Unit #5: Remedies and Administrative Provisions
All of the following practices are prohibited by the Uniform Securities Act EXCEPT 1. borrowing money from a customer without the customer's written permission 2. failing to determine the suitability of an investment for a customer 3. offering rescission 4. telling a customer that past history of an investment is not indicative of future results A) III and IV B) II and III C) I and II D) II and IV
A) 3 & 4 *Offering rescission and explaining that past performance is not necessarily a predictor of the future are permissible actions under the USA.
Under the Uniform Securities Act, each of the following statements regarding a sale, an offer, or an offer and sale is true EXCEPT A) a bona fide pledge is considered an offer and sale B) a purported gift of assessable stock is considered to involve an offer and sale C) any security given or delivered, with or as a bonus for any purchase of securities, is considered to have been offered and sold for value D) every sale or offer of a warrant or stock right to purchase or subscribe to another security is considered to include an offer of the other security
A) A Bona fide pledge is considered an offer and sale *The term "sale" does not include a bona fide pledge. It does, however, include securities given as a bonus with a purchase and gifts of assessable stock because the owner of the stock may be called on to produce additional money. Sales of rights or warrants are considered sales of the underlying security.
After conducting an investigation, if the Administrator believes that a violation of a rule issued under the Uniform Securities Act is about to occur, she may A) issue a cease and desist order without prior hearing B) issue a court order requiring the alleged violator to make restitution to the victim C) issue a court order to have a receiver appointed over an investment adviser's assets D) levy a fine against an alleged violator prior to any conviction on criminal charges
A) Issue a cease and desist order without prior hearing. *If the Administrator believes that a violation of the act or any rule or order under the act is about to occur, the Administrator may issue a cease and desist order without prior hearing. The Administrator cannot issue injunctions or levy a fine, because those are under the jurisdiction of the courts. Only courts can issue court orders.
Which of the following is TRUE regarding a state Administrator's authority? A) With certain limited exceptions, the Administrator has authority over any transaction made in the state where officiating. B) The Administrator may suspend an agent's license based solely on the public good doctrine. C) The Administrator's subpoena power covers that state only where officiating. D) If a specific securities transaction meets the USA's definition of "exempt transaction," the Administrator does not have the power to void that exemption.
A) With certain limited exceptions, the Administrator has authority over any transaction made in the state where officiating. *With certain limited exceptions, a state Administrator has jurisdiction over securities transactions conducted in the officiating state. The Administrator may issue subpoenas or otherwise conduct inspections of records in states other than where officiating if circumstances warrant. Such inspections may be made if the Administrator deems doing so to be in the public's interest. A person's license can only be suspended when it is in the public interest AND a specific provision of the act or rules has been violated. Only in the case of a transaction involving a federal covered security does the Administrator not have the power to void the exemption.
If an agent chooses to appeal an Administrator's order, the agent must file for review of the order with the appropriate court A) within 60 days of order entry B) within 30 days of order entry C) within 180 days of order entry D) immediately
A) Within 60 days of order entry *Under the USA, a registered person has up to 60 days to appeal any disciplinary finding by the state Administrator.
A broker-dealer sends an email to all of its clients stating that anyone purchasing at least 100 shares of an IPO that has just become effective will receive, at no additional cost, a bonus of 10 shares of a Nasdaq traded stock. Under the Uniform Securities Act, delivery of this stock to a qualifying client would represent A) a sale B) a prohibited transaction C) an offer D) a gift
A) a sale *The USA states that, "any security given or delivered with, or as a bonus on account of, any purchase of securities or any other thing is considered part of the subject of the purchase and to have been offered and sold for value."
An Administrator may take disciplinary action against a broker-dealer or its agents when the Administrator 1. determines that the action is in the public interest 2. suspects that the registrant's action violated a rule, order, or the USA 3. issues an injunction that carries the force of law 4. provides for a public hearing, which must precede issuing a cease and desist order A) II and III B) I and II C) I and III D) III and IV
B) 1 & 2 *An Administrator may take disciplinary action against a broker-dealer or its agents when the Administrator determines that the action is in the public interest and suspects that the action violated a rule, order, or the Uniform Securities Act. An Administrator may act upon suspicion that a violation of a rule, order, or provision of the Uniform Securities Act is about to occur. Administrators cannot issue injunctions; they must seek injunctions from a court of competent jurisdiction. Administrators need not conduct public hearings before issuing a cease and desist order.
Which of the following is NOT considered a valid receipt of an offer to buy or sell securities in this state under the Uniform Securities Act? A television broadcast transmitted from a neighboring state A radio broadcast transmitted from in a neighboring state A newspaper advertisement in a paper published in the state but which has over 2/3 circulation outside the state A) I and III B) I, II, and III C) II and III D) I only
B) 1, 2, & 3 *Offers are not considered to have been made by a radio or television program originating outside the state, bona fide newspapers or magazines published outside the state, or bona fide newspapers or magazines published within the state if more than 2/3 of its circulation is outside the state.
