Registration and Licensing Requirements Study Questions
An agent of a broker-dealer is registered in State A. The agent has a customer who lives in State A who will be going to college in State B. The agent is not registered in State B. Which statement is TRUE about the agent doing business with the student while he or she is in State B? -The agent cannot do business with the student in State B unless the agent registers in that State -The agent can do business with the student in State B without having to register in State B -The agent can only accept unsolicited transactions from the student in State B if the agent is not registered in State B -The agent can only perform up to 5 transactions a year for the student without having to register in State B
The agent can do business with the student in State B without having to register in State B
Under the Uniform Securities Act, an unregistered individual employed by a registered broker-dealer may sell securities: -in exempt transactions only -if the securities are exempt -if the public is not solicited -under no circumstances
under no circumstances
Which of the following would be required to register as an investment adviser in a State? -A person with no office in the State that only renders investment advice to insurance companies for compensation -A person who gives investment advice to charitable organizations on a "pro bono" basis -A person who has no current advisory customers, but who is seeking clients by newspaper advertising -A person who gives advice about investing in securities only as an incidental part of his accounting practice
A person who has no current advisory customers, but who is seeking clients by newspaper advertising
All of the following statements are true regarding persons that transact business in a State EXCEPT: -Investment advisers must register in the State -Investment adviser representatives must register in the State -Federal covered advisers must register in the State -Representatives of federal covered advisers must register in the State
Federal covered advisers must register in the State
An individual giving advice about which of the following products would be defined as an "investment adviser representative" under the Uniform Securities Act? -New York Stock Exchange listed issues -Fixed annuities -Whole life insurance -Commodities
New York Stock Exchange listed issues
An investment adviser representative of a Federal Covered adviser with an office in the state only has insurance companies as clients. Where must the investment adviser representative register? -SEC -State -Both the SEC and the State -Neither the SEC nor the State
State
Under the Uniform Securities Act, a person could give advice about all of the following securities without having to register in the State as an investment adviser EXCEPT: -Treasury Bonds -Ginnie Mae Pass-Through Certificates -Fannie Mae Debentures -State General Obligation Bonds
State General Obligation Bonds
A broker-dealer is required to register with: -the SEC -FINRA -the state where it is located or does business with the public and the SEC -all of the above
all of the above
An agent of a broker-dealer in State A has filed a registration application with State A that is not yet effective. During this time period, the agent may: -solicit orders from customers in State A, but not in other States -accept unsolicited orders from customers that reside in any State -be compensated based on sales of securities made to customers -answer questions from customers about information included on customer account statements and confirmations
answer questions from customers about information included on customer account statements and confirmations
Under the Uniform Securities Act, a person who renders investment advice solely about U.S. Government Agency securities is defined as a(n): -investment adviser and must register under the Act -federal covered adviser, and is not required to register under the Act -broker-dealer and must register under the Act -agent and is required to register under the Act
federal covered adviser, and is not required to register under the Act
Under the Uniform Securities Act, all of the following persons with no place of business in the State are EXEMPT from registration as an investment adviser EXCEPT advisers that: -deal solely with insurance companies -deal solely with investment companies -deal solely with broker-dealers -have more than 5 clients in the state in the preceding 12 months
have more than 5 clients in the state in the preceding 12 months
A broker-dealer uses summer interns who answer the telephone, give stock quotes, and take orders from clients. The summer interns: -are not required to be registered in the State as agents because of their temporary status -are not required to be registered as agents in the State because they are performing clerical functions -must be registered in the State because they are transacting securities business with the public -must be registered in the State because they are working for a broker-dealer
must be registered in the State because they are transacting securities business with the public
In order to make an offer of a non-exempt security, an agent of a broker-dealer: -must be registered in the State in which he or she resides and the broker-dealer is located -must be registered in the State where he or she is offering the security -must be registered in the State in which he or she resides and the broker-dealer is located and must be registered in the State where he or she is offering the security -need not be registered
