Series 63 set#2
A client wants to invest a rollover from a 401(k) account into an IRA upon retiring. Which of the following choices would be the most suitable recommendation? A. A large-cap stock fund B. A balanced fund C. Treasury bonds D. An annuity
B Explanation: A person who has just retired is presumably seeking income. However, it may be advisable to invest a portion of her assets in growth-oriented investments as well since she may be retired for 20 to 30 years. Of the choices given, a balanced fund, which invests in both stocks and bonds, is the best answer. A balanced fund would provide the investor with both income and capital appreciation because it invests in both stocks (appreciation) and debt securities (income). A large-cap stock fund, choice (a), would provide capital appreciation, but probably little income. It would also be risky. Treasury bonds, choice (c), would provide safety and income, but little appreciation. An annuity, choice (d), would probably have a surrender period and high expenses. Additionally, the annuity provides tax-deferred income. Therefore, buying an annuity in an IRA or other tax-deferred account would be counter-productive.
You are employed by a bank with the title financial adviser. In your capacity at the bank, you are required to hold a general securities registration in order to provide information on securities and to process orders. Your sponsoring broker-dealer is an affiliated firm owned by the bank holding company that also owns the bank you work for. A client comes to the bank seeking advice on certificates of deposit offered by the bank as well as mutual fund investments. Under the Uniform Securities Act, which of the following choices BEST describes what you are allowed to do when giving advice to the client? A. You are not allowed to advise the client since the bank is not an investment adviser B. You may give the client advice since the broker-dealer and the bank are excluded from the definition of an investment adviser C. You may give the client advice only on the mutual funds since certificates of deposit are governed by banking rules and you are registered with a broker-dealer D. You may not give advice on the certificates of deposit since the bank is not a registered investment adviser
B Explanation: Since both the bank and the broker-dealer are excluded from the definition of an investment adviser, you may provide advice on these products without registering as an investment adviser or investment adviser representative. You are acting within the scope of your employment with the broker-dealer.
A broker-dealer is registered in State A. Which TWO of the following statements are TRUE regarding the examination of that broker-dealer's records by the Administrator of State A? l. The Administrator may examine the broker-dealer's records even if they are located in State B ll. If the records are located in State B, the Administrator of State A must obtain the consent of the Administrator of State B to examine the records lll. The Administrator may examine the broker-dealer's records under any circumstances llll. The Administrator may examine the broker-dealer's records with good reason A. I and III B. I and IV C. II and III D. II and IV
B Explanation: The Administrator may examine the broker-dealer's records even if they are located in another state. Cooperation from the Administrator of the other state is not required. Although the Administrator's inspections may be unannounced, such examinations must be reasonable.
Under the Uniform Securities Act, a person's registration may be revoked or denied for which of the following reasons? l. The person was convicted of a non-securities-related misdemeanor three years ago ll. The person was convicted of a drug-related felony seven years ago lll. There is mounting evidence that the individual is involved in a securities-related fraud llll. The person was convicted of a securities-related misdemeanor six years ago A. I and IV only B. II and IV only C. II and III only D. I, II, and IV only
B Explanation: Under the Uniform Securities Act, the Administrator may deny, revoke, cancel, or withdraw the registration of any person if he has been convicted within the past 10 years of any felony or any misdemeanor involving a security. The Administrator may not take any action if a person has been accused or indicted, but has not been convicted.
The president of a biotechnology company is selling his corporation's convertible bonds to the public, and is not receiving compensation. In this capacity, he is considered to be: A. A broker-dealer B. An agent of the issuer C. An agent of a broker-dealer D. Excluded from the definition of an agent
B Explanation: Correct. Persons who represent non-exempt issuers in sales to the public are defined as agents and must be registered whether or not they receive compensation. Persons who represent non-exempt issuers in sales to existing employees are only defined as agents (and must be registered) if they receive compensation related to the transaction(s)
Michael is dually registered as both an agent and an investment adviser representative. Michael receives fees for giving investment advice and a commission for each investment product that the client agrees to purchase as a result of his advice. Which of the following statements is TRUE? A. This practice is a conflict of interest and is prohibited according to the NASAA model rule B. This practice is not prohibited as long as it is fully disclosed in the adviser's brochure C. This practice is acceptable if the investment adviser and the broker-dealer are affiliated D. This practice is acceptable as long as the commissions are reasonable
B Explanation: Correct. This practice is a conflict of interest. However, according to the NASAA model rule on Prohibited Conduct of Investment Advisers, Investment Adviser Representatives and Federal Covered Investment Advisers, this practice is allowed as long as it is disclosed to clients. This disclosure would normally be part of the adviser's brochure.
