Book 4 last
A broker-dealer located in State A makes an offer of securities to a customer whose principal residence is in State B. The customer has temporarily moved to State C and has asked the post office in State B to forward the mail to the customer's address in State C. Which State Administrator(s) has (have) jurisdiction over the offer? I State A II State B III State C A. I only B. I and II only C. I and III only D. II and III only
a
A customer that lives in State A is traveling by air to State C. While he is changing planes in State B, he receives a call on his cell phone from his broker, who solicits him to buy a security. He places the order with his broker and boards his connecting flight to State C. When he returns to his home in State A, he finds the trade confirmation in his mailbox. Which State Administrator(s) has (have) jurisdiction over the transaction? A. State A only B. State B only C. Both State A and B D. States A, B and C
a
A lawsuit filed alleging violations of the Uniform Securities Act: I survives the death of the plaintiff II does not survive the death of the plaintiff III survives the death of the defendant IV does not survive the death of the defendant A. I and III B. I and IV C. II and III D. II and IV
a
A willful violation of the Uniform Securities Act would occur if an agent of a broker-dealer recommends the purchase of a(n): A. non-exempt security to a customer that the agent knows is not registered, however the customer does not buy that security B. security to a customer that the agent believes to be exempt and is not registered, however the agent later discovers that the Administrator has denied the issue's exemption C. exempt security to a customer that the agent knows is not registered and the customer makes a purchase of the recommended security D. non-exempt security to a customer that the agent believes to be registered and the customer does not buy that security
a
All of the following come under the jurisdiction of the State Administrator EXCEPT a: A. television broadcast from a neighboring State, received in that State B. television broadcast from within that State, received in that State C. mailing of sales literature to a customer in a neighboring State D. mailing of sales literature to a customer in that State
a
An agent recommends that a customer purchase an unregistered non-exempt security. This is a violation of which section of the Uniform Securities Act? A. Part I - Fraudulent and Other Prohibited Practices B. Part II - Registration and Notice Filing Procedures For Broker-Dealers, Agents, Investment Advisers and Investment Adviser Representatives C. Part III - Registration and Notice Filing Procedures Of Securities D. Part IV - General Provisions
a
An investment adviser has decided to change its fee structure and will begin charging a prepaid advisory fee for new clients, but will keep its pre-existing fee structure for its existing clients. Under the requirements of the Investment Advisers Act of 1940, which statements are TRUE? I A revised brochure must be provided to new clients II Prompt amendment of Form ADV filed with the SEC is required III Approval of the investment adviser's existing clients must be obtained IV Filing with the SEC of the fee change must be completed within 30 days A. I and II B. III and IV C. I and IV D. II and III
a
An investment adviser is registered in State A where it maintains its home office and most of its employees. The IA has an office in State B as well. The Administrator of State B determines that the IA is insolvent in State B. What action can the Administrator of State B take? A. The Administrator can revoke the registration of the Investment Adviser in State B B. The Administrator can revoke the registration of the Investment Adviser in State B only if the adviser has custody of client funds C. The Administrator can revoke the registration of the Investment Adviser in both States A and B D. The Administrator can do nothing because the adviser's principal place of business is State A
a
An investment adviser that is registered with the SEC under the Investment Advisers Act of 1940 moves to a new location. An amendment to Form ADV MUST be filed with the SEC: A. promptly B. within 1 day C. within 30 days D. within 90 days
a
An investment adviser to a hedge fund with $250 million of AUM has invested 100% of fund assets in gold, anticipating a steep stock market decline and flight to safety by investors. The investment adviser: A. must register with the SEC B. must register with the CFTC C. must register with both the CFTC and the SEC D. is neither required to register with the SEC nor the CFTC
a
Criminal violations of the Uniform Securities Act are punishable by: I $5,000 fine II $10,000 fine III 3 years in jail IV 5 years in jail A. I and III B. I and IV C. II and III D. II and IV
a
If an investment adviser creates a website and offers individualized investment services based on client input, then: I this is considered to be an offer of advisory services in the State where the client who gave input resides II this is not considered to be an offer of advisory services in the State where the client who gave input resides III the investment adviser and its agents must be registered in each State where the client who gave input resides IV the investment adviser and its agents are not required to be registered in each State where the client who gave input resides A. I and III B. I and IV C. II and III D. II and IV
