Required Disclosures, Risks, and Fees: Rapid Fire
Chapters in this video
- 0:00 Prospectus delivery versus Statement of Additional Information on request
- 1:21 Systematic risk: the market meteor and diversification limits
- 2:48 Municipal bond fund inside an IRA: the tax-exemption waste
- 3:34 Long-term gain distributions: the fund's holding period controls
- 4:17 Gift basis versus inherited basis: carryover versus step-up
- 4:43 The 8.5% sales charge cap and its conditional requirements
- 5:49 Annual gift exclusion, gift-splitting, and 529 superfunding
- 6:10 Senior-hold clock: 15 to 25 to 55 business days
- 7:07 Trusted Contact Person limits and available funds versus net worth
- 7:39 Reverse churning and fee-based account suitability
- 8:20 Tax-free annuity exchange: surrender period reset trap
- 8:59 Rapid-fire exam recap
What this video covers
- What Rita the rep must deliver automatically (prospectus at or before confirmation) versus on request only (Statement of Additional Information, free of charge)
- Why systematic risk survives a fully diversified portfolio while nonsystematic risk does not, and how to spot the exam bait on each
- The tax trap of holding municipal bonds inside an Individual Retirement Account, and why return character flows through under Subchapter M
- How long-term capital gain distributions are long-term to the shareholder regardless of personal holding period, since the fund's 12-month test controls
- The difference between gift basis (donor's basis carries forward) and inherited basis (steps up to date-of-death fair market value with automatic long-term treatment)
- Why the 8.5% aggregate sales charge cap is conditional on breakpoints, Rights of Accumulation, and zero service fee, not a blanket guarantee
- The senior-hold progression (15 to 25 to 55 business days), who places the hold (the firm, not the rep), and what a Trusted Contact Person can and cannot do
Read the full lesson, free
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