Tracking of Billing and Finalization
Chapters in this video
- 0:00 What billing and finalization actually covers
- 0:40 The four closing artifacts and who builds each
- 1:44 SEC record-keeping: customer allocation vs. communications retention
- 2:43 Settlement memo vs. itemized member statement
- 3:48 The syndicate-account P&L: income, expenses, allocation
- 4:57 Gross spread three ways and stabilization loss traps
- 6:08 League tables are reputational, not regulatory
- 6:48 Rapid-fire exam recap
What this video covers
- The three components of gross underwriting spread (manager's fee, underwriting fee, selling concession) and why the exam punishes conflating them
- How stabilization losses hit the syndicate-account P&L as a pro rata expense and why members can end up owing the manager on final settlement
- Why over-allotment (green shoe) exercise proceeds flow into the standard income bucket, not a separate reserve
- The distinction between the syndicate-account settlement memo (internal workpapers) and the itemized member statement (FINRA-required external delivery)
- The four deal-closing artifacts: settlement memo, itemized statement, final closing binder (transaction bible), and league-table submission
- Which records fall under SEC records-to-be-made rules versus the communications retention regime, and the three-year retention period for issuer correspondence
- Why league-table submissions are purely reputational, not regulatory, and never trigger record-keeping violations
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