A client is traveling and would like her investment adviser representative to pay some personal bills while she is away. Under the Uniform Securities Act, such an activity: Should be backed up in writing Constitutes custody Falls outside the scope of securities market regulations A. I only B. I and II only C. II and III only D. I, II, and III
B Explanation: Correct. When an investment adviser has access to customer funds and securities, custody exists. Investment advisers would not normally pay personal bills such as rent, credit card, or cable television on behalf of their clients. Written authorization is required for this type of activity and usually is referred to as full discretionary authority. Custody arrangements are covered by securities regulations.
Which of the following statements is TRUE concerning a federal covered security? A. The Administrator may require the issuer to pay a registration fee B. The Administrator may subject the issuer to a state review C. The Administrator may not require the issuer to file a consent to service of process D. The Administrator may not bring enforcement action if fraud is involved
A Explanation: The Uniform Securities Act sets limits on the powers of the Administrator concerning federal covered securities. The Administrator may require: the paying of a registration fee, the filing of a Consent to Service of Process, the filing of certain documentation previously filed with the SEC. The Administrator may bring enforcement action if fraud or deceit is used in the sale of a security. The Administrator may not subject the issuer to a state review. This occurs when a state has the authority to allow or disallow a security to be offered in a state and is sometimes referred to as a merit review.
The Administrator has the right to deny, revoke, or suspend the registration statement of an issuer of securities. Under the Uniform Securities Act, which issuer(s) may be subject to this action? l. A company whose securities are listed on the Canadian National Exchange ll. A nonprofit corporation lll. A credit union llll. A municipality A. I only B. I and II only C. I, II, and III only D. I, II, III, and IV
A Explanation: The other entities listed issue exempt securities. As a result, they would not be required to file a registration statement.
An agent of a broker-dealer is also employed as an investment adviser representative. A client asks the agent for assistance in placing the shares of his start-up company's initial public offering (IPO). Under what conditions may the agent accept the client's offer of commissions for completing the offering? A. Only with the written permission and supervision of the broker-dealer B. Only when the purchases are made by clients of another broker-dealer C. Only if a separate set of books and records is used to track these trades independently from the trades of other clients D. Only if disclosure is made to the clients that this investment will not appear on their statements
A Explanation: This is an allowable action provided written permission is obtained from the supervising broker-dealer and the transactions are recorded on the broker-dealer's books and records. If the agent fails to notify her firm, it is considered selling away, which is an unethical and prohibited business practice.
The Administrator of State X has begun an investigation of your investment adviser firm. You work at the home office in State Y and are registered as an investment adviser representative in State Y. You have received a subpoena to testify at a hearing in State X. Your supervisor states that you cannot be compelled to appear since you are not registered in State X. Which of the following statements is TRUE of this situation? A. You must comply with the subpoena and testify B. You are not compelled to appear, however, your state Administrator can compel you to appear in your home state C. Your supervisor must appear in any state in which the firm is registered to represent the firm's employees D. Prior to appearing, your firm must now register you in State X due to the subpoena from the Administrator
A Explanation: Correct. According the Uniform Securities Act, no person is excused from attending and testifying in response to a subpoena, regardless of his registration status. No individual can be prosecuted or subjected to any penalty for testifying.
An agent holding full discretionary authority over a customer's account may: Buy or sell securities in the account without consulting the customer Receive a fee for using his discretion in trading the account Withdraw money from the account Borrow assets from the customer's account A. I and III B. I and IV C. II and III D. II and IV
A Explanation: Correct. An agent holding full discretionary authority over a customer's account may buy or sell securities in the account without consulting the customer and may withdraw money from a client's account. An agent may not receive a fee for using his discretion in trading a customer's account. Borrowing client assets is never allowed.
