Question

A client is on vacation and goes out bicycling. During the excursion, his wallet falls out of his pants. He realizes the loss shortly after when stopping for an afternoon glass of wine and reports the loss immediately. In the wallet are his Discover, American Express, Citibank MasterCard and Capital One Visa. When reporting the loss, he is relieved to find that there have been no charges made on the cards. The next morning, out of curiosity, he goes online to check his balances. He is shocked to see the following charges since the cards have been reported stolen. Your client is responsible for _____.

            Discover                      $25

            American Express        $0

            MasterCard                  $3,000

            Visa                              $5,025

  

$0

$125

$200

$8,050

Justin, a CFP® professional, has received an order of suspension from CFP Board.  Which of the following is Justin required to do, according to the Disciplinary Rules and Procedures?

Within 5 days Justin must pay CFP Board a fine of up to $10,000.

Within 10 days Justin must pay restitution to all clients harmed by the action that caused his suspension.

Within 15 days Justin must report the suspension to the attorney general of the state in which Justin’s primary office is located.

Within 30 days Justin must provide to CFP Board evidence that he has ceased all use of the marks.

A registered investment adviser is required to keep all the following records, EXCEPT:

Written agreements with clients

Names of securities recommended

Documents granting discretionary power

Log of phone calls to clients

The Truth-in-Lending Act requires all of the following items in a loan transaction be disclosed, EXCEPT:

		The total amount of all payments
		The annual percentage rate (APR) applicable to the loan
		The cost of credit life insurance, if required.
		The number to call to get a free copy of one’s credit report.

Answer 1

1. Client will be responsible for amount $0. Since until reporting the loss of cards, no charges were made on the cards and the charges only appeared the next day after the loss had been reported to assumably all respective card companies, client should not be charged at all. Hence option a is correct.

2.

3. d) Log of phone calls to clients

As per NASAA Recordkeeping Requirements For Investment Advisers Model Rule 203(a)-2, all other record of documents listed in question are required to be kept.

4. The TILA enacted in 1968, requires the following information to be disclosed:

• Total cost to borrower( this shall include all additional cost inlcuding insurance if applied)
• APR applicable to loan
• Term of the loan

Thus option d is correct.