Series 66 - USA
ID #: 22818 According to the Uniform Securities Act, how would a firm that engages in performing securities transactions for others or for its own accounts be classified? [A] A Banking Institution [B] An Investment Adviser (IA) [C] A Broker-Dealer [D] The Agent of a Broker-Dealer
C] A Broker-Dealer
ID #: 22214 If an agent mixed customer's funds with his own funds, he is said to be: [A] Hypothecating. [B] Arbitraging. [C] Commingling. [D] Churning.
C] Commingling
ID #: 22165 According to the Uniform Securities Act, an advisory firm that re-organizes mid-year may file an application to register a successor firm [A] only if that successor firm has existed for over one year. [B] only if the successor firm will have been in existence for the year to date. [C] whether or not the successor firm has existed for a full year. [D] only if the successor firm exists for the remaining portion of the year and a three full years following.
C] whether or not the successor firm has existed for a full year.
ID #: 22757 The term agent, according to the Uniform Securities Act, would include all of the following people EXCEPT [A] one who effects transactions of registered securities with clients who are members of the public. [B] one who works for a broker-dealer involved in selling securities that have been listed on a securities exchange. [C] one who represents a broker-dealer and performs securities transactions where no transaction-based fees are charged or paid. [D] one who represents an issuing body in effecting transactions that are exempt
D] one who represents an issuing body in effecting transactions that are exempt
ID #: 21279 According to the Uniform Securities Act, if the Administrator believes that there has been a violation of the Act, the Administrator can: Revoke the registration of an investment advisor in the State. Bar an investment advisor from operating within that State. Require the posting of a substantial surety bond to ensure the investment advisor remains in business in that State. [A] I and II [B] II and III [C] I only [D] I, II, III
A] I and II
ID #: 22303 According to the Uniform Securities Act, a security which is exempt from the registration requirements is also exempt from the requirements for filing of advertising and sales literature. antifraud provisions. civil liabilities provisions. [A] I only [B] I and III only [C] II and III only [D] I, II, and III
A] I only
ID #: 21643 Under the Uniform Securities Act, how much notice is the Administrator required to give an adviser prior to examining the adviser's books and records? [A] None [B] 48 hours [C] 5 business days [D] 30 days
A] None
ID #: 23060 To qualify for registration by coordination under the Uniform Securities Act, a registration statement must also be filed with the SEC under the [A] Securities Act of 1933 [B] Securities Exchange Act of 1934 [C] Investment Company Act of 1940 [D] Investment Advisors Act of 1940
A] Securities Act of 1933
ID #: 22157 According to the Uniform Securities Act, which of the following is not excluded in the definition of an "Investment Advisor"? [A] A publisher of a general circulation newspaper [B] A person who receives compensation to give advice relating only to securities issued by a bank. [C] A bank, savings institution, or trust company. [D] A lawyer whose advice is solely incidental to the practice of his profession
B] A person who receives compensation to give advice relating only to securities issued by a bank
ID #: 22181 Under the Uniform Securities Act, an exempt security is exempt from which of the following: registration requirements anti-fraud provisions requirements for filing on advertising [A] I only [B] I and III [C] II and III [D] All
B] I and III
ID #: 22123 Anyone who violates any provision of the Uniform Securities Act may be subject to which of the following? liability to the purchase for the amount paid plus interest a fine of $10,000 imprisonment for not more than three years [A] I only [B] I, III [C] II, III [D] I, II, III
B] I, III
ID #: 22137 Which of the following are included in the definition of an "Investment Advisor" under the Uniform Securities Act: a bank which for compensation advises others as to the value of securities a person who for compensation engages in the business of advising others as to the value of securities a broker/dealer who for no special compensation engages in the business of advising others through publications as to the value of securities a person who for compensation and as part of regular business issues a report and recommendations concerning securities to each client [A] I, II [B] II, IV [C] I, III, IV [D] II, III, IV
B] II, IV
ID #: 22170 According to the Uniform Securities Act, the powers of the Administrator in dealing with violations of the Act include: Arresting suspects where there is probable cause. Publishing information concerning violations. Requiring persons to testify. [A] I, II [B] I, III [C] II, III [D] I, II, III
C] II, III
ID #: 23170 According to the Uniform Securities Act, a corporation would not be an investment advisor if it: [A] was located outside the state in which the advice was rendered and only charged a fee periodically. [B] charges less than $600 per year in advisory fees. [C] gives advice exclusively on fixed annuity contracts. [D] gives advice exclusively on registered mutual funds.