must be registered in the State in which he or she resides and the broker-dealer is located and must be registered in the State where he or she is offering the security
Which person is NOT required to register as a broker-dealer in a State? -A firm with no place of business in the State that has no clients in the state -A firm with no place of business in the State that has 25 clients in the state over the preceding 12 months -A firm with a place of business in the State that deals exclusively with issuers -A firm with a place of business in the State that deals exclusively with financial institutions
A firm with no place of business in the State that has no clients in the state
Which of the following investment advisers with no office in a State would be required to register in the State? -An adviser that writes research reports distributed to customers -An adviser whose clients consist of 8 mutual funds and 8 individuals, 5 of whom are officers of the adviser -An adviser whose clients consist of 5 mutual funds and 8 individuals -An adviser whose clients consists of 15 mutual funds and 3 individuals
An adviser whose clients consist of 5 mutual funds and 8 individuals
Under the Uniform Securities Act, which of the following persons must register as a broker-dealer in a state? I A firm with a place of business in the state that has clients in the state II A firm with no place of business in the state that has no more than 25 clients in the state in the preceding 12 months III A firm with no place of business in the state that deals exclusively with issuers IV A firm with no place of business in the state that deals exclusively with financial institutions
I and II only
An agent doing business in one state would like to solicit in a neighboring state. Which statement(s) are TRUE? I The broker-dealer must be registered in the neighboring state II The broker-dealer need not be registered in the neighboring state III The agent must be registered in the neighboring state IV The agent need not be registered in the neighboring state
I and III
To be exempt from registration in a State, an investment adviser must: I be registered with the SEC under the Investment Advisers Act of 1940 II be registered in another State III have at least $100,000,000 of assets under management IV have less than $100,000,000 of assets under management
I and III
Federal covered advisers are required to: I register with the Securities and Exchange Commission II file notice with the Securities and Exchange Commission III register with the State IV file notice with the State
I and IV
Which statements are TRUE about State registration of investment adviser representatives? I If the representative is located in State A, then the representative must register in State A II If the representative is located in State A, then the representative must register in State B if the representative only deals with institutions in State B III If the representative is located in State A, then the representative must register in State B if the representative only has 5 or fewer clients in State B IV If the representative is located in State A, then the representative must register in State B if the representative only effects transactions with individuals in State B
I and IV
State "blue sky" laws provide for registration of: I broker-dealers II agents III investment advisers IV investment adviser representatives
I, II, III, IV
Which of the following statements are TRUE regarding Federal Covered Advisers and their representatives that have a place of business in a state? I Federal Covered Advisers must register in the State II Federal Covered Advisers are not required to register in the State III Representatives of Federal Covered Advisers must register in the State IV Representatives of Federal Covered Advisers are not required to register in the State
II and III
An individual who lived in State B is an existing client of Broker-Dealer. She has temporarily relocated to State A. She contacts her agent located in State B to buy securities. Which statement is TRUE? -The Broker-Dealer and the agent must be registered in State A only -The Broker-Dealer and the agent must be registered in State B only -The Broker-Dealer and the agent must be registered in both States A and B -The Broker-Dealer is only required to be registered in State B and the agent must be registered in both States A and B
The Broker-Dealer and the agent must be registered in both States A and B
An existing customer of a broker-dealer registered in State "A" is vacationing in State "B." Which statement is TRUE? -The broker-dealer may only solicit the customer in State "B" if it has been registered in State "B" -The broker-dealer may solicit the customer in State "B" without registering in State "B" -The broker-dealer is prohibited from making any communication into a State unless it has a branch office in that State -The broker-dealer must notify the Administrator in State "B" prior to any solicitation in that State
The broker-dealer may solicit the customer in State "B" without registering in State "B"
A broker-dealer has a client who is recently retired. The broker-dealer and the customer are both located in Minnesota, and the broker-dealer is registered in that State. The customer has just purchased a second home in Florida, and now intends to spend November through March there. The broker-dealer is not currently registered in Florida. Can the broker-dealer do business with the client while he is in Florida?
