Customer Confirmations
Chapters in this video
- 0:00 The three parallel confirmation rules and 529 plan trap
- 1:47 Anatomy of a confirmation: required fields and control relationship gotcha
- 2:52 Agent vs. principal capacity and the net transaction label
- 4:33 Product specifics: mutual funds, variable annuities, and municipal funds
- 5:13 Third-party mailing: why verbal authorization fails and duplicate delivery rules
- 6:03 Rapid-fire exam recap
What this video covers
- The three parallel confirmation rules (SEC, FINRA, MSRB) and which governs municipal fund securities like 529 plans and Achieving a Better Life Experience (ABLE) accounts
- The "at or before completion" timing standard, including why mutual funds and variable annuities follow a 1-to-3-business-day window instead of settlement date
- Every required component on a confirmation, and why control relationship disclosure is not among them
- Capacity distinctions (agent vs. principal) and what each means for commission, markup, markdown, and net price disclosure
- Net transactions: when a single all-in price requires the word "net" to be printed on the confirmation
- Product-specific confirmation details for mutual funds (net asset value (NAV), public offering price (POP), forward pricing), variable annuities (subaccounts, accumulation units, contingent deferred sales charge (CDSC)), and municipal fund securities
- Third-party mailing requirements: why verbal authorization fails, why written authorization is required, and why duplicate delivery to the customer is mandatory
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