C] gives advice exclusively on fixed annuity contracts
ID #: 50331 According to the Uniform Securities Act and the Securities Exchange Act of 1934, which of the following would not cause statutory disqualification from association with a FINRA member: [A] expulsion from a commodities exchange [B] association with another person who is subject to statutory disqualification [C] having less than 6 months' experience in the securities business [D] be prohibited by a state court injunction from acting as an investment advisor
C] having less than 6 months' experience in the securities business
ID #: 22060 According to the Uniform Securities Act, an administrator may, by order, deny, suspend, or revoke a registration for which of the situations: An agent has been convicted within the past 10 years of a misdemeanor involving a security. An agent has willfully failed to comply with provisions of the Act. An investment advisor has engaged in unethical practices regarding securities investments. A broker/dealer has been convicted of a felony. [A] I, IV [B] II, III [C] I, II, IV [D] All
D] All
ID #: 22806 Often, the filing of sales literature, that is to be distributed to the clients of an investment adviser, is required by Administrators, according to the Uniform Securities Act, for which security or securities transaction? (In other words, the state Administrator may require the sales literature of which of the following securities to be filed?) [A] For-profit corporations issuing securities that will not be listed on any exchange. [B] Underwriter transactions with issuers [C] Investment company purchases of stock [D] State government guaranteed bonds
[A] For-profit corporations issuing securities that will not be listed on any exchange
ID #: 21412 An investment advisor headquartered in State A wishes to solicit customers in State B. Which statements are true? If the investment advisor has an office in State B, it must register in State B. If the investment advisor has an office in State B, it need not register in State B. If the investment advisor has no office in State B, it must register in State B. If the investment advisor has no office in State B, it need not register in State B. [A] I and III [B] II and IV [C] I and IV [D] II and III
[A] I and III
ID #: 22900 Which of the following statements is true with regards to the power of an Administrator to take action when there are violations of the Uniform Securities Act? [A] Officers may be appointed by the Administrator to conduct investigations [B] The Administrator must get a court order in order to subpoena witnesses [C] Investigations may not be conducted outside the state [D] Information concerning violations must be kept confidential
[A] Officers may be appointed by the Administrator to conduct investigations
ID #: 23152 Regulated by the Uniform Securities Act, which of the following is considered a federally covered security [A] State bonds in a given state [B] A security listed on the NYSE [C] A futures contract [D] Securities which are issued by non-profit organizations
[B] A security listed on the NYSE
ID #: 22196 The purpose of the Uniform Securities Act is to: [A] Protect investors from financial loss. [B] Protect investors from salesmen. [C] Protect investors from fraud. [D] All of the above.
[C] Protect investors from fraud.
ID #: 22887 Which of the following transactions are considered to be a "sale" under the Securities Act of 1933 and/or the Uniform Securities Act? A child receives 3,000 shares of stock in trust from a parent An investor converts a bond into stock A car buyer receives one share of the automotive company stock with the purchase of a new car [A] I only [B] III only [C] I and III only [D] I, II, and III
B] III only
ID #: 22061 According to the Uniform Securities Act, which of the following would be considered an exempt transaction: [A] the sale of mutual fund shares by an issuer to an individual for which the issuer receives a commission [B] the purchase of securities from an issuer by an unregistered broker/dealer for its own account [C] the sale of a real estate limited partnership interest by a registered broker to a public customer [D] the purchase of restricted securities by an executive at the firm.
B] the purchase of securities from an issuer by an unregistered broker/dealer for its own account
ID #: 22054 Under the Uniform Securities Act, a registration filed by qualification becomes effective: [A] 60 days after the filing of all required information to the administrator. [B] when the administrator so orders. [C] 7 business days after the offering has been filed with the administrator. [D] when such registration statement becomes effective with the SEC.
B] when the administrator so orders
ID #: 22158 According to the Uniform Securities Act, the term "Investment Advisor" applies to which of the following? [A] A publisher of a newsletter containing general stock market analysis [B] A savings institution which advises customers regarding the value of securities [C] An attorney who, for additional compensation, engages in the business of advising others regarding the value of securities [D] A broker/dealer firm which advises customers on buying and selling securities without receiving compensation beyond its commissions
C] An attorney who, for additional compensation, engages in the business of advising others regarding the value of securities
ID #: 42203 Under the Uniform Securities Act, if an investment advisor representative wishes to offer advisory services to clients of a large broker/dealer in a neighboring State: [A] The investment advisor must be registered in the neighboring State [B] The investment advisor representative must be registered in the neighboring State. [C] Both the investment advisor and the investment advisor representative must be registered in the neighboring State. [D] Neither the investment advisor nor the investment advisor representative must be registered in the neighboring State.
