S63 REGISTRATION + LICENSING

All of the following information is included on an applicant's registration application EXCEPT: A. Educational history of applicant B. Business history of applicant C. Conviction record of applicant Incorrect Answer D. Financial condition of applicant

A. Educational history of applicant

The term "broker-dealer" includes which of the following? I A person in the business of trading securities for his own account or for the account of other persons II Agents who execute trades for broker-dealers III Financial Institutions regulated under federal banking laws IV Issuers of securities A. I only B. I and II C. III and IV D. I, II, III, IV

A. I only

Administrators can require minimum Net Capital and Net Worth for: A. Investment Advisers B. Investment Adviser Representatives C. Issuers D. Agents

A. Investment Advisers

A Canadian broker-dealer has some clients who move to Florida for the winter. The agent who services their accounts wants to be able to contact them when they are in Florida. Which statement is TRUE? A. Neither the Canadian broker-dealer nor the agent are required to be registered in Florida B. There is no requirement for the Canadian broker-dealer to be registered in Florida, but the agent must be registered in Florida C. The Canadian broker-dealer must be registered in Florida, but there is no requirement for the agent to be registered in Florida D. Both the Canadian broker-dealer and the agent must be registered in Florida

A. Neither the Canadian broker-dealer nor the agent are required to be registered in Florida

An investment adviser has its principal office in State A. It also has offices in States B, C, and D. The recordkeeping requirements of States C and D are more stringent than that required by State A and the recordkeeping rules of State B are the most stringent of all. The investment adviser is required to maintain its records in accordance with the rules of: A. State A B. State B C. State C D. State D

A. State A

Who is responsible for filing a U-5 Form with IARD when an investment adviser representative is terminated and associates with another advisory firm? A. The investment adviser that is the former employer is responsible B. The investment adviser that is the new employer is responsible C. The Investment adviser representative is responsible D. No one is responsible for notifying IARD when the investment adviser representative is terminated

A. The investment adviser that is the former employer is responsible

The president of a bank wishes to sell the subordinated debentures of that bank to individual investors. Under the provisions of the Uniform Securities Act, the president: A. is excluded from the definition of an agent B. must register as an agent of the issuer to do so C. must register as a broker-dealer to do so D. may sell the issue, but cannot receive a commission on the sale unless he or she becomes registered

A. is excluded from the definition of an agent

Under the Uniform Securities Act, an Investment Adviser CANNOT be required by the Administrator to: A. post a surety bond, if the Adviser will not take custody of customer funds or securities B. furnish information to the Administrator, if this is in the public interest and for the protection of investors C. file an amended Form ADV Part 2 promptly if the filing becomes incomplete or inaccurate in any material respect D. retain customer records in the format required by the Administrator

A. post a surety bond, if the Adviser will not take custody of customer funds or securities

If an agent changes his place of employment from one broker-dealer to another, the registration must be transferred: A. promptly B. within 5 days C. within 10 days D. within 30 days

A. promptly

An agent of a broker-dealer wishes to withdraw his registration. If there is a customer complaint, the Administrator: A. retains jurisdiction over the resigned agent for a period of 1 year B. retains jurisdiction over the resigned agent for a period of 3 years C. retains jurisdiction over the resigned agent for a period of 5 years D. has no authority over the agent as the agent is no longer employed by the broker-dealer

A. retains jurisdiction over the resigned agent for a period of 1 year

Under the Uniform Securities Act, "consent to service of process" means that the: A. Administrator is empowered to fine or penalize an agent or broker-dealer B. Administrator is authorized to receive suits on behalf of an agent or broker-dealer C. registrant is under the jurisdiction of the Administrator for up to 1 year after withdrawal from registration D. registrant cannot be compelled to give testimony in an investigation

B. Administrator is authorized to receive suits on behalf of an agent or broker-dealer

Under the Uniform Securities Act, which of the following individuals must file a registration application as an agent of a broker-dealer? I A person who only accepts orders from customers II A person who only trades securities for the firm's trading account III A person who is a silent partner in the broker-dealer IV A person who is a partner, officer, or director of a broker-dealer A. I only B. I and II only C. III and IV only D. I, II, III, IV

B. I and II only

Which of the following MUST notify the Administrator if an agent of a broker-dealer is terminated? I Agent II Ex-employer III FINRA IV SEC A. II only B. I and II only C. I, II, III D. I, II, III, IV

