Function, Purpose, and General Structure of Financial Institutions

Free CFP Exam lesson in Professional Conduct and Regulation. 13 min read, ~1,932 words.

FDIC = bank deposits; SIPC = brokerage firm failure, neither covers market losses. FDIC: $250,000 per depositor / institution / ownership category. SIPC: $500,000 per customer, max $250,000 in cash. RIA fiduciary duty is ongoing; broker-dealer Reg BI is point-of-recommendation only. Variable products (annuities, life) require dual licensing: state insurance...

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