a
If an offerer offers to buy back a securities issue that was inadvertently sold in the State, buyers of the issue have how many days to accept the offer? A. 30 B. 60 C. 90 D. 120
a
In order for the State Administrator to enter an order revoking or suspending a registration, which requirement MUST be present? A. The order must be in the public interest B. The registration must be misleading C. A complaint must have been received by the Administrator D. A willful violation of the Act must have occurred
a
Licensing of investment adviser representatives occurs at the: A. State level only B. Federal level only C. Both the Federal and State level D. Neither the Federal nor State level
a
NASAA administers the: A. Uniform Securities Act B. Securities Act of 1933 C. Investment Advisers Act of 1940 D. Investment Company Act of 1940
a
Regarding inspection powers, the State Administrator: I can visit and conduct a walk-in audit of broker-dealer offices intra-State if it is in the public interest or for the protection of investors II can visit and conduct a walk-in audit of broker-dealer offices inter-State if it is in the public interest or for the protection of investors III can neither visit nor conduct a walk-in audit of broker-dealer offices intra-State IV can neither visit nor conduct a walk-in audit of broker-dealer offices inter-State if it is in the public interest or for the protection of investors A. I and II B. III and IV C. I and IV D. II and III
a
The Administrator is permitted to deny, revoke, or suspend the registration of any person associated with a broker-dealer who has been convicted of a misdemeanor involving securities or monies; or any felony; within the past: A. 10 years B. 15 years C. 20 years D. 25 years
a
Under the Investment Advisers Act of 1940, after receiving an investment adviser application, the SEC must grant a registration to an investment adviser; or start a proceeding denying registration, within how many days? A. 45 B. 90 C. 120 D. 180
a
Under the Investment Advisers Act of 1940, which of the following persons is exempt from registration with the SEC? A. An investment adviser whose only clients are insurance companies B. An investment adviser whose only clients are investment companies C. An investment adviser whose only clients are pension plans D. All of the above
a
Under the Uniform Securities Act, in a civil suit brought by a purchaser against a seller that is alleged to have violated the Uniform Securities Act, the burden of proof rests with the: (plaintiff) A. Buyer of the securities B. Seller of the securities C. State securities administrator D. Judge presiding over the state court hearing the case
a
Unintentional violations of the Uniform Securities Act that are considered to be a misdemeanor subject that person to: A. civil liability only B. civil liability and civil penalties C. criminal liability only D. criminal liability and criminal penalties
a
Which of the following statements are TRUE regarding the actions of an investment adviser and its accounts? I The transfer of a customer account to another investment adviser due to the acquisition of the advisory firm must be approved by the customer of the acquired firm II The transfer of a customer account to another investment adviser due to the acquisition of the advisory firm does not have to be approved by the customer of the acquired firm III The transfer of a customer account due to the retirement of the investment adviser must be approved by the customer whose account is being transferred IV The transfer of a customer account due to the retirement of the investment adviser does not have to be approved by the customer whose account is being transferred A. I and III B. I and IV C. II and III D. II and IV
a
Which of the following statements is TRUE regarding a sales representative who intentionally embezzles monies from a customer's account? A. The sales representative has committed a felony and is subject to fines and/or imprisonment B. The sales representative has committed a felony and is subject to fines and/or imprisonment only if the customer's monies are not replaced within a specific time frame C. The sales representative has committed a fraudulent and misleading act only if the customer's monies are not replaced within a specific time frame D. None of the above
a
A broker-dealer that is not registered in a State sells non-exempt securities in non-exempt transactions to customers located in that State. That State's Administrator will: A. require that the securities be registered in the State and that the broker-dealer register in that State B. require the broker-dealer to make an offer of rescission to each purchaser in that State C. require that a notice filing be made in the State along with the payment of a filing fee D. institute an action in a court of law alleging criminal activities on the part of the broker-dealer
b
A private fund adviser with less than $150 million of assets under management: A. must register with the SEC B. must report to the SEC C. must register with, and report to, the SEC D. is neither required to register with, nor report to, the SEC
b
A registered investment adviser lives in State X. The adviser does business with 1 client in State A and 1 client in State B. The adviser gives seminars about investing to groups of potential customers in State C. The adviser is required to register in: A. State X only B. States X and C only C. States X, A, and C D. States, X, A, B, and C
