S63 - Final Review

Who doesn't have to register as an agent

Any individual selling securities on behalf of an issuer of certain exempt securities (bank securities are in that list) is not an agent under the USA

Administrator jurisdiction over TV and newspaper offers

The Administrator does not have jurisdiction over an offer made in a TV or radio broadcast that originated outside of the state. The same is true for a newspaper published outside the state.

Agent registration based on offers made to residents on vacation in other states

The USA only requires that an agent be licensed in the state of permanent residence of the client

Time an agent has to file an appeal of disciplinary action by the administrator

Under the USA, a registered person has up to 60 days to appeal any disciplinary finding by the state Administrator.

When does a customer have to receive the Options Disclosure Document

before the first order

3 primary expenses involved with brokerage accounts that are not included in the fee disclosure template

commissions; markups and markdowns; and advisory fees for those first that are also registered as investment advisers

Out-of-state investment advisers with no office in this state are not required to be registered if only giving advice to

insurance companies, registered investment companies, banks or other institutional investors, broker-dealers, and other investment advisers.

Not securities under USA

insurance or endowment policies; IRA or Keogh; collectibles; commodities; condominiums used as personal residence; currency

questions when opening option accounts

investment experience and knowledge (e.g., number of years, size, frequency, and type of transactions) for options, stocks and bonds, commodities, and other financial instruments.

One of the major differences between identity theft and physical theft is that in the case of identity theft

it might not be discovered for some time

An individual walks into the office of a broker-dealer wishing to open a new account. Which of the following information would NOT be required on the new account form?

marital status "may include" but not required like address, employer, and citizenship

notice filing for federally covered advisors

must make a notice filing if they have a place of business in the state or have 6 or more retail clients in the state in a twelve-month period

de minimis exemption for investment advisors

no place of business in the state and five or fewer clients that are legal residents in the state during the preceding 12 month period

Pension fund registration

pension fund managers who manage more than 200M or more are eligible to register with the SEC, otherwise they register with the state

Soft dollar compensation

provision of services (soft) rather than money (hard) to investment advisers by broker-dealers to thank them for directing advisory client's securities transactions to them. Section 28(e) of the Securities Exchange Act of 1934 permits this activity and has, in fact, created a safe harbor for those services that benefit the client. Included in that safe harbor is software that benefits the client.

Administrator jurisdiction

state Administrator has jurisdiction over any securities offer made in their state. A securities offer is deemed to be made in a state if it originates in a state, directed by an offeror to a state, and received at the place it is directed, or accepted in a state.

When an administrator may deny or revoke a security's exemption

without a hearing if the issuer is given an opportunity for a hearing after the revocation, but not federal covered securities