John was convicted 5 years ago of failure to pay child support, a misdemeanor in his home state. John would now like to register as an IAR in a neighboring state where that crime is considered a felony. Under the Uniform Securities Act, the Administrator of the neighboring state will A) consider John to be statutorily disqualified because in this state his crime is a felony B) disregard that conviction when determining John's qualifications for registration C) consider granting registration to John, but only if he receives heightened supervision D) determine John's status on the basis of the extent to which his child support payments are being paid
B) Disregard that conviction when determining John's qualifications for registration. *The conviction on John's record is for a non-securities-related misdemeanor. The fact that the same crime is a felony in another state is not relevant to John's application for registration in that state.
Dashboard SecuritiesPro QBank UNIT 5B QBank HomeScore: 33% Question #10 of 15 Question ID: 1353396 An agent is registered in New York and Vermont. While working in his New York office, he places a call to the cell phone of one of his clients, who happens to be on vacation in Ohio. After describing the reasons for a particular stock recommendation, the client asks the agent to call back tomorrow. The agent does so and reaches the client in Indiana. The client decides to purchase 100 shares of the stock. When the client arrives home, he notices that he has already received his stock certificate from the transfer agent located in Illinois. In this case, which Administrators do not have jurisdiction? A) Indiana and Illinois B) Illinois and Ohio C) New York and Indiana D) Ohio and Indiana
B) Illinois and Ohio *The Administrator has jurisdiction from the state in which the offer originated (NY) and was accepted (IN). Mailing of the certificate is of no consequence. Ohio does not have jurisdiction because the client was merely traveling and the call was directed to the New York number.
Under the Uniform Securities Act, violations of the act may result in criminal penalties of up to A) $1,000 B) $5,000 C) $50,000 D) $10,000
B)$5,000 *Persons convicted of willful violations of the act or knowingly filing a fraudulent document under the act may be subject to imprisonment and/or fines for each violation. The maximum penalties are 3 years in jail and/or $5,000 in fines. The statute of limitations under the Uniform Securities Act is 5 years.
An Administrator may take disciplinary action against a broker-dealer or its agents when the Administrator 1. determines that the action is in the public interest 2, suspects that the registrant's action violated a rule, order, or the USA 3. issues an injunction that carries the force of law 4. provides for a public hearing, which must precede issuing a cease and desist order A) I and III B) II and III C) I and II D) III and IV
C) 1 & 2 *An Administrator may take disciplinary action against a broker-dealer or its agents when the Administrator determines that the action is in the public interest and suspects that the action violated a rule, order, or the Uniform Securities Act. An Administrator may act upon suspicion that a violation of a rule, order, or provision of the Uniform Securities Act is about to occur. Administrators cannot issue injunctions; they must seek injunctions from a court of competent jurisdiction. Administrators need not conduct public hearings before issuing a cease and desist order.
After conducting an investigation, if the Administrator believes that a violation of a rule issued under the Uniform Securities Act is about to occur, she may A) issue a court order to have a receiver appointed over an investment adviser's assets B) issue a court order requiring the alleged violator to make restitution to the victim C) issue a cease and desist order without prior hearing D) levy a fine against an alleged violator prior to any conviction on criminal charges
C) Issue a cease and desist order without prior hearing *If the Administrator believes that a violation of the act or any rule or order under the act is about to occur, the Administrator may issue a cease and desist order without prior hearing. The Administrator cannot issue injunctions or levy a fine, because those are under the jurisdiction of the courts. Only courts can issue court orders.
Fusion Financial is a broker-dealer registered in States A, B and C, with its home office in State B. A complaint is filed against the firm by a client who resides in State A. Under the powers granted under the Uniform Securities Act, the Administrator of State B could do all of the following EXCEPT A) subpoena witnesses from State C B) gather evidence from State B C) issue an injunction against Fusion Financial D) gather evidence from State A
C) Issue an injunction against Fusion Financial *An Administrator has the power to gather evidence both within and outside of the home state, as well as subpoena evidence and witnesses in any state. Only the courts can issue an injunction.
Which of the following would be included in the Uniform Securities Act's definition of a "sale"? A) Conveying, for value, precious metals to a jewelry distributor B) Sale of a large fixed annuity contract to a taxable institution C) Transfers, for value, of unit trusts to a nontaxable organization D) Donation of interests in rights, warrants, or options on a nonexempt security
C) Transfers, for value ,of unit trusts to a nontaxable organization. *For a security to be sold, it must be exchanged for value. Fixed annuities and precious metals are not securities, so no security sale took place. Donating a security does not qualify as a sale.