b
An investment adviser is a private fund adviser that is not required to register with the SEC. In order to maintain its exempt adviser status, it can only solicit investors who are: A. sophisticated B. qualified C. accredited D. registered
b
An investment adviser wishes to participate in the gains of the accounts that he administers. Under the Investment Advisers Act of 1940, the investment adviser: A. can only enter into advisory contracts with accredited investors as promulgated under Regulation D of the Securities Act of 1933 B. can only enter into advisory contracts with individuals that place at least $1,000,000 under management C. can only enter into advisory contracts with QIBs as defined under Rule 144A as promulgated under the Securities Act of 1933 D. is prohibited from entering into advisory contracts that permit participation in profit and loss
b
Delivery of the investor brochure under the brochure rule can be satisfied by giving the customer a copy of the investment adviser's Form: A. ADV Part 1 B. ADV Part 2A C. ADV-S D. ADV-W
b
If an investment adviser wishes to charge a performance fee that allows it to share a percentage of capital gains in a customer account, then under the Investment Advisers Act of 1940: A. such an arrangement is prohibited because of the inherent conflict of interest between the investor and the adviser B. the adviser must disclose to the customer that such an arrangement can give the adviser an incentive to increase the portfolio's risk exposure C. the adviser must disclose that if a fixed fee were charged, the customer would be paying a lower fee, but the adviser would have to make this up by increasing its charges D. such an arrangement is permitted as long as all fees are disclosed to customers
b
Information received by the Administrator in a private investigation may: I be shared among the officers and employees of the Administrator II not be shared among the officers and employees of the Administrator III be shared with any interested party that makes a written request IV not be shared with any interested party that makes a written request A. I and III B. I and IV C. II and III D. II and IV
b
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
b
The Administrator is empowered to amend or rescind any rule of the Uniform Securities Act: A. if such change is ratified by majority vote of the state legislature B. as he deems necessary to carry out the provisions of the Act C. if the change is approved by the Securities and Exchange Commission D. if the change is approved by the Governor of that state
b
The State Administrator is permitted to do all of the following EXCEPT: A. withhold registration of a security B. arrest an individual for violating State law C. request that the state Attorney General file criminal charges against an individual for willfully violating State law D. request that the state Attorney General file civil charges against an individual for violating State law
b
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
b
Transactions that violate the Uniform Securities Act are voidable at the option of the: A. Issuer B. Purchaser C. Seller D. Administrator
b
Under the Investment Advisers Act of 1940, all of the following statements about investment advisory contracts are true EXCEPT investment advisory contracts: A. must be in writing B. must be filed with the SEC 10 days in advance of their effective date C. must provide for notification to customers if there is a change in the composition of the advisory partnership D. may provide for a fee that is partially based upon capital gains for customers who have at least $1,000,000 of assets invested; or who have a net worth of $2,100,000
b
Under the Investment Advisers Act of 1940, which of the following statements is FALSE about the acceptance of prepaid advisory fees by an investment adviser? A. The fees must be detailed in writing in the advisory contract B. The fees cannot amount to more than 6 months' payment in advance C. Prepaid fees in excess of $1,200 require that the adviser's balance sheet be included in the "Brochure" D. A refund of prepaid fees must be given if the contract is cancelled prematurely
b
Where no fraud is present, an action to recover monies arising from a violation of the Uniform Securities Act must commence within: A. 1 year following discovery B. 2 years following discovery C. 5 years following discovery D. 10 years following discovery
b
Which action taken by the Administrator is the most severe? A. Suspension B. Revocation C. Cease and Desist D. Cancellation
b
Which statements are TRUE regarding rules and orders that are entered by the Administrator? I Rules are general in applicability II Rules are specific in applicability III Orders are general in applicability IV Orders are specific in applicability A. I and III B. I and IV C. II and III D. II and IV
b
A Federal covered investment adviser registered under the Investment Advisers Act of 1940 wants to include an exculpatory clause in the advisory contract. Which statement is TRUE about this? A. The clause is permitted because this is a Federal covered adviser B. The clause is permitted because it is beneficial to the client C. The clause is prohibited and unenforceable under Federal and State law D. The clause is prohibited because it denies the adviser the right to pursue claims against the client
