STC Series 66 Final #1 And 2 Complete Questions And Answers With Verified Solutions

STC Series 66 Final #1 And 2 Complete Questions And Answers With Verified Solutions A client purchases an equity-indexed annuity contract that guarantees a 4% return or 80% of the performance of the S&P 500, whichever is greater. The index declines over the course of the next year. What return will your client receive? - Correct Answer 4% An equity-indexed annuity guarantees the contract owner a minimum interest rate or the performance of a stock index such as the S&P 500 Index. If the return on this index is less than the guaranteed rate, the owner receives the guaranteed rate. If the index return is greater than the guarantee, the owner receives the greater return. (62437) The investment policy statement of a qualified retirement plan states that no more than 50% of the plan's assets may be invested in stocks. The investment manager places 65% of the plan's assets in stocks in order to take advantage of a bull market and increase the value of the plan's assets. Has the investment manager violated the fiduciary responsibility provisions of ERISA? - Correct Answer Yes, since the investment manager did not follow the stipulations of the investment policy statement This is an actual court case. The plan's trustees sued the investment manager who was held liable even though the plan's assets increased. (62146) All of the following choices are required to be included in a trade blotter, EXCEPT: - Correct Answer The amount of interest or dividends the investor will receive Broker-dealers and investment advisers are required to keep certain books and records. One of them is a blotter, which is a daily record of all purchases and sales of securities. The trade blotters contain information concerning the transaction such as the account in which the trade was executed, the trade date, the unit value and total value of the transaction, the name and amount o