Retail Securities case studies
Retail Securities · Put your knowledge to work in context.
Retail Securities is the exam title you have supplied, and it sits in the wider family of professional qualifications offered by the Chartered Institute for Securities & Investment (CISI), a financial services professional body whose qualifications, membership and continuing professional development (CPD) provision are set out on its website. CISI describes itself as a professional body with more than 54,000 members worldwide, and it publishes a qualifications navigator, learning materials, an exam booking service and a learning platform that candidates can use to prepare. The Retail Securities case studies are 5 cases and about 2,384 words.
1Client Suitability Under a Time Squeeze
A 61-year-old client, recently widowed, holds 540,000 in an IRA and 90,000 in a taxable account. Her stated goal is to draw $2,800 per month starting in 14 months to supplement Social Security.
531 words, about 3 min2Churning Signals in an Advisory Account
A registered representative manages 1.2 million for a 74-year-old retired teacher with a conservative profile and a fixed income need of 4,000 per month. Over the past 11 months, the account has generated $38,000 in commissions and 62 trades, including repeated purchases and sales of the same three mutual funds within weeks.
459 words, about 2 min3Margin Call on a Concentrated Position
A client holds 8,000 shares of his employer's stock, worth 480,000, in a margin account with a 260,000 debit balance. The stock has fallen 22% in three weeks after a disappointing earnings report, and the maintenance requirement on the position is 30%.
468 words, about 2 min4Senior Client With Suspected Diminished Capacity
An 83-year-old client has managed her own 700,000 portfolio for 20 years and has always been sharp and decisive. In the past two months, she has called four times to ask the same question about her account balance, authorized a 50,000 transfer to a "new friend" she met online, and told you her nephew should now be able to trade the account.
459 words, about 2 min5Breakpoint and Share-Class Decision
A client wants to invest 95,000 in a mutual fund family. The fund offers Class A shares with a 5.75% front-end load that breaks at 100,000, Class B shares with a 5% contingent deferred sales charge that declines over six years and converts to Class A after eight years, and Class C shares with a 1% level load and a 1% CDSC for one year.
467 words, about 2 min