Anti-Money Laundering - Advanced

While money laundering has been a matter of concern for law enforcement and tax authorities for generations, the priority of stopping those who seek to conceal and launder funds took on a new imperative with the events of 9/11. With this eye opening day's events, it became apparent that "following the money" was one way of detecting and, hopefully, forestalling such events.

With each passing year, with each transgression detected, new schemes are uncovered and new procedures initiated to detect current paths of concealment. As a result, the area of anti-money laundering is a very fluid regulatory concern covering a broad array of domestic industries. AML does not just affect the broker/dealer and securities industry, but also the banking, credit, life insurance, and even money sending industries. Each industry has its own unique set of problems that must be addressed. Each industry must devote substantial time and money to address the ever-changing regulatory requirements.

Anti-Money Laundering - General

AML General

Anti-Money Laundering - Supervisors

While money laundering has been a matter of concern for law-enforcement and tax authorities for generations, the priority of stopping those who seek to conceal and launder funds took on a new imperative with the events of 9/11. With this eye-opening day's events, it became apparent that "following the money" was one way of detecting and, hopefully, forestalling such events.

With each passing year, with each transgression detected, new schemes are uncovered and new procedures initiated to detect current paths of concealment. As a result, the area of anti-money laundering is a very fluid regulatory concern covering a broad array of domestic industries. Anti-money laundering (AML) does not just affect the broker/dealer and securities industry but also the banking, credit, life insurance, and even money-sending industries. Each industry has its own unique set of problems that must be addressed. Each industry must devote substantial time and money to address the ever-changing regulatory requirements.

Anti-Money Laundering: Institutional Issues (Interactive)

This course will discuss anti-money laundering ("AML") regulation in the securities and will focus of several significant institutional issues in connection with that regulation.
The presentation will be divided into two lessons:
Lesson 1 - Regulatory Framework and the AML Compliance Program
Lesson 2 - Selected Institutional Issues:

• Customer Information Programs
• Clearing and Correspondent Relationships
• Due Diligence Requirements

Upon completing this course the student should have a good understanding of the structure of AML regulation in the securities industry and an awareness of some specific issues currently facing securities firms in meeting their AML obligations.

Anti-Money Laundering for Financial Professionals

Money laundering plays a fundamental role in facilitating the ambitions of drug traffickers, terrorists, organized criminals, insider dealers, tax evaders, and many others who need to avoid the attention from authorities that sudden wealth from illegal activities brings. In using money laundering, criminals seek to make their ill-gotten profits beyond the reach of asset forfeiture laws. Financial institutions such as insurance companies are at the forefront of the battle against money launderers. Under current legislation, insurance companies are responsible for policing their financial dealings and reporting suspicious transactions. This course will examine anti-money laundering regulation in the insurance industry, specifically focusing on the USA PATRIOT Act of 2001, the Suspicious Activities Report (SAR), the Customer Identification Programs (CIP), and the "Know Your Customer" provision (KYC).

Preventing Insider Trading (Comprehensive Course)

This course introduces the concept of insider trading. You will learn what constitutes insider trading and who is characterized as an 'insider.' This course will also shed light on the many negative effects of insider trading and how best a company can prevent this type of activity. This course also introduces the SEC's laws for compliance in relation to insider trading. You will also learn about insider trading plans and the types of information they should include.

Preventing Insider Trading: Introduction to Insider Trading (Compliance Snapshot)

This course introduces the concept of insider trading. You will learn what constitutes insider trading and who is characterized as an 'insider.' This course will also shed light on the many negative effects of insider trading and how best a company can prevent this type of activity.

Preventing Insider Trading: Laws, Compliance, Penalties (Compliance Snapshot)

This course introduces the SEC's laws for compliance in relation to insider trading. In this course you will learn about the SEC's financial disclosure guidelines and what you must do to be in compliance with the SEC's blackout events. You will also learn about insider trading plans and the types of information they should include.