c
A broker-dealer registration application CANNOT be denied in a State if the broker-dealer has: A. filed an application that is incomplete in any material respect B. hired an individual as an agent who has committed a felony C. a lack of experience trading securities for its own account or for the account of others D. willfully violated a provision of the Uniform Securities Act
c
A broker-dealer that is offering a new issue in a State has obtained a legal opinion from its counsel that the issue is exempt from registration in that State. After the offering is completed, the State Administrator determines that the issue should have been registered. Which statement is TRUE regarding the broker-dealer's liability in this situation? A. The broker-dealer has no liability because it can rely on the legal opinion as its defense B. The broker-dealer has no liability because it acted in good faith in the transaction C. The broker-dealer has civil liability since it offered the securities in contravention of State law D. The broker-dealer has criminal liability because it has shown scienter in this transaction
c
A private fund adviser: A. must file Form PF with the SEC B. must file Form ADV with the SEC C. must file both Form PF and Form ADV with the SEC D. is neither required to file Form PF nor Form ADV with the SEC
c
A sales representative who fails to register as an agent of a broker-dealer: I has committed a felony II has committed a misleading Act III is subject to civil liability IV is subject to criminal liability A. I and III only B. I and IV only C. II and III only D. II and IV only
c
All of the following are specifically EXCLUDED from the definition of an investment adviser under the Investment Advisers Act of 1940 EXCEPT: A. lawyers B. accountants C. financial planners D. engineers
c
An agent would be denied registration for all of the following reasons EXCEPT the agent: A. is insolvent B. failed to pay registration filing fees C. was convicted of a securities misdemeanor 11 years ago D. is not affiliated with a broker-dealer
c
An investment adviser representative has solicited a new client over the phone to purchase advisory services, but no sale results and she takes no further action. The IAR knows this individual, who she has met at her kid's school PTA meetings. The IAR has no more interaction with the potential client, but at the next PTA meeting, the potential client tells the IAR that she has thought about it and is ready to sign the agreement right there. The IAR has a contract form in her briefcase, but does not have the brochure. Which statement is TRUE? A. The investment adviser representative can have the customer sign the contract as long as the brochure is delivered within 48 hours B. The investment adviser representative can have the customer sign the contract as long as the brochure is delivered within 5 business days C. The investment adviser representative cannot have the customer sign the contract unless a brochure is delivered at the same time D. The investment adviser representative can have the customer sign the contract as long as she does not cash the check until the brochure is delivered
c
An investment adviser representative's friend provides him with a list of 10 prospective clients. The representative agrees to pay his friend a referral fee for each person on the list that opens an account with the adviser. Which statement is TRUE? A. The arrangement is permitted without restriction B. The arrangement is permitted only if it is in writing between the investment adviser and the friend C. The arrangement is permitted only if it is in writing between the investment adviser and the friend and the arrangement is disclosed in writing to any customer opening an account D. The arrangement is prohibited
c
An updating amendment to Form ADV must be filed by an investment adviser with the SEC: I within 45 days II within 90 days lII of the firm's fiscal year end IV of the calendar year end A. I and III B. I and IV C. II and III D. II and IV
c
If an investment adviser is found to be insolvent, powers of the Administrator include the ability to: I petition the court to issue a permanent injunction against a person from engaging in the investment advisory business II make the showing required to appoint a receiver to protect the assets of customers held in custody of the investment adviser III imprison individuals for a period of up to 10 years for willful violations A. I only B. II only C. I and II D. I, II, III
c
If an investment adviser, for the first time, takes a $1,200 prepaid advisory fee, more than 6 months in advance of services rendered: A. the SEC will terminate the adviser's registration within 45 days B. an ADV Part 1 must be filed by the adviser promptly C. an ADV Part 2A along with a balance sheet must be filed by the adviser promptly D. the investment adviser must obtain fidelity bonding coverage of at least $25,000
c
Investment advisers that have separate broker-dealer entities are permitted to accept which of the following compensation items? I Fixed annual fees II Fees based on a percentage of assets under management III Commissions based on trades IV Fees based on the capital appreciation of the securities in the portfolio A. II only B. I and IV C. I, II, III D. I, II, III, IV
c
