Registration and Licensing Standards Study Questions

If an investment adviser is an individual, which of the following items would be included in the computation of adviser's net capital? -Goodwill -Automobile -Accounts receivable -Copyright

Accounts receivable

Administrators can require minimum Net Capital and Net Worth for: -Agents -Broker-Dealers -Investment Adviser Representatives -Issuers

Broker-Dealers

Annual renewal of registration as an agent or an investment adviser in each State is made by filing: I Form U-4 II Form U-6 III within 30 days of the date that renewal statements are sent out IV within 60 days of the date that renewal statements are sent out

I and III

As a condition of registration as an agent or principal of a broker-dealer or investment adviser which of the following statements are TRUE? I An examination may have to be taken by the agent II An examination may have to be taken by the principal III Higher passing grades can be required for principals than for agents

I, II, III

In order to be registered in a State, an agent can be required to: I Pass a qualification exam II Post a surety bond III Submit fingerprints

I, II, III

Which of the following can be required by the Administrator to register as a broker-dealer? I Minimum dollar amount of net capital II Minimum dollar amount of surety bond coverage III Passing a written examination by the firm's officers IV Meeting minimum experience standards

I, II, III

An individual wishes to form a broker-dealer as a sole proprietorship. Which of the following MUST be filed with the State? I Form BD II Consent To Service of Process III Surety Bond IV Filing Fee

I, II, III, IV

The State Administrator, as a condition of registration in the State as an investment adviser, can require which of the following: I An oral examination by the officer of the advisory firm II Publication of an opening announcement in a local newspaper III Posting of a surety bond IV Filing of advertising

I, II, III, IV

Which of the following statements are TRUE regarding registration requirements under the Uniform Securities Act? I Minimum net capital can be required for broker-dealers II Minimum net capital can be required for agents III Surety bond coverage can be required for broker-dealers IV Surety bond coverage can be required for agents

I, III, IV

If an investment adviser finds that its Net Capital is below the minimum requirement, it MUST: I give immediate electronic notice to the Administrator II give notice to the Administrator no later than the next business day III file a report of financial condition with the Administrator no later than the day after notice is given IV file a report of financial condition with the Administrator no later than 10 business days after notice is given

II and III

Which of the following items would be included in the computation of an investment adviser's net capital? I Business reputation II Furniture and fixtures III Automobiles IV Organizational expenses

II and III

Which one of the following items would be included in the computation of an individual investment adviser's net capital? -Copyright owned by the adviser -Franchise right owned by the adviser -Home furnishings owned by the adviser -Securities owned by the adviser

Securities owned by the adviser

Which statement is TRUE regarding the State Administrator's authority to establish net capital standards for broker-dealers? -The Administrator can only establish Net Capital standards that are the same as those set by the SEC -The Administrator cannot establish Net Capital standards for broker-dealers -The Administrator has the power to set Net Capital standards if it is in the public interest -The Administrator can neither establish nor enforce Net Capital requirements for broker-dealers

The Administrator can only establish Net Capital standards that are the same as those set by the SEC

Regarding surety bond coverage required by the Administrator as a condition of registration, which statement is FALSE? -Cash is acceptable as a deposit in lieu of a bond -Securities are acceptable as a deposit in lieu of a bond -The Administrator is given discretion over which securities are acceptable as a bond -The Administrator may disallow the posting of cash and require a policy issued by a licensed insurance company

The Administrator may disallow the posting of cash and require a policy issued by a licensed insurance company

A new broker-dealer has filed a registration application in the State. One of the officers listed in the application suddenly dies and another officer is appointed. This is: -not a material event and no amendment need be filed with the Administrator -a material event that requires a prompt amendment filing with the Administrator -a material event that requires an amendment filing with the Administrator within 30 days of occurrence -an event that only requires filing with the Administrator if the broker-dealer has been formed as a partnership

a material event that requires a prompt amendment filing with the Administrator

Under the provisions of the Uniform Securities Act, the determinant of whether an investment adviser can take custody of client funds is whether the RIA: -is named as the trustee of a client trust account -has taken out a surety bond -has a signed power of attorney -has at least $25 million of assets

has taken out a surety bond

Surety bond coverage can be required by the Administrator as a condition of registration for all of the following EXCEPT: -broker-dealers -investment advisers -agents -issuers

issuers

A Chartered Financial Analyst (CFA) wishing to register in a State as an investment adviser is exempt from: -taking a proficiency examination in the State -filing a registration document Form U-4 in the State -from paying an annual registration fee to the State -all of the above

taking a proficiency examination in the State

The Administrator can be under the obligation to file a U-6 Form if a(n): -written complaint about an investment adviser representative is received from a customer that alleges a felony -oral complaint about an investment adviser representative is received from a customer that alleges a suitability violation -written complaint is received about an investment adviser representative from a whistleblower -oral complaint is received about an investment adviser representative from the representative's spouse

written complaint about an investment adviser representative is received from a customer that alleges a felony

To be registered as a broker-dealer, the Administrator typically requires the posting of a surety bond in the amount of: -$1,000 -$5,000 -$10,000 -$50,000

$10,000

A broker-dealer based in New York has a Net Capital requirement of $100,000. The broker-dealer also has 2 branch offices in New Jersey and 1 branch office in Connecticut. Under Uniform State Law, the Net Capital requirement for this broker-dealer is:

$100,000