The broker-dealer must register in the State of Florida
ACME Securities is a registered broker-dealer in State A. ACME is soliciting individuals to work for the firm in their spare time, from a home office. For selling ACME's products to customers, these individuals will be paid 25% of commissions generated. Since these individuals are not working in ACME's office, ACME has classified them as independent contractors. Which statement is TRUE? -These individuals are not required to be registered as representatives in State A because they are not ACME employees -These individuals must register themselves as representatives in State A because they are not ACME employees -These individuals must be registered as representatives in State A by ACME Securities -These individuals only need to be registered in State A by ACME if they become full-time representatives
These individuals must be registered as representatives in State A by ACME Securities
A person with no office in the State is solely engaged in the business of giving investment advice to insurance companies for compensation. Under the Uniform Securities Act, this person would be EXEMPT from the Act's: -registration provisions -anti-fraud provisions -advertising filing provisions -common law deceit provisions
registration provisions
A Registered Investment Adviser enters into an agreement with a Certified Public Accountant, where the CPA will refer clients that need the services of an investment adviser. For each client referral, the CPA will be paid a fee. The CPA is: -required to register in the State as an agent -required to register in the State as an investment adviser representative -not required to register in the State because he already has an independently conferred professional designation -not required to register in the State because he is regulated by the AICPA
required to register in the State as an investment adviser representative
A broker-dealer that is registered in Canada and that is not registered in any State may effect transactions in Canadian securities: -with any existing customer that is a Canadian citizen who is vacationing in the United States -with a new customer that is a Canadian citizen who is vacationing in the United States -with any Canadian citizen located in any part of the United States -only in the Canadian provinces and not in the United States
with any existing customer that is a Canadian citizen who is vacationing in the United States
Which of the following individuals employed by a Federal Covered Adviser would be required to register in the State? -An individual employed by the adviser to write research reports distributed to customers -An individual whose clients consist of 8 mutual funds and 8 individuals, 5 of whom are officers of the adviser -An individual whose clients consist of 5 mutual funds and 8 individuals -An individual whose clients consists of 15 mutual funds and 3 individuals
An individual whose clients consist of 5 mutual funds and 8 individuals
An agent may be associated with more than 1 broker-dealer at the same time if: I all broker-dealers with whom the agent is associated are under common control II the State Administrator allows the "dual registration" III the agent files a registration application through each broker-dealer, and discloses any other broker-dealer employers on the application
I, II, III
Which of the following with a place of business in the State are required to register in a State? I Investment adviser representative II Federal covered adviser representative III Broker-dealer representative
I, II, III
Which statements are TRUE about registration of investment advisers? I An adviser with no place of business in the State that limits its clientele to insurance and investment companies is exempt from registration II Broker-dealers can act as investment advisers without registering as such if any advice given is solely incidental to the business of the broker-dealer III Investment Advisers must register with the State
I, II, III
Which of the following investment advisers are NOT required to register in a State? I An investment adviser with at least $100,000,000 of assets under management registered with the SEC under the Investment Advisers Act of 1940 II An investment adviser with no place of business in the State who deals solely with financial and institutional investors III An investment adviser with no place of business in the State who deals solely with broker-dealers IV An investment adviser with no place of business in the State who has no more than 5 clients in that State over the last 12 months
I, II, III, IV
Which of the following investment advisers are NOT required to register in a State? I An investment adviser with less than $100,000,000 of assets that is not registered with the SEC under the Investment Adviser's Act of 1940 II An investment adviser with no place of business in the State who deals solely with financial and institutional investors III An investment adviser with no place of business in the State who deals solely with broker-dealers IV An investment adviser with no place of business in the State with no more than 5 clients in that State in the past 12 months
II, III and IV only
The directors of a company decide to offer shares of the company from the company's unissued stock directly to company employees. The proceeds of the sale go to the company, but the directors take a commission from the employees on these sales. Which of the following statements are TRUE? I This is a non-issuer transaction II The directors are defined as agents of the issuer III The directors must be registered IV The securities must be registered
II, III, IV
Under the Uniform Securities Act, which of the following persons must register as a broker-dealer in a state? I A firm with no place of business in the state that has no clients in the state II A firm with no place of business in the state that has 25 clients in the state over the preceding 12 months III A firm with a place of business in the state that deals exclusively with issuers IV A firm with a place of business in the state that deals exclusively with financial institutions
II, III, IV
Under the Uniform Securities Act, if an investment adviser representative wishes to offer advisory services in a neighboring State: -the investment adviser must be registered in the neighboring State -the investment adviser representative must be registered in the neighboring State -both the investment adviser and the investment adviser representative must be registered in the neighboring State -neither the investment adviser nor the investment adviser representative must be registered in the neighboring State
both the investment adviser and the investment adviser representative must be registered in the neighboring State
An agent of a broker-dealer registered in all 50 States is located in the State of Missouri, where the broker-dealer maintains a call center. The agent is only registered in the State of Missouri. A new customer that is a resident of Florida has seen one of the broker-dealer's television advertisements and calls the "800" number in the advertisement, reaching this agent. The customer states that she wants to "Buy some good stocks - what do you recommend?" Under the Uniform Securities Act, the agent: -can recommend securities to the customer because the broker-dealer is registered in the State of Florida -can recommend securities to the customer because the call was received in the State of Missouri where the agent is registered -cannot recommend securities to the customer because the agent is not registered in the State of Florida -cannot recommend securities to the customer unless the securities recommended are exempt from registration
cannot recommend securities to the customer because the agent is not registered in the State of Florida
A broker-dealer that is registered in New York and that is not registered in any other State may effect transactions in securities: -with any existing customer that is a New York resident that is vacationing anywhere in the United States -with any new customer that is a New York resident that is vacationing anywhere in the United States -with any New York resident located in any part of the United States -only in New York and not in any other State
with any existing customer that is a New York resident that is vacationing anywhere in the United States