Internal Control and Fraud Detection

COURSE LEVEL:
Basic

COURSE DESCRIPTION:
This course covers the essential tools needed to perform internal-control related services. The course will take the student through the client’s responsibility to design and implement programs and controls to prevent, deter, and detect fraud. The course also touches on internal control over financial reporting in accordance with Section 404 of the Sarbanes-Oxley Act. The course covers Management’s Antifraud Programs and Controls and the risk factors included in SAS No. 99. This course provides useful indicators and checklists, such as: indicators of financial crime, the ACFE’s fraud prevention checkup, internal control assessment forms, computer applications checklist, and financial reporting information systems and controls checklist.

LEARNING OBJECTIVES:
• List the purposes of internal auditing.
• Describe the stages in the audit process.
• Identify the five components of internal control.
• Differentiate between the new reporting model and historical reporting.
• Outline sample audit programs for the balance sheet, income statement and cash flow accounts.
• Explain SAS 99- Consideration of Fraud in a Financial Statement Audit.
• Understand risk factors relating to misstatements arising from misappropriation of assets.
• Define tests of controls.
• Identify sampling risk and control risk.
• Distinguish between attribute, variable, discovery, stratified,
non-statistical and statistical sampling.
• Understand how to prevent fraud.
• Describe the role of a Certified Fraud Examiner (CFEs).

TOPICS COVERED:
• Chapter 1: Internal Control and the Internal Audit Function
• Chapter 2: Internal Audit of Financial Statement Accounts
• Chapter 3: Statistical Sampling in Tests of Controls
• Chapter 4: Fraud Prevention, Fraud Detection, and Forensic Accounting
• Appendix A: Indicators of Financial Crime
• Appendix B: Internal Control Forms and Checklists

REGULATORY REQUIREMENT:
Please see the state requirements section on the course catalog page.

SEAT TIME:
This course has been approved for 8 hours.

COURSE PRE-REQUISITE:
N/A

TESTING:
The student will be required to pass the final exam with a 70% in order to receive course credit

COURSE COMPLETION:
Upon successful completion of this course, the student will be able to print their certificate online.

ABOUT THE SUBJECT MATTER EXPERT:
Dr. Jae K. Shim is Professor of Business at California State University, Long Beach,

California. Dr. Shim received his MBA and Ph.D. degrees from the University of California at Berkeley (Haas School of Business.) He has co-authored over 50 professional business books and has been a consultant to commercial and nonprofit organizations for over 30 years.

Investment Risk & Policy - FE

This course covers broad issues of investment risk and policy, including economic factors that affect investments. Further, the idea of investment risk is defined and expanded upon, and then applied to the concept of suitability.

Specialized Industries GAAP

This course discusses all of the important authoritative pronouncements on GAAP for specialized industries. This course addresses accounting principles, financial reporting presentation requirements, required and recommended disclosures for such industries as: banking, broadcasting, cable television, computer software, franchising, insurance, motion picture, record and music, government contracts, oil and gas producing, real estate, not-for-profit, finance, and the mortgage banking industries.

Revenue Recognition: Rules and Standards

A record number of companies are revising their financials. The most frequent cause of financial restatements was revenue recognition, which accounted for 16.4 percent of all restatements in 2004 and 19 percent during the past five years. This course covers the accounting, reporting, and disclosures associated with revenue recognition for the sale of products or rendering of services. Revenue involves a gross increase in assets or decrease in liabilities. Revenue may be recognized at the time of sale or service, during production, at the completion of production, and at the time of cash receipt. Long-term construction contracts may be accounted for under the percentage-of-completion method or the completed contract method. When a right of return exists, revenue may or may not be recognized, depending on the circumstances. The accounting treatment of warranty and maintenance contracts, contributions, and computer software is also discussed.

The Sarbanes-Oxley Act: The Executive Viewpoint (Compliance Snapshot)

This course introduces a new perspective regarding the Sarbanes-Oxley Act: That of the executive. In this course you will learn about the new responsibilities that were placed on management and auditors as a result of section 404 of SOX. You will also learn how section 802 penalizes executives found in violation of SOX and how section 1107 of SOX protects whistleblowers.