C] Both the investment advisor and the investment advisor representative must be registered in the neighboring State
ID #: 22945 Which of the following statements are TRUE about registered IAs with a principal place of business in a state according the Uniform Securities Act? They may be required to file financial reports with the Administrator They shall maintain certain records as required by the Administrator They shall schedule an annual examination of their books and records with the Administrator They shall update their registration (Form ADV) promptly if it becomes materially inaccurate. [A] I and II only [B] II and IV only [C] I, II, and IV only [D] I, II, III, and IV
C] I, II, and IV only
ID #: 22335 Regulated by the Uniform Securities Act, which of the following responses would have to be registered by qualification? XYZ Corporation is one year old. A primary offering of its stock will be offered in all states at the same time. The RDC Corporation, formed two years ago, originally made an offering of its stock in several states and now is hoping to make a new offering of stock in another state. SHZ Incorporated plans to offer its stock in one state and therefore will not file a federal registration statement. [A] III [B] I and II [C] II and III [D] I, II and III
C] II and III
ID #: 22333 Of the following statements, which are true regarding investigations conducted by the Administrator under the Uniform Securities Act? Information regarding violations must be kept confidential. Investigations may be conducted across state lines The Administrator may obtain a court order to have a receiver appointed over a violator's assets. [A] I and II only [B] I and III only [C] II and III only [D] I, II, and III
C] II and III only
ID #: 22079 Which of the following are true under the Uniform Securities Act? [A] Any broker/dealer who gives investment advice is considered an investment advisor even though such advice is incidental to the conduct of his business and he receives no special consideration. [B] A publisher of a financial magazine with a paid circulation is considered to be an investment advisor. [C] Lawyers, teachers, engineers and accountants who perform advisory services incidental to the practice of his profession is not considered to come within the definition of the investment advisor. [D] The term investment advisor includes banks.
C] Lawyers, teachers, engineers and accountants who perform advisory services incidental to the practice of his profession is not considered to come within the definition of the investment advisor
ID #: 43055 TUV Broker/Dealer Inc. has offices in State A and State B. Representatives of the Administrator in either state may examine the TUV's records only if [A] There is a subpoena for the records [B] TUV Broker/Dealer Inc. has given approval [C] The Administrator has deemed such an examination necessary [D] The representatives have coordinated with the SEC regarding the examination
C] The Administrator has deemed such an examination necessary
ID #: 48559 Investment Advisors are required to maintain books and records as required under the Uniform Securities Act. Which of the following is NOT correct with regards to the Administrator's authority over the books and records of an IA? [A] The State Securities Administrator may indicate the types of books and records that are required to be kept by the Investment Adviser in their principal place of business [B] The State Securities Administrator is allowed to inspect the books and records of any Investment Adviser within or outside of their state [C] The State Securities Administrator may indicate the types of books and records required to be kept by an Investment Adviser which is registered with the SEC [D] The State Securities Administrator may indicate time periods for preservation of books and records of Investment Advisers having their principal place of business in the state
C] The State Securities Administrator may indicate the types of books and records required to be kept by an Investment Adviser which is registered with the SEC
ID #: 22846 Which of the answers is defined by the following? A firm that, for the accounts of others as well as for its own accounts, effects securities transactions. [A] This definition describes a bank. [B] This definition describes an investment adviser. [C] This definition describes a broker/dealer. [D] This definition describes an agent of a broker/dealer.
C] This definition describes a broker/dealer
ID #: 23174 According to the Uniform Securities Act, which of the following is considered to be an exempt security? [A] a sale of securities by an issuer to a syndicate member [B] an unsolicited purchase of common stock by a charitable organization [C] common stock listed on the American Stock Exchange [D] an unsolicited purchase of common stock through a registered broker/dealer
C] common stock listed on the American Stock Exchange
ID #: 22242 Under the Uniform Securities Act, an agent must disclose personal knowledge concerning a material public fact about an issuer to a customer in connection with the sale of an issue: [A] If the investor is not employed by the issuer in such a position as to have knowledge of material public facts. [B] Whether or not the broker/dealer with whom the agent is registered permits the agent to discuss the material fact. [C] If the fact that such disclosure would make other statements made by the agent misleading under the circumstances. [D] All of the above.
D] All of the above.