According to the Uniform Securities Act, who would be considered a broker-dealer in State B? A. A sole proprietor located in State A who has several clients in State B B. A corporation domiciled in State B that also issues securities within that state C. A brokerage firm registered in State A that does not have an office in State B and does business exclusively with other broker-dealers in State B D. An agent employed by a brokerage firm in State A who cold-calls clients in State B
A Explanation: A sole proprietor can be a broker-dealer. If a sole proprietor located in State A chooses to effect transactions for clients in State B, he must register in State B as a broker-dealer. Agents and issuers are not broker-dealers, choices (b) and (d). Neither is an entity without a place of business in a state that deals only with institutional investors, choice (c)
All of the following persons are excluded from the definition of investment adviser, EXCEPT: A. An attorney who sets up a financial planning practice B. A tax accountant who evaluates clients' portfolios as part of his annual tax review C. An engineer who receives fees for consulting services on stock offerings of aerospace companies for broker-dealers D. An economics professor who teaches classes in portfolio analysis
A. Explanation: Lawyers, accountants, teachers, and engineers are not considered investment advisers if they provide financial advice that is incidental to the practice of their profession. However, when any of these entities starts to charge a fee for their advice, they lose the exemption and must register as an investment adviser. In this question, there are two possible answers. Just as with the real exam, you need to pick the one that is MOST correct. In choice (a), a lawyer is setting up a financial planning practice. This is not incidental to the practice of law. The lawyer is offering financial advice for a fee, an activity that requires registration. In choice (c), the engineer is offering consulting services, not financial advice. Choices (b) and (d) are not services that constitute offering financial advice for a fee.
According to the Uniform Securities Act, an employee who is not registered as an agent may do which of the following? A. Clear transactions B. Accept unsolicited orders on behalf of an agent C. Participate in an exempt transaction with a registered agent D. Participate in the distribution of an exempt security
A. Explanation: Incorrect. A person need not be registered as an agent to post records (clear transactions) or perform operational tasks.
An agent opens a new account for a client and enters a market order to buy 200 shares of XYZ. At the end of the day, the agent turns in a new account form and a copy of the order ticket for approval by the supervisor. Which of the following statements is TRUE? A. The agent's activities are not prohibited B. The agent needed approval for the new account prior to the execution of the first order C. The activity is prohibited and the agent must get prior approval for every order D. The activity is prohibited because new clients must pay for their first transaction in advance
B. Explanation: Although prior approval from a supervisor is not required for every order, every new account must be approved by a supervisor prior to the execution of the first order.
Under the National Securities Markets Improvement Act (NSMIA) investment advisers are required to register at the state level or the federal level, unless exempt. Which TWO of the following statements are TRUE regarding investment advisers with $95 million of assets under management? They generally must register in any states in which they will conduct business. They are exempt from state registration. They must register with the SEC if the state in which they conduct business has no requirement for registration of investment advisers. They generally must register with the SEC if their clients are all retail investors. A. I and II B. I and III C. I and IV D. II and III
B. Explanation: NSMIA, the National Securities Markets Improvement Act, was created to eliminate some of the dual requirements of federal and state securities law. Investment advisers with less than $100 million of assets under management (AUM) are generally exempt from federal or SEC registration and are required to register at the state level. If the state in which the adviser conducts business does not provide for the registration of investment advisers, they must register with the SEC. Investment advisers with AUM of $100 million up to $110 million may register with the SEC. If the adviser's AUM exceed $110 million, it must register with the SEC. An investment adviser registered with the SEC is referred to as a federal covered adviser.
According to the Uniform Prudent Investor Act (UPIA), a trustee is prohibited from making which of the following investments on the trust's behalf? A. Collateralized mortgage obligations (CMOs) B. A second mortgage on property owned by a real estate partnership for which the trustee is the general partner C. Shares in a publicly traded Fortune 500 company on whose board of directors the trustee serves D. Nontraded real estate investment trusts (REITs)
B. Explanation: Correct. The UPIA does not categorically prohibit any class of investments. Thus, a trustee could invest a portion of trust assets in CMOs or nontraded REITs, or second mortgages. A trustee is a fiduciary and, as with all fiduciaries, has a duty of loyalty. He is not permitted to use the trust to pursue his own financial interests. It would be a conflict of interest for the trustee to use the trust assets to get a second mortgage for a piece of property in which he has a significant interest. Choice (c) also describes a potential conflict of interest, but a much smaller one.