B. I and II only

Which statements are TRUE about the retention of customer account records for broker-dealers under Uniform State Law? I Customer trade confirmations must be retained for 3 years II Customer trade confirmations must be retained for 6 years III Customer account statements must be retained for 3 years IV Customer account statements must be retained for 6 years A. I and III B. I and IV C. II and III D. II and IV

B. I and IV

If a representative that transacts business in a State terminates employment with a Federal covered adviser, notice must be given to the Administrator by the: A. Federal Covered Adviser B. Investment Adviser Representative C. both the Federal Covered Adviser and the Investment Adviser Representative D. neither the Federal Covered Adviser nor the Investment Adviser Representative

B. Investment Adviser Representative

A CPA who acts as a solicitor for an investment adviser, referring clients to that adviser for a fee: A. must be registered with the SEC B. must be registered in the State C. must be registered with both the SEC and the State D. is not required to be registered with either the SEC or the State

B. must be registered in the State

Which statements are TRUE about registration as an agent? I Registration becomes invalid if the agent terminates employment with the broker-dealer II Registration is valid immediately after passing the Uniform Securities Exam III Registration is valid until December 31st of that year A. I only B. I and II C. I and III D. II and III

C. I and III

Which of the following broker-dealers is (are) NOT required to register 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 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 A. I and II only B. II only C. I, III, IV D. I, II, III, IV

C. I, III, IV

Which of the following persons would be defined as "sales representatives"? I A clerical employee of a broker-dealer who does not effect securities trades and does not receive commissions II A clerical employee of a broker-dealer who effects securities trades and receives commissions III A partner of a broker-dealer who does not effect securities trades and who receives commissions IV A partner of a broker-dealer who effects securities trades and who does not receive commissions A. I and II only B. III and IV only C. II and IV only D. II and III only

C. II and IV only

Which of the following is NOT EXCLUDED from the definition of an "investment adviser"? A. Broker-dealer B. Trust company C. Insurance company D. Savings and loan

C. Insurance company

A person makes an initial application for State registration on September 30th. Which statement is TRUE regarding the filing fee? A. The fee will be pro-rated and only 3/12ths of the annual fee must be paid B. The fee will be pro-rated and only 9/12ths of the annual fee must be paid C. The annual fee is not pro-rated and the full year filing fee must be paid D. No filing fee is due until the annual December 31st renewal

C. The annual fee is not pro-rated and the full year filing fee must be paid

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? A. These individuals are not required to be registered as representatives in State A because they are not ACME employees B. These individuals must register themselves as representatives in State A because they are not ACME employees C. These individuals must be registered as representatives in State A by ACME Securities D. These individuals only need to be registered in State A by ACME if they become full-time representatives

C. These individuals must be registered as representatives in State A by ACME Securities

A Federal Covered Adviser discovers a material error in its Form ADV. When must Form ADV be amended with the State to correct the error? A. Never B. Within 5 business days C. Within 30 calendar days D. On the SEC filing anniversary

C. Within 30 calendar days

Each sole proprietor that applies for initial registration in a State as either a broker-dealer or investment adviser must file: A. an annual personal income statement B. copies of federal tax returns for the prior 3 years C. a statement of financial condition D. proof of the sole proprietor's identity

C. a statement of financial condition

All of the following persons are defined as federal covered advisers EXCEPT: A. advisers with $100,000,000 or more of assets under management B. advisers to investment companies C. advisers to sophisticated investors D. advisers not subject to State regulation

C. advisers to sophisticated investors

A customer of a broker-dealer that is located in California moves to Nevada. The broker-dealer is registered in both States. The agent that handles the account wishes to remain the agent of record on the account. In order to do so, the agent: A. is not required to do anything B. must appear in front of the Nevada State Administrator C. must register in Nevada D. must file a dual registration on Form U-4

C. must register in Nevada

Which of the following individuals is NOT EXCLUDED from the definition of a "sales representative" under the Uniform Securities Act? A. An individual who represents an issuer in isolated non-issuer transactions B. An individual who represents an issuer in transactions with underwriters C. An individual who represents an issuer in transactions with financial institutions D. An individual who represents an issuer in transactions with investors

D. An individual who represents an issuer in transactions with investors

Investment advisers may be formed as: I Partnerships II Corporations III Associations A. I only B. II only C. III only D. I, II, III