Private Fund Advisers: A. are not required to register with the SEC B. must register with the SEC once assets under management reach $100 million C. must register with the SEC once assets under management reach $150 million D. must register with the SEC once assets under management reach $200 million
c
The "Brochure Rule" applies to: A. oral advisory contracts only B. written advisory contracts only C. both oral and written advisory contracts D. neither oral nor written advisory contracts
c
The Administrator can take which of the following actions? I Require a witness to testify in a hearing, even though the testimony may tend to incriminate that witness II Suspend the constitutional privilege against self-incrimination available to an individual III Inspect a broker-dealer located in another State that does business in the Administrator's State IV Coordinate inspections with those conducted by the Securities and Exchange Commission A. II and IV B. I, II, III C. I, III, IV D. I, II, III, IV
c
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
c
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
c
The anti-fraud provisions of the Uniform Securities Act would apply to the sale in the State of:no insurance products) I fixed annuities II variable annuities III whole life insurance IV variable life insurance A. I and II only B. III and IV only C. II and IV only D. I, II, III, IV
c
The provisions of the Uniform Securities Act apply to solicitation of the public to buy or sell securities or advisory services that are made: A. by mail or telephone in that State and received in that State B. by mail or telephone outside that State and received in that State C. by mail or telephone either inside or outside that State and received in that State D. by mail or telephone either inside or outside that State and are received either inside or outside that State
c
The statute of limitations for criminal violations of the Uniform Securities Act is: A. 1 year B. 3 years C. 5 years D. 6 years
c
Under the Investment Adviser's Act of 1940, an investment adviser that advertises itself as a "fee only" adviser would be permitted to collect: I a fee charged for each hour of work performed for the client II a fee based on asset performance in that client's account for wealthy investors III 12b-1 fees from mutual funds recommended to that client IV a fee based on assets held under management in that client's account A. I and III B. II and IV C. I, II, IV D. I, II, III, IV
c
Which of the following are NOT required to register as investment advisers under the Investment Advisers Act of 1940? Persons who give advice: I on U.S. Government securities II solely to insurance companies III solely to investment companies IV to customers within one State, where the investment adviser is a resident of that State A. II and III B. III and IV C. I, II, IV D. I, II, III, IV
c
Which of the following individuals will be denied federal registration as an investment adviser? A. A person who was convicted of misappropriation of funds 12 years ago B. A person who has been imprisoned for 3 months for "DUI" - driving under the influence C. A person who, 11 years ago, was imprisoned for 18 months for counterfeiting D. None of the above
c
Which of the following statements are TRUE? I Investment advisers with assets of less than $100,000,000 are required to register in each State II Investment advisers with assets of $100,000,000 are required to be registered with the SEC III Investment adviser representatives associated with advisers with assets of less than $100,000,000 can be required to be registered in each State IV Investment adviser representatives associated with advisers with assets of more than $100,000,000 are required to be registered with the SEC A. I and II B. III and IV C. I, II, III D. I, II, III, IV
c
Which statements are TRUE about the solicitor's brochure under the Investment Advisers Act of 1940? I It must disclose the specific dollar fee, or percentage of advisory fee paid by the customer, that the solicitor will earn for referring the customer II It can be incorporated into the investment adviser's brochure, so that only one document is provided to the customer III It must disclose that the solicitor will be compensated for referring the client to the investment adviser IV The customer must sign that he or she received the solicitor's brochure A. I and II only B. III and IV only C. I, III, and IV D. I, II, III, IV
c
A pension consultant has been hired by an employee benefit fund to render advice for compensation. The adviser is exempt from the registration requirements of the Investment Advisers Act of 1940 if it takes any of the following actions EXCEPT: A. retaining an outside counsel to advise the plan on labor law B. hiring an accounting firm to provide employee benefit consulting services to the plan C. allocating plan assets to investments in real estate D. deciding the proportion of plan assets to be invested in securities
d
ADAP Advisors is a State-registered adviser with 7 IARs. One of the IARs, Mark, leaves the employ of ADAP to join another advisory firm. His accounts are assigned by ADAP to the remaining 6 IARs at ADAP. By taking this action, ADAP: A. is required to notify each of Mark's customers of the change of IAR and get the customer's approval B. is required to send a negative consent letter to each of Mark's clients and if no response is received, the assignment is permitted C. has violated the Investment Advisers Act of 1940 because advisory contracts cannot be assigned D. is not required to take any further action