An Administrator has jurisdiction over an offer to sell securities if it is made in a newspaper published out of state A) with at least ⅔ of its circulation in the state B) with at least ⅓ of its circulation in the state C) under no circumstances D) with at least ½ of its circulation in the state
C) under no circumstances *An offer to sell or to buy is not made in the state when the publisher circulates or there is circulated on their behalf in the state any bona fide newspaper or other publication of general, regular, and paid circulation which is not published in the state, or which is published in the state but has had more than ⅔ of its circulation outside the state during the past 12 months.
Under the USA, an agent may file for a review of an Administrator's revocation order within how many days of revocation? A) 30 days B) 90 days C) 60 days D) 270 days
C)60 days *An agent may appeal a final order of the state Administrator but a written petition must be filed with the appropriate court within 60 days of the entry of the Administrator's order.
*Which of the following statements (is)are TRUE? 1. An Administrator can suspend a pending registration on a summary basis. 2. An Administrator may not issue a stop order without prior notice and opportunity for a hearing. 3. An Administrator may cancel a registration for the same reasons he revoked or suspended a registration. A) I only B) III only C) II and III D) I and II
D) 1 & 2 An Administrator can, on a summary basis, suspend a pending registration but may not issue a stop order without a prior notice and an opportunity for a hearing. Cancellation is different from revocation and is not a result of disciplinary action; it occurs when a registrant no longer exists, ceases to do business, is declared mentally incompetent, or cannot be located.
If an investment adviser representative commits a criminal violation of the Uniform Securities Act, she is subject to legal action for A) the sooner of two years after discovery or three years after the violation B) 3 years after the alleged violation C) 10 years after the alleged violation D) 5 years after the alleged violation
D) 5 years after the alleged violation *This is a perfect example of how important it is to read the question very carefully. Notice that this is a criminal violation, not a civil one. Under the criminal provisions of the Uniform Securities Act, the statute of limitations is five years after the alleged violation. Do not confuse this five years with the maximum prison sentence of three years. Further, this is different from the statute of limitations for a civil case. That is the sooner of two years after discovery or three years after the infraction. Under federal law, the civil statute of limitations is slightly different. For federal civil cases, it is the sooner of one year after discovery or three years after the infraction.
If a car dealer offers $1,000 bonds as a bonus for the purchase of cars, the car dealer is A) offering a warrant to buy securities B) engaging in an unlawful competitive marketing practice C) committing fraud D) engaging in the offering for sale of a security
D) Engaging in the offering for sale of a security *According to the Uniform Securities Act, offering securities as a bonus on the purchase of another thing for value, such as a car, constitutes an offer of securities. For the purposes of the Uniform Securities Act, the dealers are offering securities and are subject to the provisions of the act. The practice is not fraudulent, but registration as a broker-dealer may be required.
The Administrator has a number of punitive powers. If, while registered, you did something improper, the worst thing that the Administrator could do to you is A) cancel your registration B) deny your registration C) suspend your registration D) revoke your registration
D) Revoke your registration. *Revocation is the strongest action the Administrator can take without a court action.
Which of the following statements relating to penalties under the USA is CORRECT? A) A seller who notices that a sale was made in violation of the act may offer a right of rescission to the purchaser that must be accepted either 2 years after notice of the violation or 3 years after the sale, whichever comes sooner. B) Any person aggrieved by an order of the Administrator may request an appeal of the order within 15 days which, in effect, functions as a stay of the order during the appeal period. C) Unknowing violation of the USA by an agent is cause for imprisonment under the criminal liability provisions of the act. D) A purchaser of a security where a violation of the USA occurred may recover the original purchase price plus legal costs and interest, less any earnings already received.
D)A purchaser of a security where a violation of the USA occurred may recover the original purchase price plus legal costs and interest, less any earnings already received. *A client who purchased a security in violation of the USA may recover the original purchase price plus costs involved in filing a lawsuit. In addition, the purchaser is entitled to interest at a rate stated by the Administrator, less any earnings already received on the investment. To be subject to time in prison, a sales agent must knowingly have violated the USA. The right of rescission must be accepted or rejected within 30 days of receipt of the letter of rescission; it is the statute of limitations for claims that runs the 2- or 3-year period. An appeal will only stay an order when so directed by a court of competent jurisdiction.
An Administrator could use which of the following as a reason for issuing an order denying the registration of a security? 1. The issuer's enterprise or method of business includes or would include activities that, although legal in the state of incorporation, are illegal in the Administrator's state. 2. The company has not been paying dividends. 3. The offering would be made with unreasonable amounts of underwriters' and sellers' discounts. A) I and III B) I only C) III only D) I, II, and III
A) 1 & 3 *An Administrator may deny the registration of a security when the activity to be conducted in the state is illegal. The underwriter's compensation may not be unreasonable. There is no requirement that dividends be paid in order to register a security.
