August 11th
If the Administrator has summarily suspended an investment adviser representative's registration, the registrant may request a hearing by written request and the hearing will be granted within
15 days
When opening an account at a broker-dealer, if the most recent copy of the firm's fee schedule is not available, NASAA recommends that the client
does not place any assets in the account until it is provided
As appropriate to the scale and complexity of a firm's business, elements of an effective practice framework for managing conflicts of interest include all of the following EXCEPT
ensuring that the firm remains solvent for protection of customers and employees alike
Which of the following statements is TRUE?
An Administrator can summarily suspend a pending registration.
Which of the following would be prohibited practices under state securities law?
Failing to obtain prior written authority for orders from a third party
Which of the following statements relating to termination of registration of a securities professional registered under the USA is TRUE?
Once the withdrawal is effective, the Administrator retains the right to commence an action for a period of one year.
An agent submits a list of recommendations to a customer that includes 5 different securities. The customer chooses to buy a round lot of 1 of the 5 securities recommended (a stock in which the agent's broker-dealer makes a market). The firm, in completing the trade, charges a markup that is larger than normal for a stock transaction. Is this allowable under the Uniform Securities Act?
No, under the circumstances given, it is a prohibited practice to charge a higher than normal markup.
An agent is conducting a seminar open to the public. Under the NASAA Statement of Policy on Dishonest or Unethical Business Practices of Broker-Dealers and Agents, which of the following would be prohibited?
Recommending that the attendees purchase shares of the KAPCO 2020 Target Date Mutual Fund
Under the NASAA Statement of Policy on Dishonest or Unethical Business Practices of Broker-Dealers and Agents, which of the following are required for an agent to lawfully share in the profits of a customer's account?
The customer's written approval The broker-dealer's written approval
The Administrator of a state securities department conducted a hearing regarding misconduct by an investment adviser registered at the state level. The Administrator required the adviser, as well as several clients who had lodged complaints against the adviser, to take a sworn oath that their testimony was true. Does the Administrator have the power to require sworn oaths?
Yes, because the Administrator is empowered to administer oaths as provided in the Uniform Securities Act, as enacted in the Administrator's state of jurisdiction.
Disclosure to the client of a potential conflict of interest is required when
an investment adviser representative intends to sell the client the insurance policy he recommended for his financial plan and receive a commission for doing so recommending a new issue where the major stockholder is the investment adviser's brother
A client is interested in purchasing a thinly traded equity security where, due to the extra effort involved in obtaining the issue, the commission charged will be somewhat higher than normal. The compensation to the broker-dealer must be disclosed
before the order is placed on the trade confirmation
On determining that a registrant or applicant for registration is no longer in existence or has ceased doing business as either an agent or a broker-dealer, the Administrator may
cancel the registration or application
A broker-dealer receives a written complaint from one of its customers. The most appropriate action to take is to
immediately reply to the client in writing
The Administrator may
limit a registrant's functions to that of a broker-dealer if, in the initial application for registration as an investment adviser, the registrant is not qualified to act as an adviser take into consideration that the registrant will work under the supervision of a registered investment adviser or broker-dealer in approving a registration
An applicant for registration as an investment adviser discloses on its application to the Administrator that it plans to use palm readers to help determine which investments are most suitable for their clients. Under the Uniform Securities Act, the Administrator
may only justify denial for reasons listed in the Uniform Securities Act
You are an agent for a fully licensed broker-dealer and one of your clients is the chairman of a drug company who tells you that the government will shortly disapprove a patent for a new drug. According to the Uniform Securities Act, you should
promptly inform your supervisor
If it is in the public interest, under the Uniform Securities Act, an agent's registration may be suspended by the Administrator for all of the following reasons EXCEPT
the agent is accused of violations of the antifraud provisions of the USA
NASAA's Statement of Policy on Dishonest and Unethical Business Practices of Broker-Dealers and Agents would likely consider which of the following to be prohibited activities?
An agent takes an order from the client's attorney without written trading authorization An agent takes an order from the secretary of a nondiscretionary client who is too busy to give the order herself