ID #: 38219 Isolated non-issuer transactions are exempt from the registration provisions of the Uniform Securities Act if they are effected: [A] Only by a broker/dealer [B] Only by a stock exchange [C] Only by a registered agent [D] By a person owning the securities to an unregistered broker/dealer
D] By a person owning the securities to an unregistered broker/dealer
ID #: 38291 Under the Uniform Securities Act, which of the following actions may be taken against a registered investment advisor, broker dealer or agent who has engaged in unethical business practices: The person's registration may be revoked. The person may be barred from employment in the securities industry. The person may be required to maintain a bond as a condition of continuing to be registered. [A] I, II [B] I and III [C] II and III [D] I, II and III
D] I, II and III
ID #: 21224 According to the Uniform Securities Act, registration is required of investment advisors who are directing advice regarding which of the following securities: stock of corporation listed on the NYSE bonds issued and guaranteed by a state investment contracts issued in connection with an employee stock purchase plan [A] II [B] I, II [C] I, III [D] I, II, III
D] I, II, III
ID #: 22352 Violations of the Uniform Securities Act may result in Having a receiver appointed over an adviser's assets. Limitations on the adviser's business activities. A $5,000 fine. [A] I only [B] II and III only [C] II only [D] I, II, III
D] I, II, III
ID #: 22866 Which of the following securities are exempt from registration under the Uniform Securities Act? Securities issued by: The U.S. government Nonprofit charitable corporations Federal savings and loan associations Credit unions supervised by the state [A] I only [B] I and II only [C] I, II, and III only [D] I, II, III, and IV
D] I, II, III, and IV
ID #: 22211 Agents who violate the Uniform Securities Act are subject to which of the following penalties? Criminal penalties. Civil penalties (civil liabilities). Suspension or revocation of their license. [A] I [B] II [C] III [D] I, II, and III
D] I, II, and III
ID #: 22072 According to the provisions of the Uniform Securities Act, if a customer discloses material inside information to an agent about a corporation, the agent should do which of the following? disclose the information immediately notify the firm's trading desk of the information disclosed not disclose the information to anyone execute no securities transactions based upon the information disclosed [A] I, II [B] I, IV [C] II, IV [D] III, IV
D] III, IV
ID #: 21622 Which of the following is not considered an offer or a sale according to the Uniform Securities Act? [A] A contract of sale for a security [B] A gift of assessable stock [C] The sale of a warrant [D] Negotiations for a merger
D] Negotiations for a merger
ID #: 22295 Under the Uniform Securities Act, which of the following would NOT be an offer or a sale? [A] A contract of sale for a security [B] A gift of assessable stock [C] The sale of a warrant [D] Negotiations for a merger
D] Negotiations for a merger
ID #: 21462 According to the Uniform Securities Act, the amount of surety bonding that must be posted to be registered as an investment advisor: [A] Is set at $5,000. [B] Is set at $10.000. [C] Is set at $25,000. [D] Varies from State to State.
D] Varies from State to State
ID #: 22777 According to the Uniform Securities Act, all of the following persons are investment adviser representatives (IARs) EXCEPT [A] The investment adviser's (IA's) CFO, who does not determine any investment strategies, does not manage client accounts, and does not supervise any employees. [B] An non-employee solicitor who is paid to solicit clients only for the investment adviser (IA). [C] One of the partners of the company who does not have any direct participation in the management of client accounts, but who regularly meets with employees and helps them in determining the investment recommendations that they make to their clients. [D] One of the compliance officers of the company who has nothing to do with the determination of investment strategies or directly managing customer accounts, but whose main responsibility is the supervision of all of the company's IARs.
[A] The investment adviser's (IA's) CFO, who does not determine any investment strategies, does not manage client accounts, and does not supervise any employees.
ID #: 22288 The provisions of the Uniform Securities Act gives the Administrator the power to examine an investment advisor's business records [A] at any time, even across state lines. [B] only after obtaining a court order. [C] only after providing one week's advance notice to the advisor. [D] only after providing one week's advance notice or if necessary for the protection of investors, after obtaining a court order to make an unannounced examination.
[A] at any time, even across state lines
ID #: 49940 When considering the state securities administrator's authority with regard to the filing of advertising on a federal covered security by a broker-dealer, which of the following statements is correct according to the Uniform Securities Act? The state securities Administrator [A] is not authorized to require the filing of such advertising [B] must approve all such advertising by the broker-dealer prior to use [C] must be notified of the material at the time that it is used by the broker-dealer [D] must approve all such advertising by the broker-dealer at the time that is used
[A] is not authorized to require the filing of such advertising
ID #: 49914 Which of the following must be maintained by an investment advisor in accordance with the recordkeeping regulations of the Uniform Securities Act? [A] The originals of all stock certificates and stock powers signed by customers [B] A list of those who participated/attended a seminar put on by the IA for informational purposes [C] The originals and a copy of all advertisements ever distributed by the IA firm [D] Copies of all stock certificates and stock powers signed by customers
[B] A list of those who participated/attended a seminar put on by the IA for informational purposes
ID #: 22743 When there is a change of ownership by a registrant, the registrant must do which of the following under the Uniform Securities Act? [A] Contact the Administrator and promptly file an entirely new application. [B] Contact the Administrator and promptly go about filing a correcting amendment to the Administrator. [C] By maintaining books and records that reflect the change, the registrant provides notice to the Administrator. [D] At the time of renewal of registration, the registrant must file a correcting amendment with the Administrator.
