Industry Regulations Flashcards
7 cards from real GAT practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Industry Regulations flashcards as text
Under ERISA, a plan fiduciary who manages employee benefit plan assets is held to which standard of conduct?
Answer: Prudent expert standard
ERISA holds plan fiduciaries to the 'prudent expert' standard, requiring them to act with the care, skill, prudence, and diligence of a knowledgeable person familiar with such matters.
Which EPA program requires facilities storing hazardous chemicals above threshold quantities to submit an emergency response plan to local authorities?
Answer: EPCRA Section 302 (SARA Title III)
EPCRA Section 302 (part of SARA Title III) requires facilities with extremely hazardous substances above threshold quantities to notify local emergency planning committees and submit plans.
The FTC's 'Red Flags Rule' requires certain businesses to develop programs to detect and respond to what?
Answer: Identity theft warning signs
The FTC's Red Flags Rule requires financial institutions and creditors to implement programs to identify, detect, and respond to warning signs ('red flags') that indicate possible identity theft.
Under the National Labor Relations Act (NLRA), which employer action is considered an unfair labor practice?
Answer: Threatening employees for engaging in union organizing activities
Under the NLRA, threatening employees for participating in union organizing or other protected concerted activities is an unfair labor practice prohibited by Section 8(a)(1).
In the financial industry, Regulation T set by the Federal Reserve governs what aspect of brokerage accounts?
Answer: Initial margin requirements for purchasing securities on credit
Regulation T limits the amount of credit that brokers and dealers may extend to customers for buying securities, setting the initial margin requirement at 50% for most equity securities.
Under EPA's Resource Conservation and Recovery Act (RCRA), a 'conditionally exempt small quantity generator' of hazardous waste generates how much waste per month?
Answer: Less than 100 kg (about 220 lbs)
Under RCRA, a Very Small Quantity Generator (formerly CESQG) generates less than 100 kg of hazardous waste per month and faces the least stringent regulatory requirements.
Which SEC regulation requires broker-dealers to act in the best interest of retail customers when making investment recommendations?
Answer: Regulation Best Interest (Reg BI)
SEC's Regulation Best Interest (Reg BI) requires broker-dealers to act in the best interest of retail customers and not place the firm's or advisor's financial interests ahead of the customer.