I was doing some exciting research for our Pass the 65 ExamCram questions and ran into this concept buried in an SEC release that was referred to by a financial planning textbook--yes, my social life really can't get any more exciting at this point. In any case, I came up with this possible Series 7, 65, or 66 question:
When does the SEC consider that a securities transaction has been "completed"?
A. when the prospectus has been received
B. when a registered representative completes the order ticket and submits it to the wire room
C. when the customer gives oral authorization for the terms of the order
D. upon settlement
EXPLANATION: a securities transaction has been "completed" when it settles/clears, at which point payment has been made, and the securities have been delivered. An investment adviser, for example, must disclose that it intends to act in a 'principal' capacity on a customer transaction and get the customer's consent no later than completion of the transaction, which is settlement. Settlement is usually T + 3 business days.