[B] Contact the Administrator and promptly go about filing a correcting amendment to the Administrator.
ID #: 22296 According to the Uniform Securities Act, broker/dealers may be classed as investment advisors if they provide investment advice for which they are paid a fee separate from any commissions they earn on securities transactions. employ agents to represent them. unlike investment advisors, generally need not be registered in each state in which they do business. [A] II only [B] I and II only [C] I and III only [D] I, II, and III
[B] I and II only
ID #: 22154 According to the Uniform Securities Act, which two of the following are true relating to the qualifications of investment advisors: An investment advisor applicant is not qualified to act as investment advisor. The administrator may enter an order against the applicant based on such lack of qualifications. If an investment advisor applicant has acquired sufficient knowledge, training, and education, the administrator may still deny an application based on lack of experience. If an investment advisor applicant has five years or more full time experience as an agent or broker/dealer, the applicant is automatically qualified to act as an investment advisor. The administrator may subject an investment advisor applicant to an oral examination in order to determine whether the applicant is qualified. [A] I, III [B] I, IV [C] II, III [D] III, IV
[B] I, IV
ID #: 42205 Under the Uniform Securities Act, certain individuals automatically become registered when an investment advisor becomes registered. Which of the following are included? Any shareholders who are investment adviser representatives of the investment adviser. Directors, officers, partners, or persons who occupy similar positions and are investment adviser representatives. Any persons who are employed to perform clerical services on client accounts for the investment adviser. Any persons that are employed as investment adviser representatives by the investment adviser. [A] I [B] II [C] I and III [D] I, II, III, and IV
[B] II
ID #: 21681 According to the Uniform Securities Act, the Administrator is required to determine which of the following before taking disciplinary action against an adviser's registration? [A] That the adviser has acted with malice. [B] That the order is in the public interest. [C] That the adviser has ignored previous warnings. [D] That the adviser has done harm to the public.
[B] That the order is in the public interest.
ID #: 49890 Each of the following would be adequate cause for the revocation of an IA's registration by a State Administrator EXCEPT: [A] Five years go, the IA was convicted of a misdemeanor for securities fraud. [B] The IA went through a personal bankruptcy four years prior. [C] It is revealed that there was a recent violation of CFTC and Commodities Exchange Act regulations by the IA. [D] It is revealed that there was a recent violation of the Investment Company Act by the IA
[B] The IA went through a personal bankruptcy four years prior
ID #: 21672 According to the Uniform Securities Act, all of the following are required for a preorganization subscription to be an exempt transaction EXCEPT [A] There may be no more than 10 subscribers. [B] The offer of the security may not be advertised. [C] No commission may be paid to anyone for soliciting potential subscribers. [D] No payment may be made by any subscriber.
[B] The offer of the security may not be advertised
ID #: 22068 According to the Uniform Securities Act, when an application for registration as an agent is pending, the person may do which of the following? [A] offer mutual funds but not accept commissions [B] sell fixed annuity insurance contracts [C] sell securities when such orders are unsolicited [D] sell securities which are exempt from registration
[B] sell fixed annuity insurance contracts
ID #: 48558 When filing an application to become an Investment Adviser, which of the following items is NOT required under the Uniform Securities Act? [A] The IA's proposed method of doing business [B] The qualifications of the IA's partners, officers, and directors [C] A bond which surpasses the requirements of the IA's principal office's requirements [D] A Consent to Service of Process
[C] A bond which surpasses the requirements of the IA's principal office's requirements
ID #: 21281 If a violation of the Uniform Securities Act occurs, the Administrator has the ability to: Seek a permanent injunction. Appoint a receiver to protect the assets of customers held in custody of the investment advisor. Arrest individuals for willful violations. [A] I only [B] II only [C] I and II [D] I, II, III
[C] I and II
ID #: 22121 Assume that Mr. Smith is solely in the business of advising others regarding the value of listed securities and does not handle transactions in securities. With which of the following provisions of the Uniform Securities Act must Mr. Smith comply? broker/dealer registration provisions investment advisor registration provisions anti-fraud provisions [A] III only [B] I, II [C] II, III [D] I, II, III
[C] II, III
ID #: 22744 An agent has solicited and sold an unregistered security. According to the Uniform Securities Act, the agent can avoid civil liability in this instance if [A] the agent contacts the attorney of the customer and has the attorney approve the transaction. [B] the agent can, at the time the sale is made, get the customer who purchased the unregistered security to waive the compliance issue. [C] the agent offers to refund the consideration paid plus required interest, in writing, before the purchaser files suit. [D] the agent convinces the customer to say that the solicited transaction was, in fact, unsolicited.
