The final Series 82 function concerns purchase instructions and completing transactions. It carries three scored questions, but it connects the offering documents to what the firm actually does with the customer’s investment. Focus on the sequence and the conditions that must be satisfied before each step.
Is an indication of interest a completed purchase?
An indication of interest is not the same as an accepted subscription. Determine what the offering documents require for a binding commitment, acceptance, payment, and completion. A customer saying they are interested does not authorize every later action needed to invest.
Suppose a customer expresses interest in a private offering, then receives a subscription agreement with restrictions they have not reviewed. The representative should not treat the earlier conversation as a substitute for the required instructions and documents. Check what has actually been agreed to.
How do contingency offerings affect customer funds?
A contingency offering makes completion depend on stated conditions, such as raising a minimum amount by a deadline. Those conditions affect the handling of investor money. Exchange Act Rule 15c2-4 addresses the transmission or maintenance of payments in covered distributions.
An all-or-none offering and a mini-max offering create different fundraising conditions. In both cases, read the actual condition instead of assuming the issuer may use money as soon as a representative receives it. The applicable bank-account or escrow arrangement is part of the process, not a detail to fix after closing.
For example, if the offering requires a stated minimum by a deadline, missing the target does not become acceptable merely because management expects another subscription next week. Evaluate the offering terms and applicable requirements; do not improvise a release of funds.
Do private placements all settle on the same schedule?
Do not assume a private subscription follows the same process as an exchange-traded stock order. Read the offering documents, acceptance conditions, and payment instructions, and apply the relevant rules. The question may give you a condition that has not been met even though a customer has signed a form.
Confirmations and records document what the firm completed. Exchange Act Rule 10b-10 governs confirmations for covered transactions, subject to its provisions and exceptions. Learn the applicable requirements rather than treating an informal email as a universal substitute.
How should a representative handle a written complaint?
Follow the firm’s complaint procedures and preserve the required record. A complaint does not stop being a complaint because the customer sends it by email or the representative believes the customer misunderstood the product. FINRA Rule 4513 addresses records of written customer complaints.
Separate recording and escalating a complaint from determining whether a particular event triggers a regulatory report. FINRA Rule 4530 has reporting requirements for specified events. “Every complaint gets the same immediate external report” is not a substitute for reading the applicable requirement.
What should you check in a transaction question?
Check the instruction, the acceptance, the condition on funds, and the required record. Work out which step is missing before choosing the most familiar procedural word. The recommendations guide explains the obligations earlier in the same relationship.
Use the Series 82 practice test to apply the sequence, then review the cheat sheet for topics you need to revisit in the course.