d
Actions that are violations of the Uniform Securities Act could cause that individual to be subject to: I State government anti-fraud provisions II Federal Government anti-fraud provisions III Common law deceit provisions A. I only B. III only C. I and III D. I, II, III
d
All of the following are defined as impersonal advisory services under the Investment Advisers Act of 1940 EXCEPT: A. oral advice that is not based upon specific customer situations B. written advice that is not based upon specific customer situations C. statistical information prepared using a computer program about the performance of a security or group of securities D. financial plan prepared using a computer program based upon statistical information provided by the customer
d
All of the following are disclosed in Form ADV Part 2A EXCEPT: 2a only! A. investment policies of the adviser B. type of investments made by the adviser C. investment practices of the adviser D. states in which the adviser is registered
d
All of the following are disclosed in an investment adviser registration under the Investment Advisers Act of 1940 EXCEPT: A. compensation basis to the investment adviser B. approximate market value of portfolios managed C. approximate number of advisory clients D. names and addresses of advisory clients
d
An agent is registered in State Y. The agent accompanies a customer to State Z on a golf outing, where the agent makes an offer of securities to the customer. Which statements are TRUE? I State Y has jurisdiction over the offer of securities II State Z has jurisdiction over the offer of securities III The agent may qualify for a de minimis exemption in State Y IV The agent may qualify for a de minimis exemption in State Z A. I and III B. I and IV C. II and III D. II and IV
d
An investment adviser that solely follows and recommends listed securities is: A. exempt from State registration B. exempt from Federal registration C. subject to State registration only D. subject to either State or Federal registration
d
Disclosure of which of the following is made in a Form ADV Part 2 that is filed with the SEC under the Investment Advisers Act of 1940? I Description of how fees are assessed II Method of analysis used III Educational background of applicant IV Balance sheet of applicant if the firm takes custody of client funds or accepts $1,200 or more of prepaid advisory fees A. I and II only B. III and IV only C. I, II and IV D. I, II, III, IV
d
If an agent does not obey a subpoena to testify in court, as required by the Administrator, the court may do all of the following EXCEPT: A. hold the agent in contempt of court B. order the agent to appear before the Administrator C. grant injunctive relief restricting the sale or offer of securities D. incarcerate the agent for up to 60 days to compel attendance
d
If an investment adviser wishes to use a paid solicitor, under the Investment Advisers Act of 1940, all of the following statements are true EXCEPT the: A. solicitor must provide the customer with a copy of the investment adviser's brochure B. solicitor cannot be subject to statutory disqualification under the Securities Acts C. solicitor must disclose to the customer any additional costs of providing advisory services, due to the nature of the relationship between the solicitor and the investment adviser D. solicitor must register with the SEC as an investment adviser
d
Intentional or willful violations of the Uniform Securities Act that are considered to be a felony subject that person to: A. civil liability only B. civil liability and civil penalties C. criminal liability only D. criminal liability and criminal penalties
d
Investment advisers with assets of $110,000,000 or more must register: A. only with the State in which the investment adviser is incorporated B. in all of the States in which the investment adviser does business C. with the SEC and all of the States in which the investment adviser does business D. with the SEC only
d
Registration as an investment adviser allows one to say that: A. FINRA approves of the adviser B. the SEC endorses the adviser C. the State Administrator recommends the adviser D. the firm is a registered investment adviser
d
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
d
The State Administrator is empowered to do all of the following EXCEPT: A. administer oaths and affirmations B. hold disciplinary hearings C. conduct investigations D. issue a summons for a failure to appear
d
The anti-fraud provisions of the Uniform Securities Act apply to: I exempt securities II non-exempt securities III exempt transactions IV non-exempt transactions A. I only B. I and II C. III and IV D. I, II, III, IV
d
Under the Investment Advisers Act of 1940, a solicitor that contacts a customer to purchase the services of an investment adviser must, upon entering into a written contract: A. give the customer the adviser's brochure B. give the customer both the adviser's brochure and the solicitor's brochure C. obtain a signed and dated statement from the customer acknowledging receipt of the adviser's brochure D. obtain a signed and dated statement from the customer acknowledging receipt of both the adviser's brochure and the solicitor's brochure
d