[C] the agent offers to refund the consideration paid plus required interest, in writing, before the purchaser files suit.
ID #: 22254 Which of the following are unethical business practices for an agent to engage in? Commingling customer funds with the agent's funds. Misrepresenting to a customer the status of his account. Giving inaccurate market quotations to a customer. Guaranteeing a profit in a customer's account. [A] I and II [B] III and IV [C] I, II and IV [D] All
[D] All
ID #: 22804 A non-issuer transaction, according to the Uniform Securities Act, is best described by which of the following? [A] Nobody other than the issuer has purchased the security. [B] Anyone other than the issuer has purchased the security. [C] A private offering is made by a corporation and the offering is exempt. [D] Any sale in which the issuer does not directly or indirectly benefit from the transaction.
[D] Any sale in which the issuer does not directly or indirectly benefit from the transaction
ID #: 21284 The Administrator is empowered to revoke the registration of an investment advisor if: The investment advisor has ceased operating as a business in the State. The investment advisor has been judged to be mentally incompetent. The investment advisor has relocated the advisory firm and has not notified the Administrator of the new business location. [A] I only [B] III only [C] I and II [D] I, II, III
[D] I, II, III
ID #: 22159 According to the Uniform Securities Act, which of the following are investment advisor representatives: A partner in an investment advisory firm who helps decide what advice will be given to clients. A vice president of the investment advisory firm in charge of supervising the people who manage clients accounts. An employee who solicits clients for an investment advisory firm. [A] I, II [B] I, III [C] II, III [D] I, II, III
[D] I, II, III
ID #: 21634 Of the following, which are prohibited by the antifraud provisions of the Uniform Securities Act? A misstated material fact The omittance of a fact important to understanding any statements that are made A false sales presentation which does not result in sales [A] I only [B] I and II [C] I and III [D] I, II, and III
[D] I, II, and III
ID #: 22282 Which of the following is/are prohibited by the antifraud provisions of the Uniform Securities Act? A misstatement of a material fact An omission of a fact important to understanding other statements that are made A deceptive sales presentation which does not result in a sale [A] I only [B] I and II only [C] I and III only [D] I, II, and III
[D] I, II, and III
ID #: 23103 A solicitor receives a call from an Investment Adviser (IA) who wants the non-employee to conduct solicitation activities for the IA. What are the obligations regarding registration according to the Uniform Securities Act? [A] Since the solicitor is not a registered investment adviser and is not qualified to be a investment adviser representative, the solicitor does not need to register. [B] Every state requires the solicitor to register whether or not the solicitor conducts business in that state. [C] The solicitor does not need to register because the solicitor does not work for the investment adviser company. [D] It is required that the solicitor register in the states in which it conducts its business
[D] It is required that the solicitor register in the states in which it conducts its business.
ID #: 21403 Under the provisions of the Uniform Securities Act, to register as an Investment Advisor Representative, all of the following may be required EXCEPT: [A] Posting of a surety bond. [B] Filing of a consent to service of process. [C] Passing of a qualification examination. [D] Posting of minimum net capital
[D] Posting of minimum net capital
ID #: 22234 A broker/dealer, with its place of business being in New York, places an ad in the Wall Street Journal. The Journal is freely circulated in all fifty states. Which of the following is true? [A] An offer is being made in New York. [B] An offer is being made in every state but New York. [C] An offer is being made in all fifty states. [D] No offer is being made.
A] An offer is being made in New York.
ID #: 22730 Disclosure to clients must be made to which of the following clients when an agent of a broker-dealer is also an investment adviser representative (IAR)? [A] Disclosure must be made in situations where, based on advice from the IAR, a client who purchases a security will also pay commissions on the execution of trades to the broker-dealer who is also the IA. [B] Disclosure by means of a financial statement must be made to the client regarding the IAR's financial condition. [C] Outside of investment advisory services, disclosure must be made as to the dollar amount of commissions received from other investment activities by the IAR. [D] Disclosure must be made by the IAR if compensation agreements with other clients differ significantly from the standard practice.
A] Disclosure must be made in situations where, based on advice from the IAR, a client who purchases a security will also pay commissions on the execution of trades to the broker-dealer who is also the IA
ID #: 22353 An Investment Advisor Representative has a duty to do all of the following except: [A] Ensure that client accounts appreciate in value [B] Make suitable recommendations to clients [C] Place the client's interest before the advisor's interests [D] Disclose any and all conflicts of interest
A] Ensure that client accounts appreciate in value
ID #: 22820 Agent is best defined by which of the following individuals? [A] One representing a broker-dealer, effecting sales or purchases for that broker-dealer. [B] One who solely performs transactions of covered securities. [C] One who solely performs transactions in securities that are exempt. [D] One who makes a business out of dealing with issuers in securities that are covered
A] One representing a broker-dealer, effecting sales or purchases for that broker-dealer
ID #: 21466 According to the Uniform Securities Act, an investment advisor must notify the Administrator of the termination of an agent's employment: [A] Promptly [B] Within 30 days of termination. [C] When the renewal registration is filed in the State. [D] Only if the employee will not associate with another advisory firm.