Communication with the Public - Supervisory Level (Interactive)

This course is intended to provide guidance to broker/dealer-compliance and supervisory personnel in understanding regulatory rules and issues generally related to communication with the public and more specifically electronic communication.

Communication with the Public for the Registered Rep (Interactive)

This course is a discussion of the basic rules and standards that apply to all forms of communication with the public. The focus is on the registered representative and the everyday challenges they face in conducting business within the confines of strict regulatory parameters.

Compliance Issues for Investment Bankers (Interactive)

This course introduces the unique compliance challenges faced by broker/dealers in the investment banking industry. Specifically, this course covers the Securities Act of 1933, registration requirements, and FINRA rules. You will also learn about the components of a supervisory system and the importance of record keeping, among other things.

Coping with SEC Rule 151A

As published in the Federal Register on January 16, 2009, the Securities and Exchange Commission has formalized its position on what exactly an equity-indexed annuity is. The SEC has stated:'We are adopting new Rule 151A under the Securities Act of 1933 in order to clarify the status under the federal securities laws of indexed annuities, under which payments to the purchaser are dependent on the performance of a securities index. Section 3(a)(8) of the Securities Act provides an exemption under the Securities Act for certain ''annuity contracts,'' ''optional annuity contracts,'' and other insurance contracts. The new rule prospectively defines certain indexed annuities as not being ''annuity contracts'' or ''optional annuity contracts'' under this exemption if the amounts payable by the insurer under the contract are more likely than not to exceed the amounts guaranteed under the contract.'Rule 151A shall be effective January 12, 2011.

Do Not Call & the Securities Industry

Public outcry has resulted in the states seeking protection for consumers through legislation. Recently, this effort has been taken to a national level, with the establishment of the National Do Not Call Registry.

FINRA and Back Office Functions (Interactive)

When a trade occurs, there are many other functions that must be performed by the brokerage firm. These functions include keeping records of each trade and receipt and delivery of funds and securities. They are normally performed by various departments within a firm, collectively referred to in the industry as 'the back office'. This course will walk the student through the functions of the back office, looking at the roles and responsibilities of its many departments.

FINRA Communication Standards

A registered representative devotes many hours to prospecting for new customers and providing service for existing customers. This requires communication with the public, both oral and written. However, what do the various regulatory bodies require when it comes to this vital communication? This course details those requirements, explaining the rules of conduct and character expected from all registered representatives.

Gifts, Gratuities and Regulation (Interactive)

Ever since goods and services were first offered to customers, 'specials', 'deals', ' buy one, get one free', and other incentives have been offered to increase sales and spread the word about the seller's product. The securities industry has been no different; clients are offered discount pricing on trades, bonus on annuities and 'free' research on an array of investment opportunities.

Institutional Communication and Advertising

This course covers regulations imposed on advertising and sales literature to ensure all communications with the public adhere to industry guidelines.

Research Analysts Professional Responsibility and Rule 2711 (Interactive)

This course will address the professional responsibilities of research analysts with particular attention to the standards adopted by the leading analysts' professional society and the federal regulations governing analysts' conduct and qualifications.

The course is presented in two lessons:

• Lesson 1 - The Role of the Research Analyst and Professional Standards
  
  
• Lesson 2 - Regulation: Conflicts and Certification

Municipal Securities: Sales Practices and Supervisory Requirements (Interactive)

This course will examine the regulatory issues affecting (i) sales practices of securities firms and registered representatives in the sale of municipal securities and (ii) the supervisory requirements applicable to securities firms regarding the sale of municipal securities.

This presentation will be divided into two lessons:
Lesson 1 - Municipal Securities Sales Practices
Lesson 2 - Supervision of Municipal Securities Sales

Upon completing this course the student should have a good understanding of the regulatory framework affecting the activities and responsibilities of firms and registered representatives involved in the sale of municipal securities.

