatory bodies and regulations under which the securities industry operates in the United States. The structure and function of the legal and compliance department of a broker/dealer is examined in light of this overall regulatory environment.

11-Sep-2008 -- 20-Nov-2008New YorkUSD$2275
NY Institute of Finance - Downtown6:00pm - 8:30pm Instructional Method:
Group-Live
Instructor(s): [ William Jannace; ] Thu Level: Basic
CPE Credits: 25.0

No advance preparation required.
Students will be able to:
  • Students will be able to demonstrate a practical understanding of the following:
  • Regulations of securities markets, SROs
  • Broker/Dealer Guidelines
  • Knowledge of Capital Markets
  • Sales Practice/Supervision
  • Supervision (Federal and SRO schemes)
  • Compliance
  • Brokerage Operations - Evening
    • Scheduling Note
    There will be no class session on Thursday, March 13, 2008. There will be no class session on Thursday, October 9, 2008.
    Session 1

    Explanation of course

    • Regulatory agencies
    • Legal relationship between broker and customer
    • Liability of broker for acts of employee

    Session 2

    Churning

    • Measure of Damages
    • How to analyze an account

    Causes of large unsecured deficits

    • Check kiting
    • Trading schemes

    Proceedings

    • NYSE-ASE-RR
    • NASD

    Session 3

    Opening and Approval of Accounts

    • Registration of Options Principles
    • Approval Required

    Duties to Supervise

    • Written Supervisory Procedures
    • Senior Registered Principal

    Options Strategies

    • Purchase Options
    • Covered-Calls-Cash & Margin

    Session 4

    Restricted and Control Securities

    • Acquisition Forms
    • Qualitative vs. Quantitative Factors

    1933 Act Between Rules 144&145

    • Holding Periods
    • Pooling vs. Purchase Accounting

    Use of Derivatives Securities

    • Pooling vs. Purchase Accounting
    • Role of Broker/Dealer in Risk Management

    Session 5

    Customer accounts

    • Cash Accounts
    • Margin accounts

    Margining and Maintenance of:

    • Municipal bonds-positions
    • Repurchase agreements

    Session 6

    Blue sky

    • Broker's licensing
    • Security qualifications

    Special Rules

    • Fidelity Bonds
    • Supervision and Control of Offices

    Session 7

    Oral and Written offers

    • Section 5 of the securities Act of 1933
    • Registration statement

    Limitation of firm activities while engaged in distribution

    • Watch List

    Confirmation Disclosure

    • Soft dollars

    Session 8

    Composition

    • Centralized
    • Regionalized

    Surveillance

    • Equities
    • Employee accounts

    Customer complaints

    • Responses
    • Regulatory

    Advertising and Sales Literature

    • Review and approval
    • Special Products

    Session 9

    The Regulatory Framework

    • Securities Exchange Act of 1934
    • NASD Rule 3010
    • NYSE Rule 342

    Compliance Techniques

    • Churning Reviews
    • Solicitation Plans
    • Chinese Wall Policy
    • Internal Audit

    Session 10

    Options

    • Registered Type
    • Statutory vs. Non-statutory

    Credit ( Margin) extended against:

    • Control Securities
    • Purpose vs. Non-purpose Loans

    FINAL EXAMINATION

    Clients who register for this course will receive a complimentary 6 month subscription to the Financial Times and FT.com. The Financial Times is the world's most respected financial newspaper providing a broad assessment on finance, business and the industrial sector. Subscriptions will start within 6-8 weeks of the application process, and are limited to one per client. For questions about your subscriptions call 800-628-8088 or email uscirculation@ft.com. US and Canada enrollees only.

    Lunch included for all students taking day classes.