A] Promptly
ID #: 22342 All of the following are exempt securities under the Uniform Securities Act except [A] Stock issued by an investment advisory firm organized as a corporation and registered in the state [B] Stock issued by an insurance company headquartered in the U.S. and authorized to do business in the state [C] Bonds issued by a non-profit reformatory institution [D] Stock listed on the Midwest Stock Exchange
A] Stock issued by an investment advisory firm organized as a corporation and registered in the state
ID #: 19235 According to the Uniform Securities Act, all of the following are true of registration of securities by filing EXCEPT: [A] The total net worth of the issuer must be $2 million and the issuer also must have achieved net income from operations before allowances for a minimum of 3 of the last 4 preceding fiscal years. [B] The issuer must have a total net worth of $4 million or more. [C] At least one class of securities must be carried by the issuer and held by 500 people or more. [D] For a minimum of 36 months, the issuer must be actively engaged in business operations within the United States.
A] The total net worth of the issuer must be $2 million and the issuer also must have achieved net income from operations before allowances for a minimum of 3 of the last 4 preceding fiscal years
ID #: 22115 According to the Uniform Securities Act a buyer of securities in a private placement offering receives: [A] Unregistered securities [B] Registered securities [C] A letter representing the security [D] Securities which can be readily sold
A] Unregistered securities
ID #: 23022 Registration as an IA is required under the USA for all IAs who are paid to render advice regarding all of the following except: [A] fixed annuity contracts [B] state-issued and state-guaranteed bonds [C] a company's NYSE-listed stocks [D] an employee purchase plan's investment contracts
A] fixed annuity contracts
ID #: 42213 According to the Uniform Securities Act, which of the following is NOT an exempt security? [A] A bond which is issued by a state credit union [B] A stock that is issued by a local profit-making manufacturing corporation and is not listed on any exchange [C] A bond backed by Canada [D] A stock issued by a utility regulated by the Interstate Commerce Commission
B] A stock that is issued by a local profit-making manufacturing corporation and is not listed on any exchange
ID #: 43229 State Administrators have certain authority regarding the establishment of requirements related to net capital and registration of broker-dealers. Which best describes this authority? [A] Administrators must establish minimum capital requirements that are equal to those of the SEC. [B] Administrators can act in the public interest, establishing appropriate minimum net capital requirements for broker-dealers. [C] Administrators can only enforce the minimum net capital requirements of the SEC. [D] Administrators have no authority to establish or enforce net capital requirements of broker-dealers.
B] Administrators can act in the public interest, establishing appropriate minimum net capital requirements for broker-dealers
ID #: 22999 An administrator may deny or revoke an exemption from registration under the USA for which of the following types of securities? Municipal Bonds Stock issued by a bank that is headquatered in another state A security issued by a non-profit corporation that has been organized for the exclusive purpose of athletics [A] I only [B] III only [C] I and III only [D] I, II, and III
B] III only
ID #: 48485 Coordination is used to register securities with a state and an agent is talking to a prospective buyer about these securities. The Uniform Securities Act permits which of the following statements regarding this situation? [A] The agent may state that by accepting the registration by coordination, the Administrator stands behind the issue of securities. [B] The agent may state that no assessment or judgment has been made by the Administrator with regards to the viability of the company or security. [C] The agent may state that by accepting the registration by coordination, the Administrator believes that all aspects of the company and security are in order. [D] The agent may state that there were no false or inaccurate statements included in the registration, otherwise the Administrator would have denied registration.
B] The agent may state that no assessment or judgment has been made by the Administrator with regards to the viability of the company or security.
ID #: 23090 Which of the following statements is true with regard to an Administrator's authority under the Uniform Securities Act to examine the books and records of a registrant? [A] They may be examined with prior notice only. [B] They may be examined at anytime in or out of the state. [C] They may be examined at anytime, but only in the state. [D] They may not be examined without a court order.