Options Communications Rules (Interactive)

This course will discuss the regulation of options communications by securities broker-dealers. For presentation purposes, it is divided into two lessons:
Lesson 1 - Basic Options Terms and the Options Disclosure Document
Lesson 2 - Options Communications Rules

Outside Business Activities: Regulation and Supervision (Interactive)

This course will address the regulation of outside business activities in the securities industry and the supervision within the industry of those engaged in outside business activity. The course is divided into two lessons:
Lesson 1 - Regulation: FINRA Rule 3270 and NASD Rule 3040
Lesson 2 - Supervision and Enforcement

Outside Business Activities (Interactive)

The number of FINRA sanctions against registered personnel engaged in outside business activities without their Broker-Dealers' authorization underscores the importance of reviewing the term 'outside business activity', as well as relevant FINRA rules and pertinent fines, suspensions, and other penalties. The goal of this course is to help registered representatives and their supervisors understand the importance of asking permission before such activities are conducted, and the implications of asking forgiveness after.

Private Placement Securities - Advanced

The term 'private placement' as used in this material refers to the offer and sale of any security by a brokerage firm not involving a public offering. Private offerings are not the subject of a registration statement filed with the SEC under the 1933 Act. Private placements are done in reliance upon Sections 3(b) or 4(2) of the 1933 Act as construed or under Regulation D as promulgated by the SEC, or both. Regulation D, promulgated in 1982, sets forth certain guidelines for compliance with the Private Offering Exemption. Any registered representative who is involved in the private placement process is expected to have a working familiarity with Regulation D.

Protecting Senior Investors (Interactive)

This course will discuss initiatives by securities regulators to protect senior investors. The course is divided into two lessons:
Lesson 1: Defining the Problem, The 2006 and 2007 Senior Summits, and FINRA Regulatory Notice 07-43
Lesson 2: 2008 Senior Summit, Best Practices, and Enforcement

Red Flags for Seniors (Interactive)

This course covers a broad range of issues related to senior investments to help the student learn ways to guide clients through the various deferred annuity products and find which may be the most advantageous to them. It includes the following lessons:
- A Brief History
- Ethics
- Suitability
- Products Targeted toward Seniors
- Best Practices for Dealing with Senior Investors

Supervisory Controls and Procedures under NASD Rules 3010, 3012 and FINRA Rule 3130 (Interactive)

This course introduces the concepts of supervisory controls and procedures. As with most regulatory agencies, FINRA and the SEC try to learn and grown from bad experiences. In recent years, a single name has become notorious, recognizable by virtually every registered representative and supervisor in the securities industry. That name is Gruttadauria. In this course we will learn about Gruttadauria and how this person's actions forever changed the securities industry's approach to supervisory controls and procedures.

The Dodd-Frank Wall Street Reform and Consumer Protection Act (Interactive)

This course will examine the Dodd-Frank Wall Street Reform and Consumer Protection Act ("Dodd-Frank", or the "Act") with an emphasis on those provisions of most immediate impact on thae securities business. For presentation purposes, the course is divided into two lessons:
Lesson 1 - Overview of Dodd-Frank
Lesson 2 - Dodd-Frank Impact on the Securities Industry

The SEC's Books and Records Requirements - The Basics

The SEC books and records regulations are primarily found as Rule 17 a-3 and Rule 17 a-4. Rule 17 a-3 describes what records must be created while Rule 17 a-4 defines maintenance and retention periods for these records. 

Understanding the Regulation of Electronic Communication (Interactive)

Innovations in the area of electronic communications over the last few decades have altered how people communicate with each other. These innovations have brought, and continue to bring, new challenges to FINRA members in the establishment of supervisory systems and procedures for electronic communications that are reasonably designed to achieve compliance with applicable federal securities laws and self regulatory organization (SRO) rules.

FINRA has issued some guidance for members to consider when developing internal systems and procedures. While FINRA recognizes that policies and procedures may differ among members depending on their business model, affirmative actions are required to meet regulatory requirements.