A broker-dealer is opening securities accounts for retail customers at a bank branch. According to the NASAA Model Rules for Sales of Securities at Financial Institutions, what must the broker-dealer's agents do as part of the account opening process? A. Verify that the client is a qualified investor B. Provide the client with a written copy of the networking arrangement between the broker-dealer and the bank C. Make a reasonable attempt to obtain a written acknowledgement from the client that he has received the disclosures required under this rule D. Notify the client of the address and telephone number of the state securities Administrator where he can lodge complaints
C Explanation: The NASAA Model Rules for Sales of Securities at Financial Institutions state that a broker-dealer must make a reasonable attempt to obtain a written acknowledgement from a customers that he has received the disclosures required under these rules. Under NASAA rules, a client who opens a brokerage account at a bank must be informed both orally and in writing, that securities: Are NOT insured by the FDIC (Federal Deposit Insurance Corporation) Are NOT the same as bank deposits or obligations and are not guaranteed by the bank Have risks—the investor may lose her principal A networking arrangement means a contractual or other arrangement between a broker-dealer and a financial institution pursuant to which the broker-dealer conducts broker-dealer services on the premises of the financial institution where retail deposits are taken. A copy of this document does not need to be provided to clients. There is no requirement that a client be verified as a qualified investor. There are no qualifications to be an investor. An agent may notify the client of the address and telephone number of the state securities Administrator where the client can lodge complaints, but it is not a requirement.
An employee of XYZ Corporation is selling common stock to the public but is not being paid a commission. Under the Uniform Securities Act, which of the following statements is TRUE? A. The employee would be considered an agent of a broker-dealer and would need to register B. The employee would be considered an agent of a broker-dealer but would not need to register C. The employee would be considered an agent of the issuer and would need to register D. The employee would be considered an agent of the issuer but would not need to register
C Explanation: Under the Uniform Securities Act, an individual representing a nonexempt issuer in sales to the public is defined as an agent of the issuer (XYZ Corporation) and must register as such whether or not compensation has been paid. Conversely, if the transactions are with existing employees, directors, or partners of the issuer, and no compensation is paid for soliciting any person in the state, then the employee is not required to register
Under the Uniform Securities Act, which of the following persons engaged in the business of advising others regarding securities investments is NOT excluded from the definition of an investment adviser? A. A bank, savings institution, or trust company B. A licensed broker-dealer whose advice is incidental to its business C. A person whose advice relates only to exempt securities D. None of the above
C Explanation: Correct. This is an example of a question that must be read very carefully. When you are asked "Who is NOT excluded?" you are essentially being asked, "Which one of these might be considered an investment adviser?" ("Not excluded" means "Which ONE of the following".) The Uniform Securities Act does not provide an exclusion for persons whose advice relates only to exempt securities. They are still covered under the definition of an investment adviser. Persons (entities) who are banks, savings institutions, or trust companies are not considered investment advisers and, consequently, do not need to register as investment advisers. Broker-dealers whose investment advisory services are incidental to their normal course of business, and who receive no special compensation for the advice, are exempt from registration as investment advisers.
Advertising and sales-related materials would need to be filed with the Administrator in which of the following circumstances? A. The materials relate to transactions with institutional investors B. The securities were issued by a common carrier C. The securities are listed on a foreign exchange D. The materials relate to federal covered securities
C. Explanation: In general, all advertising and sales-related materials created by broker-dealers and investment advisers must be filed with the Administrator. If the security or the transaction is exempt under the Act or is a federal covered security, the materials do not need to be filed with the Administrator. Any transaction with an institutional investor is an exempt transaction. A security issued by a common carrier is an exempt security. As a reminder, a common carrier is an entity that moves people or products between states, and is regulated by the Interstate Commerce Commission, for example, freight companies, railroads, and airlines. According to the NASAA Model Rules, securities listed on the Toronto Exchange, and the TSX Venture Exchange (Canada) are exempt. Securities listed on other foreign exchanges are not exempt automatically.
Under the Uniform Securities Act, the Administrator may waive the requirement that a broker-dealer maintain a bond: A. When the registrant has paid the annual filing fee B. When the registrant's net worth exceeds a certain amount C. When the registrant's net capital exceeds a certain amount D. When the broker-dealer accepts only unsolicited orders
C. Explanation: IA = net worth BD = net capital Administrators are given flexibility to determine whether a bond is needed. The Uniform Securities Act states that an Administrator may waive the requirement that a broker-dealer maintain a bond if the registrant's net capital exceeds a certain amount. Investment advisers must maintain a minimum net worth.