D. I, II, III

The Administrator may require a new investment adviser who files a registration application in a State to: I Announce the opening of the advisory firm in the local newspapers II Pass an oral qualification examination III File with the Administrator any advertising or communications to be disseminated to the public A. I only B. II only C. II and III D. I, II, III

D. I, II, III

An agent registered under the Uniform Securities Act has his registration revoked by the Administrator. The Administrator may revoke any future applications of the person to be a(n): I Broker-dealer II Agent of a broker-dealer III Investment adviser IV Representative of an investment adviser A. II only B. I and II only C. III and IV only D. I, II, III, IV

D. I, II, III, IV

An individual wishes to form a broker-dealer as a sole proprietorship. Which of the following MUST be filed with the State? I Form BD II Consent To Service of Process III Surety Bond IV Filing Fee A. I and II only B. III and IV only C. I, II, III only D. I, II, III, IV

D. I, II, III, IV

The Administrator can deny, suspend or revoke registration of an agent's license for which of the following reasons? I The registration application omits a material fact that would have a bearing on the registration II The agent has intentionally delayed delivery of fully paid customer securities, using the securities for his own purposes III The agent's registration has been suspended in another state IV The agent has not paid required registration fees A. I and II only B. III and IV only C. I, II, IV D. I, II, III, IV

D. I, II, III, IV

The Administrator is empowered to deny, revoke or suspend the registration of any person who: I is insolvent II has failed to properly supervise employees III has been suspended by an Administrator of another State in the past 10 years IV has been convicted of embezzlement within the past 10 years A. I and II only B. III and IV only C. II and IV only D. I, II, III, IV

D. I, II, III, IV

The Administrator is empowered to revoke the registration of an investment adviser if the investment adviser: I has ceased operating as a business in that State II has been judged to be mentally incompetent III has relocated, and has not notified the Administrator of the new business location IV fails to pay required filing fees to the State A. I and II only B. III and IV only C. I, II, III D. I, II, III, IV

D. I, II, III, IV

NASAA has the power to set record retention rules for a Federal Covered Adviser that cover which of the following records? I Communications to 2 or more persons II E-mails to clients III Trial balances IV General ledger A. I and II only B. III and IV only C. I and IV only D. None of the above

D. None of the above

Which statement is TRUE? A. Both password-protected and non-password protected websites are defined as advertising B. Both password-protected and non-password protected websites are defined as sales literature C. Password-protected websites are defined as advertising and non-password protected websites are defined as sales literature D. Password-protected websites are defined as sales literature and non-password protected websites are defined as advertising

D. Password-protected websites are defined as sales literature and non-password protected websites are defined as advertising

An agent of a broker-dealer has her office in State A and has customers in States B and C, in which she is also registered. She has a group of customers who are dual citizens of the U.S. and Chile and has been referred business in Chile by some of these clients. To sell securities to these clients in Chile, she files a registration application with the Chilean securities regulator, who denies the application. Which statement is TRUE? A. The action of the Chilean securities regulator has no bearing on this individual's State agent registrations B. The action of the Chilean regulator can cause the Administrator of State A only to revoke her registration C. The action of the Chilean regulator can cause the Administrators of States B and C only to revoke her registration D. The action of the Chilean regulator can cause the Administrators of States A, B and C only to revoke her registration

D. The action of the Chilean regulator can cause the Administrators of States A, B and C only to revoke her registration

The Administrator can be under the obligation to file a U-6 Form for all of the following reasons EXCEPT: A. a written complaint about an investment adviser representative is received from a customer that alleges a felony B. a cease and desist order was entered by the Administrator against an investment adviser representative, barring the IAR from soliciting advisory business in the State C. an investment adviser representative was the subject of a monetary sanction imposed by a court of law in the State D. an investment adviser representative is the subject of oral complaint from a customer alleging that the IAR made performance guarantees that were never realized

D. an investment adviser representative is the subject of oral complaint from a customer alleging that the IAR made performance guarantees that were never realized

Surety bond coverage can be required by the Administrator as a condition of registration for all of the following EXCEPT: A. broker-dealers B. investment advisers C. agents D. issuers

D. issuers

Prior to licensing an agent in a State, the Administrator may require the agent to do all of the following EXCEPT: A. pass a qualifying examination B. certify that the individual has reviewed that State's Blue Sky laws C. certify that the individual understands his responsibilities D. maintain a minimum Net Worth requirement

D. maintain a minimum Net Worth requirement