Under the Investment Advisers Act of 1940, all of the following are requirements for a family office to be excluded from the definition of an Investment Adviser EXCEPT: A. The family office must only provide investment advice to clients who are part of that family B. The family office must be wholly owned by family clients and exclusively controlled by family members or entities C. The family office cannot hold itself out as an investment adviser D. The family office must have less than $100 million of assets under management
d
Under the Investment Advisers Act of 1940, if there are material changes, existing customers of investment advisers MUST be sent a revised "Brochure" at least: A. monthly B. quarterly C. semi-annually D. annually
d
Under the Investment Advisers Act of 1940, the term "investment counsel" may only be used by an investment adviser if the: A. adviser is also a bank located in that State B. adviser is also a broker-dealer registered in that State C. primary business of the adviser is recommending the brokerage services of another firm D. primary business of the adviser is the rendering of investment advice
d
Under the Investment Advisers Act of 1940, which of the following are included in the Form ADV Part 1 filed with the SEC? I A list of the officers of the advisory firm II A list of the shareholders of the advisory firm III The States in which the advisory firm is registered A. I only B. I and II C. III only D. I, II, III
d
Under the Uniform Securities Act, after an unintentional illegal sale, the customer who bought the issue can: I sue under civil liability II sue under criminal liability III recover the cost of the securities plus 6% interest IV recover attorney's fees A. I and III only B. II and III only C. II and IV D. I, III, IV
d
Under the Uniform Securities Act, during an investigation, the Administrator may: A. require an affidavit from an agent of a broker-dealer B. subpoena books, records and witnesses C. require testimony that might tend to incriminate the giver D. all of the above
d
Under the Uniform Securities Act, the Administrator does NOT have jurisdiction over offers of advisory services made to: A. residents of that State by a non-resident investment adviser B. residents of that State by a resident investment adviser C. non-residents of that State by a resident investment adviser D. non-residents of that State by a non-resident investment adviser
d
Under the Uniform Securities Act, which of the following transactions are voidable by the buyer? I A customer was unknowingly sold stocks at prices higher than the current market at the time of the trade II Material facts were unknowingly omitted by the agent who sold the stock to the customer III A customer was unknowingly sold unsuitable securities A. I only B. I and II C. II and III D. I, II, III
d
Which of the following are "federal covered" advisers? I An investment adviser with $400,000,000 of assets under management II An investment adviser to an investment company with $400,000,000 of assets under management III An investment adviser to an investment company with $40,000,000 of assets under management A. I only B. I and II C. II and III D. I, II, III
d
Which of the following are "federal covered" advisers? I Investment adviser to an investment company with $2,500,000 of assets under management II Investment adviser to an investment company with $25,000,000 of assets under management III Investment adviser to an investment company with $100,000,000 of assets under management A. I only B. II and III only C. III only D. I, II, III
d
Which of the following are required for registration as an investment adviser under the Investment Advisers Act of 1940? I Payment of a filing fee II Filing of a Form ADV Part 1 III Filing of a Form ADV Part 2 A. II only B. I and II C. II and III D. I, II, III
d
Which statement is NOT true about enforcement of the Investment Advisers Act of 1940? A. The SEC has the power to collect evidence, subpoena witnesses and to take oaths and affirmations B. The SEC can issue orders denying or revoking registration of an investment adviser C. Orders of the SEC may be appealed by filing a motion in the U.S. Court of Appeals D. The State Court in which the defendant is located has primary jurisdiction in both criminal and civil suits brought under the Act
d
Which statements are TRUE about civil suits brought under the provisions of the Uniform Securities Act? I A civil suit may be brought by any person who has been damaged by the actions of a broker-dealer, investment adviser or their agents II If the plaintiff wins the suit, the seller is liable to the buyer for the cost of the securities, any interest earned, legal fees, and court costs III The seller will not be held liable by the court if, in the exercise of reasonable care, he or she could not have known about the untrue statement or misleading omission of fact IV Third parties that have a financial interest in the seller's actions can also be held liable under the Act A. I and II B. III and IV C. I, II, III D. I, II, III, IV
d
XYZ Advisers is a federal covered adviser with an office in State A. It has 400 clients in State A; 6 clients in State B; and 3 clients in State C. A customer in State C files a complaint with that State's Administrator alleging that XYZ adviser made misleading statements. Which State Administrator(s) has the authority to revoke XYZ Adviser's registration? (federal?) A. State A only B. States A and B only C. States A, B and C D. None of the above
d
