Powers of the Administrator (Administrative Procedures)

The Administrator can issue all of the following orders EXCEPT: A. an order suspending registration B. an order denying registration C. a cease and desist order D. a court order of incarceration

A court order of incarceration

Which of the following is/are examples of orders the administrator can offer An order denying registration An order suspending registration An order revoking registration A cease and desist order All of the above

All of the above

Final orders of the Administrator may: A. be appealed to the North American Securities Administrators Association B. be appealed to the appropriate court of law C. be submitted to binding arbitration D. not be appealed

Be appealed to the appropriate court of law

The Administrator of a State determines that a broker-dealer has violated State law by selling unregistered non-exempt securities and issues a cease and desist order. If the broker-dealer continues to offer these securities in the State, then the Administrator may: A. refer the case to the SEC who can issue an injunction B. bring action in Federal Court to request an injunction C. bring action in a court of competent jurisdiction to request an injunction D. refer the case to the local police for arrest and arraignment of the officers and agents of the broker-dealer

Bring action in Federal Court to request an injunction

Federal law says that State law can never supersede Federal law. A former employee of a federal covered adviser reports to the State Administrator that the investment adviser tears up written customer complaints that allege fraud. The State Administrator can: A. do nothing because only Federal law applies B. conduct an audit of the adviser's books and records C. require the adviser to keep additional records than those required by the Investment Advisers Act of 1940 D. imprison the adviser for fraud

Conduct an audit of the adviser's books and records

The Administrator can do all of the following EXCEPT: A. subpoena witnesses within that State B. subpoena witnesses in other States C. issue a cease and desist order to a person in the securities business D. enjoin a person from engaging in the securities business

Enjoin a person from engaging in the securities business

An Investment Adviser is registered in both State A and State B, and has its principal office in State B. State A would be allowed to: I review the Investment Adviser's books and records in State A II review the Investment Adviser's books and records in State B III require advertising and sales literature to be filed in State A IV require advertising and sales literature to be filed in State B A. I and III only B. II and IV only C. I, II and III only D. I, II, III, IV

I II III

If an investment adviser is found to be insolvent, the Administrator has the power to: I issue a cease and desist order, with or without a prior hearing, directing the investment adviser stop dealing with clients II petition the court to issue a permanent injunction against a person from engaging in the investment advisory business III make the showing required to appoint a receiver to protect the assets of customers held in custody of the investment adviser A. I only B. II only C. I and II D. I, II, III

I II III

The Administrator can take which of the following actions? I Coordinate inspections with those conducted by the Securities and Exchange Commission II Inspect a broker-dealer located in another State that does business in the Administrator's State III Require a witness to testify in a hearing, even though the testimony may tend to incriminate that witness IV Suspend the constitutional privilege against self-incrimination available to an individual A. I and III B. II and IV C. I, II, III D. I, II, III, IV

I II III

Which of the following can an administrator do? I Issue an order suspending or revoking a registration II Conduct investigations and subpoena witnesses for these investigations III Issue a cease and desist order.

I II III

Which of the following is the State Administrator is empowered to do, upon discovering a violation of the Uniform Securities Act I. Issue a cease and desist order, with or without a prior hearing II. Seek a permanent injunction (from the appropriate court) against a person from engaging in the brokerage or investment advisory business III. Can make a showing (to a court) so that a receiver is appointed to protect the assets of customers held in custody by the investment adviser.

I II III

Which statements are TRUE about the Administrator's investigation powers? I The Administrator can conduct public investigations II The Administrator can conduct private investigations III The Administrator can conduct in-State investigations IV The Administrator can conduct out-of-State investigations A. I and II only B. I and IV only C. I, II, III, IV D. II and IV

I II III IV

Upon discovering that a violation of the Uniform Securities Act has, or is about to occur, the Administrator is empowered to: I issue a cease and desist order against such person II make a determination based upon findings of fact and conclusions of law III refer the matter to a disciplinary panel for disposition IV bring action in a court of law to enjoin the acts or practices that violate the law A. I and II only B. III and IV only C. I, II, IV D. I, II, III, IV

I II IV

Which of the following statements are TRUE regarding rules and orders of the Administrator under the Uniform Securities Act? I Rules are general in applicability; orders apply to specific cases II Different penalties apply for violations of rules and orders than for violations of the Act's provisions III The Administrator may enter an order prior to conducting a hearing IV The Administrator may make any rule or order relating to the Act A. I and II only B. III and IV only C. I, III and IV D. I, II, III, IV

I III IV

The Administrator can subpoena the records of a broker-dealer or agent: A. only after a violation has occurred B. if he suspects that a violation has occurred C. only if written customer complaints are received by the Administrator D. only if criminal charges are being filed against that person