Understanding the Rules of FINRA (Interactive)

This course provides a thorough introduction to FINRA rules and regulations that govern broker/dealers and their associated persons. Among the policies that are examined in this course are conduct rules and the Code of Procedure for disciplining member firms and registered representatives, the Code of Arbitration procedure for industry or customer disputes, the Code of Mediation Procedure, and various NYSE rules. You will also learn FINRA's standards for public communications, regulations for the OTC market, how to process orders, and back office functions. Understanding the Rules of FINRA addresses all of these issues in detail and provides you with knowledge that you will use throughout your career.

Unit Investment Trusts (UITs)

This module, Unit Investment Trusts, is designed to provide financial professionals with an understanding of the various types of investment companies. It also explains the goals of The 1940 Investment Company Act and the regulatory role of the SEC over the securities industry. To achieve this, the module explains in detail the characteristics of a variety of unit investment trusts, or UITs. Finally, it provides a discussion of the many benefits of investing in IUTs along with their associated investment risks.

Variable Annuities: Advanced (Interactive)

The role of an insurance company and the products it offers is to protect its policy holders against a variety of risks. Insurance protects your property, your health, your life, and business relationships. A by-product of the protection offered by insurance companies has evolved into what we know as annuities; these products are designed to protect policy owners against the risk of outliving a source of income.

Variable Annuities for Supervisors (Interactive)

The most significant concerns facing principals charged with supervising variable annuity business is meeting the ever-changing policies and regulation imposed by state and federal security authorities. Regulators are notorious for taking defined regulations and statutes and formulating internal policies and interpretations and imposing these upon the broker/dealer community.

The sale of variable annuity products is an authorized area of business for most retail broker/dealers, yet the regulatory authorities have arbitrarily decided that the sale of variable annuities is a suspect act that must be individually justified and defendable when questioned. Sales of variable annuities to seniors are on the top of the regulators' Hot Topic list; this material focuses on meeting stated and unstated regulatory policies.

Variable Annuities – General (Interactive)

The role of an insurance company and the products it offers is to protect its policy holders against a variety of risks. Insurance protects your property, your health, your life, and business relationships.

A by-product of the protection offered by insurance companies has evolved into what we know as annuities; these products are designed to protect policy owners against the risk of outliving a source of income.

Vulnerable Clients: Identity Theft and Financial Exploitation (Interactive)

This course will discuss the problems of vulnerable clients in the areas of identity theft and financial exploitation. In both areas the focus will be on the regulatory response - enforcement and compliance - and on the obligations of securities firms and their registered representatives.
The presentation is divided into two lessons:

• Lesson 1 - Vulnerable Clients and Identity Theft
• Lesson 2 - Vulnerable Clients and Financial Exploitation

Upon completing this course, the student should have an understanding of the factors involved in client vulnerability and an awareness of the special responsibilities of the registered representative with regard to identity theft and financial exploitation.

Wrap Fee Accounts (Interactive)

This course introduces the wrap fee account industry. You will learn the basics of a wrap account and how it functions. You will also learn about the information that is required for the wrap account and in turn, what information the client should be provided. Essentially, this course will not discuss the strengths and weaknesses of the investments, but rather provide a breakdown of the industry.

Advanced Supervision (Interactive)

This course provides context regarding principal registration under rules 1021 and 1022 and the role of the Chief Compliance officer in a member firm.

Advertising - Financial Professionals (Interactive)

This course introduces the concept of advertising, including the various forms of advertising, the products being advertised, and the regulations and rules in place to ensure that advertisements do not threaten or harm the public.

Brokerage, Mutual Fund and Variable Product Sales Practices (Interactive)

This course introduces the FINRA's Interpretive Memo, which is where regulators outline the basis for sound sales practices. You will learn about FINRA's firm position on fair dealing, as well as the ethical standards of the FINRA Rules, with particular emphasis on the requirement to deal fairly with the public.