Which of the following practices is NOT prohibited under the Uniform Securities Act? A. An agent making an untrue statement of a material fact B. An agent omitting a material fact because the agent did not have time to cover everything in a short presentation C. An agent deliberately failing to follow a client's instructions D. An agent actively soliciting orders in unregistered exempt securities
D Explanation: If a security is exempt, it does not need to be registered. All other choices would be considered prohibited practices under the Uniform Securities Act.
A bank president is selling his bank's debentures to banking clients. In this capacity, he is considered to be: A. A broker-dealer B. An agent of the issuer C. An agent of the broker-dealer D. Excluded from the definition of agent
D Explanation: Those persons representing the issuer, who are involved in the direct marketing of certain exempt securities, are excluded from the definition of a securities agent. This includes persons representing the issuers of bank securities, commercial paper, municipal bonds, securities of other governmental bodies, and employee benefit plans (A full, detailed list is included in your Study Manual and we recommend that you review that list before your exam). In this scenario, since the bank president is selling his own bank's securities, these securities are exempt. This is why he is not an agent of the issuer.
You are the chief financial officer of Colfax Advisers, LLC, a registered investment adviser located in Dallas, Texas. Your firm manages portfolios and has safekeeping services for its clients. The state of Texas requires that all registered advisers who have custody of client assets, maintain a minimum net worth of $35,000. In reviewing the month-end financials for the firm, you calculate the current net worth at $32,875. What would your best course of action be considering these circumstances? A. Increase net worth to $35,000 and notify the Administrator of the increase B. Notify the Administrator and post a $35,000 bond C. Cease operations in the state and file a notice of withdrawal D. Notify the Administrator within one business day and file a statement of financial condition
D Explanation: Correct. If the investment adviser's net worth drops below the required minimum (as set by the Administrator), the adviser must file a deficiency notice with the Administrator within one business day and also file a report on its financial condition.
Which of the following actions by an agent of a broker-dealer is considered an unethical business practice? A. Soliciting a client to sell a specific security while simultaneously recommending to another client to buy the same security B. Accepting an unsolicited trade for an unregistered, nonexempt security C. Placing a discretionary order in a margin account D. Selling shares in a friend's business outside the agent's normal course of employment
D Explanation: Correct. It is considered an unethical business practice for an agent of a broker-dealer to effect transactions in securities and not record them on the books of the broker-dealer. While choice (d) doesn't clearly state that the agent is failing to notify the broker-dealer, it can be inferred from the phrase "outside the agent's normal course of employment." The other choices represent honest and ethical activities that agents of a broker-dealer should take regarding transactions by their clients.
Which of the following entities are defined as persons according to the Uniform Securities Act? A. A partnership B. A government entity C. An unincorporated organization D. All of the above
D Explanation: Correct. Under the USA, the term person includes legal entities, such as corporations, partnerships, associations trusts, unincorporated organizations, and government bodies and their political subdivisions.
An agent receives a letter from an irate client. The letter is the fifth in the last six months and the language is abusive. The agent forwards it to his supervisor. The supervisor decides against a reply and discards the letter. In this instance, which of the following statements is TRUE? A. The supervisor is entitled to decide how to handle such situations B. If the supervisor forwards the complaint to the Administrator, this is acceptable C. The Uniform Securities Act requires that all material complaints be forwarded to the Administrator D. The Uniform Securities Act requires that a response be made to all written complaints
D Explanation: Correct. When an agent receives a complaint in writing, it must be forwarded to a designated supervisor. The complaint must be kept on file, along with any action taken to remedy the complaint. The fact that the complaint was the fifth in the last six months and the language abusive has no bearing on how the complaint should be handled. By discarding the letter, the supervisor acted in a prohibited and improper manner.
All of the following documents may need to be filed with the Administrator, EXCEPT: A. A prospectus for a limited partnership B. A pamphlet for an oil and gas program C. A brochure for a mining company D. An offering circular for an endowment policy
D Explanation: Incorrect. The Administrator may require the filing of sales and advertising literature for securities investments. Limited partnerships, oil and gas programs, and mining companies issue securities. Endowment policies are insurance products, not securities.
A brokerage firm that operates on the premises of a bank must do all of the following, EXCEPT: A. Locate its activities in a separate area if possible B. Conspicuously display its name in the area where it conducts business C. Make sure its services are easily distinguished from the services provided by the bank D. Disclose that it is a member of both FINRA and the FDIC
D. Explanation: A brokerage firm would be a member of FINRA, but not the FDIC. The firm must do all of the things listed in the other choices.
