Glossary of Terms
Updates are open for review; srvo approval is still pending. Log the approval in the compliance change log after terminology is confirmed.
This glossary keeps shared language aligned across SOPs, compliance policies, and mirrored docs. Terms are listed alphabetically; add new entries only after confirming they appear in at least one published section.
1 Terms
1.1 Anti-Fraud Provisions
Federal securities laws prohibit the firm and its personnel from employing any device, scheme, or artifice to defraud a client or prospect, or from omitting a material fact needed to make prior statements not misleading.
1.2 Associated Person (AP)
Anyone performing work for the advisory business—employees, IARs, contractors, or interns—when they have access to client information or systems as determined by the CCO.
1.3 Assets Under Management (AUM)
Total market value of client assets for which the firm provides continuous and regular supervisory or management services.
1.4 Branch Office
Any location that meets the statutory definition of a branch for the firm’s registrations.
1.5 Central Registration Depository (CRD)
FINRA’s database that houses licensing and registration records for broker-dealers and investment advisers.
1.6 Disclosure Reporting Page (DRP)
Attachment to Form ADV or Form U-4 that captures detailed information about disciplinary events or other reportable matters.
1.7 Federal Securities Laws
Collective reference to the Advisers Act, Investment Company Act, Securities Act of 1933, Exchange Act of 1934, Sarbanes-Oxley, Gramm-Leach-Bliley Title V, and Dodd–Frank, as they apply to registered investment advisers.
1.9 Firm / We / Us
Ethical Capital Investment Collaborative acting in its capacity as a registered investment adviser.
1.10 Investment Adviser Registration Depository (IARD)
The online system operated by FINRA on behalf of the SEC and states for filing Forms ADV and handling adviser registrations.
1.11 Investment Adviser Representative (IAR)
Individual who provides investment advice on behalf of the firm for compensation as described in Form ADV. IARs do not refer to themselves as a “RIA.”
1.12 National Futures Association (NFA)
Industry-wide SRO for futures and derivatives intermediaries. ECIC is not an NFA member.
1.13 North American Securities Administrators Association (NASAA)
Association of state and provincial securities regulators that sets model rules and coordinates multi-state initiatives.
1.14 Registered Investment Adviser (RIA)
An investment advisory firm registered with the SEC or one or more states. In these docs, “RIA” refers to ECIC.
1.15 Securities and Exchange Commission (SEC)
Federal agency that oversees investment advisers, broker-dealers, public companies, and securities markets.
1.16 Security
Any instrument defined as a security under federal or applicable state law (e.g., stocks, bonds, investment contracts, variable annuities). Insurance contracts with fixed payouts and other excluded instruments are not securities.
1.17 Solicitor
Individual or firm compensated by ECIC for introducing prospective advisory clients, subject to written agreement and disclosure requirements.
1.18 Supervised Person
Partner, officer, director, employee, or any person providing advice on behalf of ECIC who is subject to the firm’s supervision and control.
1.19 Utah (State)
Default jurisdiction referenced in policies unless another state is explicitly cited.