CH 5 SERIES 66

A broker-dealer is registered in State W, but its principal, and only place of business, is in State L. Which of the following statements regarding the ability of the Administrator to perform an onsite examination is CORRECT? A) The Administrators of both State L and State W may perform unannounced onsite examinations during normal business hours. B) Because the broker-dealer's principal office is located in State L, only that state's Administrator has the jurisdiction to perform an onsite examination. C) Because the broker-dealer does not have a place of business in State W, it is impossible for the Administrator of that state to perform an onsite examination. D) Neither Administrator would be able to perform an onsite examination without giving 15 days written notice to the broker-dealer.

A

An Administrator has jurisdiction over an offer to sell securities if it is made in a newspaper published out of state A) under no circumstances B) with at least ⅓ of its circulation in the state C) with at least ½ of its circulation in the state D) with at least ⅔ of its circulation in the state

A

One way in which the penalty for a civil infraction differs from that for a criminal one is that in the civil case, the guilty party cannot A) receive a jail sentence B) appeal the verdict C) receive a suspension D) be fined

A

An investment adviser is sued by a client. If the client is successful in the civil proceeding, under the Uniform Securities Act, the client may be awarded A) the money paid for the advice, any losses resulting from the advice, and all costs and attorney's fees B) the money paid for the advice and all costs and attorney's fees C) the money paid for the advice, any losses resulting from the advice plus interest, costs, and attorney's fees, less any revenue gained from the advice D) any losses resulting from the advice plus interest, costs, and attorney's fees

C

Under the USA, an agent may file for a review of an Administrator's revocation order within how many days of revocation? A) 30 days B) 60 days C) 90 days D) 270 days

B

Under the Uniform Securities Act, violations of the act may result in criminal penalties of up to A) $10,000 B) $5,000 C) $50,000 D) $1,000

B

Under which of the following circumstances may an Administrator revoke a state registered investment adviser's registration? A) The adviser has been declared mentally incompetent by a court of jurisdiction. B) The adviser has been convicted of a nonsecurities-related felony. C) The adviser is no longer in business. D) The adviser cannot be located after a reasonable search by the Administrator.

B

Which of the following statements relating to penalties under the USA is CORRECT? A) A seller who notices that a sale was made in violation of the act may offer a right of rescission to the purchaser that must be accepted either 2 years after notice of the violation or 3 years after the sale, whichever comes sooner. B) A purchaser of a security where a violation of the USA occurred may recover the original purchase price plus legal costs and interest, less any earnings already received. C) Unknowing violation of the USA by an agent is cause for imprisonment under the criminal liability provisions of the act. D) Any person aggrieved by an order of the Administrator may request an appeal of the order within 15 days which, in effect, functions as a stay of the order during the appeal period.

B

A properly licensed agent in Illinois, Missouri, and Iowa has a client who moves from Illinois to Michigan on July 1, 2014. On September 1 of that year, the agent sells him 100 shares of a nonexempt security in a nonexempt transaction. On October 1, 2015, the client discovers that the agent's firm never licensed him in Michigan and that the agent is subject to civil liability to the purchaser. The statute of limitations for this sale runs out on A) October 1, 2017 B) October 1, 2018 C) September 1, 2017 D) September 1, 2016

C

A broker-dealer sends an email to all of its clients stating that anyone purchasing at least 100 shares of an IPO that has just become effective will receive, at no additional cost, a bonus of 10 shares of a Nasdaq traded stock. Under the Uniform Securities Act, delivery of this stock to a qualifying client would represent A) a gift B) an offer C) a sale D) a prohibited transaction

C

If an investment adviser representative commits a criminal violation of the Uniform Securities Act, she is subject to legal action for A) the sooner of two years after discovery or three years after the violation B) 3 years after the alleged violation C) 5 years after the alleged violation D) 10 years after the alleged violation

C

John was convicted 5 years ago of failure to pay child support, a misdemeanor in his home state. John would now like to register as an IAR in a neighboring state where that crime is considered a felony. Under the Uniform Securities Act, the Administrator of the neighboring state will A) determine John's status on the basis of the extent to which his child support payments are being paid B) consider granting registration to John, but only if he receives heightened supervision C) consider John to be statutorily disqualified because in this state his crime is a felony D) disregard that conviction when determining John's qualifications for registration

D