B] They may be examined at anytime in or out of the state
ID #: 22151 According to the Uniform Securities Act, all the following must be included in a written advisory contract except: [A] that the investment advisor will not receive compensation based on the profit or loss in the account [B] that the investment advisor has been qualified by examination, experience or training to be an investment advisor [C] that the investment advisor will not assign the contract without the client's consent [D] that the investment advisor of a partnership will notify the client within a reasonable period of time of any change in the membership of the partnership
B] that the investment advisor has been qualified by examination, experience or training to be an investment advisor
ID #: 22192 A security listed on the NYSE would be a(n): [A] Exempt transaction. [B] Security which must be registered in every state. [C] Exempt security. [D] None of the above
C] Exempt security
ID #: 22297 Which of the following is/are true regarding the antifraud provisions of the Uniform Securities Act? In a securities transaction, it is not necessary for a deceitful presentation to result in a sale for a violation to have occurred. Governmental bodies or political subdivisions are exempt from the antifraud provisions of the Act. Fraud is broadly defined and includes not only deceit but also a failure to make adequate disclosure. [A] III only [B] I and II only [C] I and III only [D] I, II, and III
C] I and III only
ID #: 42183 Which of the following investment advisers may, by law, transact business in a state according to the Uniform Securities Act? A registered adviser An investment adviser, who is not registered in a State or with the SEC, whose advice relates solely to exempt securities An adviser registered in State X who has no place of business in State Y and directs business communications to 5 or fewer clients in State Y over the past 12 months. [A] I only [B] I and II only [C] I and III only [D] I, II, and III
C] I and III only
ID #: 22243 Under the Uniform Securities Act, an administrator must accept an appropriate cash deposit instead of a surety bond for which of the following? Broker/dealer Investment advisor Agent Issuer [A] I and II [B] III and IV [C] I, II and III [D] I, III and IV
C] I, II and III
ID #: 23151 Under the USA, the sale of interests in limited partnerships to a bank is exempt from: the anti-fraud provisions The registration requirement The filing of advertisements requirement [A] I only [B] II only [C] II and III only [D] I, II, and III
C] II and III only
ID #: 21247 According to the Uniform Securities Act, if the administrator prohibits custody of clients' securities or funds by the investment advisor, which of the following would be unlawful: [A] A client gives an advisor a check to pay the advisory fee. [B] The client gives an advisor cash to pay the advisory fee. [C] A registered broker/dealer has custody of a client's securities. [D] A client delivers a stock certificate to an advisor.
D] A client delivers a stock certificate to an advisor.
ID #: 43019 According to the Uniform Securities Act, which of the following would be considered to be an investment adviser? [A] A college professor who teaches a financial management course at the local college, during which statements are made regarding buying and selling securities. [B] A trust company that handles customer inquiries regarding the value of their securities and is compensated for doing so. [C] A certified CPA who advises his or her clients on matters of insurance for a fee. [D] A freelance print journalist who is compensated for writing articles where advice is rendered regarding specific investment questions from individual investors
D] A freelance print journalist who is compensated for writing articles where advice is rendered regarding specific investment questions from individual investors.
ID #: 22289 Under the provisions of the Uniform Securities Act, disciplinary proceedings generally require the Administrator to provide which of the following? Appropriate prior notice Opportunity for a hearing Written findings of fact and conclusions of law [A] III only [B] I and II only [C] I and III only [D] I, II, and III
D] I, II, and III
ID #: 23039 An IA may be liable for civil damages to a client if: The IA fails to disclose a material fact in soliciting the clients The IA fails to disclose that the IA will sell a recommended security from its own account. The IA fails to reasonably supervise an employee who becomes civilly liable to clients for negligent investment advice. [A] I and II only [B] I and III only [C] II and III only [D] I, II, and III
D] I, II, and III
ID #: 22879 Under the USA, which of the following personnel would be considered an "agent" of a broker-dealer and would therefore be required to be registered as such? [A] A person who accepts orders for limited partnership units as a sales assistant [B] A person who accepts orders for commodity futures contracts as a sales assistant [C] A secretary taking telephone messages from clients to buy and sell securities [D] An officer of a broker/dealer who is not involved in effecting purchases or sales of securities
[A] A person who accepts orders for limited partnership units as a sales assistant
ID #: 22354 An Investment Advisor Representative has a substantial ownership interest in a private investment and also recommends the same investment to clients without disclosing his ownership interest. Which of the following statements is true? [A] This is acceptable provided the investment meets the investors investment objectives. [B] This is acceptable if the issuer is aware of the situation. [C] Prudent investor standards do not apply. [D] This is considered to be a conflict of interest.
[D] This is considered to be a conflict of interest.
ID #: 22960 The definition of "broker-dealer" in the Uniform Securities Act would properly apply to: [A] A bank that is state-chartered [B] A company which, as part of business operations, issues securiites [C] a person who is in the business of advising others about securities for compensation [D] a firm that is in the business of effecting securities transaction for other people's accounts
[D] a firm that is in the business of effecting securities transaction for other people's accounts
