Financial Regulation

(also drawee bank) the bank that pays the amount of money that is written on a cheque or bank draft by the owner of an account at that bank: A drawee is responsible for knowing his drawer’s signature and cannot recoup from the person who presented the draft if it…

What are the effects of government regulation? According to critics, government regulations slow disruptive innovations and fail to adapt to changes in society. Others argue that there are good reasons for regulation. In pursuit of profit, businesses have damaged the environment, abused labor, violated immigration laws, and defrauded consumers. How…

What is a BSA mean in a bank? The Bank Secrecy Act The Currency and Foreign Transactions Reporting Act of 1970—which legislative framework is commonly referred to as the “Bank Secrecy Act” (BSA)—requires U.S. financial institutions to assist U.S. government agencies to detect and prevent money laundering. What is BSA…

G-10 is woven fiberglass soaked in an epoxy resin and then compressed and baked. It is very dense, lightweight, and impervious to water. Makes for a very tough and durable handle material. What is G-10 Grip? An extremely durable and water resistant semi-auto grip. G-10 material is a fiberglass based…

Independent regulatory commissions are created to insulate the agency from congressional and presidential control through the appointment of commissioners who can’t be fired by the president. What does an independent regulatory commission do quizlet? What is an Independent Regulatory Commission? A government agency responsible for some sector of the economy,…

The federal bureaucracy makes regulations (the rules by which federal and state programs operate) through an administrative process known as rule making. Regulations can be challenged in court, and they are not put into effect until the legal issues are resolved. How the bureaucracy carries out policy? The bureaucracy makes…

Regulation D under the Securities Act provides a number of exemptions from the registration requirements, allowing some companies to offer and sell their securities without having to register the offering with the SEC. What is Regulation D most known for? Regulation D lets companies doing specific types of private placements…

Nearly two decades after its passage, SOX is recognized around the globe for its effectiveness in promoting trusted financial reporting and high levels of audit quality. How effective was the Sarbanes-Oxley Act? Indeed, it can be argued that the act has been a great success—it fundamentally changed the relationship between…

AML red flags are common warning signs alerting firms and law enforcement to a suspicious transaction that may involve money laundering. What are red flag indicators? What Is a Red Flag? A red flag is a warning or indicator, suggesting that there is a potential problem or threat with a…

Phase I defines an exempt entity as a bank, credit union, any government entity, and any publicly traded company listed on a major stock exchange. Franchises, or those companies not actually owned by the publicly traded company, are not exempt under Phase I. Which one of the following may be…

Rule 15c3-3(j) governs the treatment of customer funds held as free credit balances in customer securities accounts, including when such funds are automatically deposited, or “swept,” into bank deposit accounts through a broker-dealer’s sweep program (“Sweep Program”). What is 15c3 account? Securities and Exchange Commission (SEC) Rule 15c3-3 requires brokerage…

Rule 144 does not apply to private transactions, including sales, gifts, estate distributions and pledges, but does apply to the purchaser, donee, beneficiary and pledgee, when they sell the stock into the public market. Who can sell under Rule 144? Provided its conditions are met, Rule 144 allows persons who…

Who created the NCTC? President George W. Bush History. The precursor organization of NCTC, the Terrorist Threat Integration Center (TTIC), was established on May 1, 2003, by President George W. Bush by Executive Order 13354. President Bush announced the creation of TTIC in his 2003 State of the Union Address.…

To protect consumers from abusive financial services practices. What was the primary purpose of the Dodd Frank Act? The most far reaching Wall Street reform in history, Dodd-Frank will prevent the excessive risk-taking that led to the financial crisis. The law also provides common-sense protections for American families, creating new…

Only one private fund adviser should complete and file Form PF for each private fund. If the adviser that filed Form ADV Section 7. B. 1 with respect to any private fund is required to file Form PF, the same adviser must also complete and file Form PF for that…

The Personal Property Securities Act 2009 (PPS Act) established a single, national, online Personal Property Securities Register (PPS Register). The PPS Register allows lenders and businesses to register their security interests over personal property. What is meant by PPSA? PPSA means the Personal Property Security Act or such other applicable…

The passing of the Sarbanes-Oxley Act (SOX) in 2002 established rules to protect the public from fraudulent or predatory practices by corporations and other business entities. The act increased transparency in financial reporting by corporations, and established a system of internal corporate checks and balances. What are the 4 SOX…

NPI may include names, addresses, phone numbers, social security numbers, bank and credit card account numbers, credit or debit card purchases, court records from a consumer report, or any other consumer financial information that: a consumer provides to a financial institution. What are examples of non-public personal information? For example,…

The RBC requirement is a statutory minimum level of capital that is based on two factors: 1) an insurance company’s size; and 2) the inherent riskiness of its financial assets and operations. That is, the company must hold capital in proportion to its risk. How do you calculate total risk…

Unregistered shares are any form of company stock that does not have an effective registration statement on file with the SEC. What are examples of unregistered securities? Examples include: large capitalization public companies offering investment grade securities to institutional investors worldwide, companies offering investment grade notes to a small group…