If he suspects that a violation has occurred

The Administrator is empowered to conduct an investigation: A. only upon the receipt of a complaint B. if it appears that a violation will occur or has occurred C. if the person being investigated is a resident of that State D. if the Securities and Exchange Commission so directs the Administrator

If it appears that a violation will occur or has occurred

The State Administrator is empowered to do all of the following EXCEPT: A. administer oaths B. subpoena witnesses C. conduct investigations D. incarcerate violators

Incarcerate violators

The Administrator of State X receives a complaint from a customer of an Investment Adviser that is registered in State X, claiming that the investment adviser stole funds. The initial response of the Administrator of State X will be to: A. audit the investment adviser B. investigate the complaint C. issue a cease and desist order against the investment adviser D. require that the customer produce evidence supporting the claim

Investigate the complaint

The Administrator is permitted to do all of the following during an investigation EXCEPT: A. subpoena records of a person held in a neighboring State B. subpoena individuals to testify who reside in a neighboring State C. issue a restraining order against a person without obtaining a court order D. issue a cease and desist order against the person that is the subject of the investigation

Issue a cease and desist order against the person that is the subject of the investigation

An Investment Adviser is registered in both State A and State B, and has its principal office in State B. State A would be allowed to do all of the following EXCEPT: A. review the Investment Adviser's books and records in State A B. review the Investment Adviser's books and records in State B C. require advertising and sales literature to be filed in State A D. require advertising and sales literature to be filed in State B

Require advertising and sales literature to be filed in State B

The Administrator is authorized to do all of the following EXCEPT: A. revoke the registration of all agents associated with a broker-dealer when the broker-dealer's registration is revoked B. subpoena the books and records of a broker-dealer after a suspension order is issued C. suspend a registration pending a hearing without stating a reason for the suspension D. obtain an injunction against any person suspected of violating the Act

Suspend a registration pending a hearing without stating a reason for the suspension

Under the Uniform Securities Act, the Administrator has the power to issue an order: A. enjoining an agent from engaging in the securities business B. requiring civil restitution to a person that has been harmed by the actions of the agent C. imposing criminal penalties on the agent for willful violations of the Act D. suspending the registration of the agent

Suspending the registration of the agent

The State Administrator receives a complaint about a Federal Covered adviser which has made a notice filing in the State, alleging that the adviser stole from him. Which statement is TRUE about this? A. The Administrator cannot take action because the adviser is Federal Covered B. The Administrator can investigate the complaint C. The Administrator must refer the complaint to the SEC and tell the client that it is doing so D. The Administrator can rescind the registration of the adviser

The Administrator can investigate the complaint

The Administrator of State Z receives a complaint about an advertisement placed by an investment adviser. The complaint claims the advertisement stated that: "Any investment made with IZZI Advisers would double in 5 years." IZZI Advisers is located in State X and the advertisement was created in State X and distributed in States X and Z. Which statement is TRUE? A. The Administrator of State Z has no jurisdiction because the adviser is located in State X B. The Administrator of State Z will refer the complaint to the Administrator of State X C. The Administrator of State Z will investigate the complaint D. The Administrator of State Z will enjoin IZZI Advisers from the publication of future advertisements in the State Z

The administrator of State Z will investigate the complaint

An investment adviser representative who is both located and registered in New York State has clients in Florida. The State Administrator of Florida, located in Tallahassee, has subpoenaed the representative to testify in Tallahassee. The representative tells her manager about this and the manager tells her to ignore it, because she is located in New York and only New York can issue a subpoena. Which statement is TRUE? A. The agent must comply with the subpoena and show up in Tallahassee on the date so ordered B. The manager is correct and the agent may disregard the subpoena C. The agent can petition the Administrator of the State of New York to void the subpoena D. The agent must resign her registration with the State of Florida in order to disregard the subpoena

The agent must comply with the subpoena and show up in Tallahassee on the date so ordered

If a person disagrees with a final order of the Administrator, which statement is TRUE? A. The person may petition the court within 30 days of the order B. The person may petition the court within 60 days of the order C. The person may petition the court within 90 days of the order D. No petitioning is allowed as the Administrator's ruling is final

The person may petition the court within 60 days of the order

True or False: A state administrator from State A is allowed to review the books of investment advisers located inside and outside the state

True

True or False: If the administrator receives a compliant regarding an investment adviser advertising from another state, the administrator still needs to investigate the matter, even though the investment adviser is from another state

True

True or False: Only a court of law can enjoin a person from being in the securities business

True

True or False: The administrator can only issue orders

True

True or False: There is no requirement that records can be subpoenaed only if written customer complaints are received by the Administrator or if criminal charges are filed.

True

True or False: When the state administrator discovers a violation of the Uniform Securities Act, and decides to take action, an opportunity for a hearing must be provided to the investment adviser.

True