According to the Uniform Securities Act, which of the following persons has authority over a securities transaction? l. The Administrator in the customer's home state ll. The Administrator in the broker-dealer's home state lll. The Administrator in the state where the transaction occurred A. I and II only B. I and III only C. II and III only D. I, II, and III
D. Explanation: Any or all of the Administrators listed could have authority over the transaction.
Under the Uniform Securities Act, which of the following issuers must file a registration statement with the state Administrator? l. Corporations with stock listed on the Toronto Stock Exchange ll. Federal Savings and Loan Associations lll. Federal credit unions llll. For-profit corporations A. I and IV only B. II and III only C. I, II, and III only D. IV only
D. Explanation: Choices (II) and (III) are exempt issuers and would not be required to file a registration statement. Nonexempt securities would be subject to this rule. Stock listed on most foreign exchanges must be registered, but there is an exemption for stock listed on the Toronto Stock Exchange, choice (I), and TSX Venture Exchange. Stock issued by for-profit companies would need to be registered.
A client and an agent are close personal friends. The client places an order for a new issue of stock that the agent's firm is underwriting. The client does not have enough money to pay for the stock on the settlement date. The agent deposits enough of her own funds in the client's account to cover the shortfall, which the client pays back within five business days following settlement. Which of the following statements is TRUE? A. Since the loan was repaid within five business days following settlement, this is not a violation of the Uniform Securities Act B. Because the agent extended the loan as a friend and not as an agent of the broker-dealer, this activity is acceptable C. This may be undertaken only if the broker-dealer grants permission in writing prior to settlement of the trade D. This is not an acceptable practice
D. Explanation: Correct. Under the Uniform Securities Act, this is never acceptable. It is considered an unethical practice for agents to engage in the practice of lending to or borrowing money or securities from a customer.
Under the Uniform Securities Act, which of the following issuers are NOT required to file a registration statement with the state Administrator? Companies with stock quoted on the Over-The-Counter Bulletin Board (OTCBB) Federal savings and loan associations Registered investment companies Companies registered with the Securities and Exchange Commission (SEC) A. II and III only B. I and IV only C. II, III, and IV only D. I, II, III, and IV
Explanation: Correct. Choice (II) is an exempt issuer and would not be required to file a registration statement. Choice (III) is an issuer of federal covered securities and would not be required to file a registration statement. It may, however, need to notice-file with the Administrator. Notice filing applies to certain federal covered securities. The notice filing includes the Consent to Service of Process, payment of a filing fee, and may include copies of material filed with the SEC as part the issuer's federal registration. This is NOT considered a registration. With regards to choices (I) and (IV), companies that register with the SEC may still be required to file a registration statement with the Administrator -- for example, securities that are quoted on the Over-The-Counter Bulletin Board (OTCBB).
According to the Uniform Securities Act, is an agent of a broker-dealer required to provide its clients with disclosure of a material public fact about an issuer? A. No, since the fact has already been made public and is in the news B. No, since the agent's broker-dealer must check the fact first and preapprove any disclosure C. Yes, firms must provide clients with a written disclosure of all facts for decision-making purposes D. Yes, if the agent's other comments to the customer could be considered misleading without the additional public information
Explanation: Correct. Material facts are the facts that investors need in order to make informed investment decisions. Agents should make a good faith effort to fully and fairly disclose all material facts during sales presentations. While it may not be possible to disclose every fact, omitting a material fact in order to make an investment appear more attractive is a violation.
According to the Uniform Securities Act, if a prospective agent has an impaired financial condition, the Administrator may: A. Issue an indictment B. Deny registration C. Require a Consent to Service of Process D. Require an amendment to Form ADV
Explanation: Correct. The Administrator may deny the agent's registration because the prospective agent is insolvent. Indictments are criminal charges for alleged violations of the law. The Consent to Service of Process is required for all registrants. Form ADV is filed by an investment adviser, not an agent.
Rules created based on interpretations of the Uniform Securities Act may be rescinded or amended by the Administrator: A. With prior approval from the SEC B. As mandated by Congress C. With prior approval from the state legislative governing body D. To carry out any of the provisions of the Act at any time the Administrator feels it necessary
Explanation: Incorrect. The Administrator does not need prior approval to rescind or amend its rules, which interpret specific provisions of the Act. The Act itself may only be amended by each state's governing legislative body.
