Series 6 cheat sheet

A retail communication is a written or electronic message distributed to more than 25 retail investors within any 30-calendar-day period; approval and filing obligations depend on its content and audience.

Communications may not promise or guarantee investment results or make misleading projections; performance must be presented with required time periods and disclosures.

Testimonials are permitted only with required disclosures, including that they may not be representative and that past performance does not guarantee future results.

Cold calls to residential telephone numbers are restricted by the National Do Not Call Registry; firms must maintain internal do-not-call lists and honor requests.

Seminar materials used to solicit business may be retail communications subject to principal approval, filing, and recordkeeping; live unscripted remarks are treated as public appearances.

Paying unregistered persons for securities referrals is generally prohibited unless the person is registered or an applicable exclusion applies.

Gifts to non-institutional persons are generally limited to $100 per person per year; gifts may not be conditioned on sales or other business.

An associated person must give written notice to the member firm before engaging in outside business activities, and the firm may require approval or limit the activity.

CIP must collect name, date of birth, address, and identification number, and verify identity within a reasonable time before or after account opening.

Suitability analysis includes reasonable-basis, customer-specific, and quantitative suitability; Reg BI imposes care, disclosure, conflict of interest, and compliance obligations.

The customer profile includes investment objectives, risk tolerance, time horizon, liquidity needs, tax status, income, net worth, experience, and existing holdings.

A trusted contact person is someone the firm may contact about exploitation or unusual activity; the firm may not share the customer's assets or proceeds with that person.

Discretionary authority requires the customer's written authorization and written approval by a designated principal, generally within 30 days of the first transaction.

Joint tenants with right of survivorship pass the account to the surviving owner; tenants in common pass the deceased owner's share to that owner's estate.

UTMA/UGMA accounts are irrevocable gifts managed by a custodian; the minor generally gains control at the state-specified age, often 18 or 21.

Beneficial ownership certification for legal entity customers identifies each individual owning 25 percent or more and one individual who controls the entity.

Mutual fund shares are bought at the public offering price, which equals net asset value plus the sales charge; redemptions are based on NAV less applicable fees.

Breakpoint discounts reduce front-end sales charges when purchases reach specified dollar levels; rights of accumulation count existing holdings toward a breakpoint.

A letter of intent allows an investor to qualify for a breakpoint on purchases made within 13 months, with shares possibly held in escrow until the commitment is met.

Share classes differ: Class A typically has a front-end load, Class B often has a CDSC, and Class C often has a level load and CDSC; expenses affect suitability.

A variable annuity's separate account is not guaranteed by the insurer; contract owners bear investment risk, while the general account supports guaranteed benefits.

Variable life insurance combines a death benefit with separate-account investments; policy values fluctuate and may be insufficient to keep the policy in force.

A 1035 exchange can move annuity or life insurance values tax-free only when the transaction meets Section 1035 requirements; partial exchanges have special rules.

ACATS transfer requests require customer authorization and are processed between member firms; the receiving firm validates the account and assets.

Mutual fund purchase and redemption orders are priced at the next NAV calculated after the order is received in good order, a practice called forward pricing.

A confirmation generally must disclose the security, amount, price, commission or sales charge, and trade date, and must be delivered at or before settlement.

Most securities transactions settle on a T+1 basis; mutual fund orders are executed at the next computed NAV and typically settle in one business day.

Firms must record the time an order is received and the time it is executed; order tickets and related records must be retained under applicable rules.

Third-party checks and unusual disbursement requests require identity verification and may require a signature guarantee or additional documentation.

Telephone and electronic instructions should be authenticated; firms may require written confirmation for certain requests, such as address or bank changes.

Redemption proceeds may be reduced by a CDSC, redemption fee, or tax withholding; the customer receives the net amount after applicable charges.

A good order instruction includes all required information; incomplete orders may be delayed or rejected, and the customer must be notified.