1. While the Administrator has great power, the USA does place some limitations on the office. Which of the following statements regarding those powers are TRUE? 1. In conducting an investigation, an Administrator can compel the testimony of witnesses. 2. Investigations of serious violations must be open to the public. 3. An Administrator in Illinois may only enforce subpoenas from South Carolina if the violation originally occurred in Illinois. 4. An Administrator may deny the registration of a securities professional who has been convicted of any felony within the past 10 years. A) I and IV B) III and IV C) II and III D) I and III
A) 1 & 4 *Explanation An Administrator can compel the testimony of witnesses when conducting an investigation. Investigation of serious violations need not be held in public. An Administrator in Illinois may enforce subpoenas from South Carolina whether the violation occurred in Illinois or not. Conviction for any felony within the past 10 years is one of a number of reasons that the Administrator may have for denying a license.
Aaron is a client of XYZ Financial Services. Over the past several years, Aaron has been suspicious of possible churning of his account, but has taken no action because account performance has been outstanding. After reviewing his most recent statement, Aaron suspects that excessive transactions have occurred. He consults his attorney, who informs him that under the Uniform Securities Act any lawsuit for recovery of damages must commence within A) 3 years of occurrence or 2 years of discovery, whichever occurs first B) 2 years of occurrence C) 1 year of occurrence D) 2 years of occurrence or 3 years of discovery, whichever occurs last
A) 3 years of occurrence or 2 years of discovery, whichever occurs first. *Under the USA, the lawsuit for recovery of damages must commence within the sooner of 3 years of occurrence of the offense or 2 years of its discovery.
According to the Uniform Securities Act, an offer or a sale does not exist if it is a reclassification of the issuer's securities a bona fide pledge or loan an act incident to a judicially approved reorganization in which a security is issued in exchange for one or more outstanding shares a stock dividend of stock other than the issuer's for which nothing of value was given A) II and IV B) I, II, III, and IV C) I and II D) II and III
B) 1, 2, 3, & 4 *The Uniform Securities Act specifically excludes these 4 choices from the definition of offer and sale.
If you are registered as an agent for a broker-dealer in State Y and you conduct business as an agent of theirs in State Z, a state in which you are not registered as their agent, you 1. expose yourself and your employer to disciplinary action by State Z 2. expose yourself to a possible fine 3. may obligate your broker-dealer to offer your client the right to rescind the sale 4. may have your registration in State Y revoked A) I, II, and III B) I, II, III, and IV C) II, III, and IV D) II and III
B) 1, 2, 3, & 4. *Agents must be registered in each state where selling or offering to sell securities unless an exemption is available. Failure to do so exposes the agent and the broker-dealer to fines and possible disciplinary action. In addition, the individual could have his registration revoked where he is registered, and the broker-dealer could be required to offer customers the right to rescind any securities transactions.
Which of the following powers are under the jurisdiction of the Administrator? A) Performing an annual audit of broker-dealers registered in the state B) Issuing a cease and desist order to an agent without any prior notice C) Issuing a final order suspending the registration of a person as long as, upon written request, a hearing will be granted in no more than 15 days D) Performing an annual audit of investment advisers registered in the state
B) Issuing a cease and desist order to an agent without any prior notice. *Whenever it appears to the Administrator that any person has engaged, or is about to engage, in any act or practice constituting a violation of any provision of the USA or any rule or order hereunder, he may in his discretion issue a cease and desist order, with or without a prior hearing against the person or persons engaged in the prohibited activities, directing them to cease and desist from further illegal activity. Any person aggrieved by a final order of the Administrator (that means after the hearing has taken place) may obtain a review of the order in the appropriate court by filing a written petition in court, within 60 days, not 15, after the entry of the order. Broker-dealers and some IAs have to file annual audited financials with the Administrator, but the audit is conducted by an independent accountant, not the Administrator.
A properly licensed agent in Illinois, Missouri, and Iowa has a client who moves from Illinois to Michigan on July 1, 2014. On September 1 of that year, the agent sells him 100 shares of a nonexempt security in a nonexempt transaction. On October 1, 2015, the client discovers that the agent's firm never licensed him in Michigan and that the agent is subject to civil liability to the purchaser. The statute of limitations for this sale runs out on A) October 1, 2017 B) September 1, 2017 C) September 1, 2016 D) October 1, 2018
B) September 1st, 2017 *The statute of limitations for civil liability is the earlier of 3 years after the date of the sale or 2 years after discovery of the violation. In this case, the earliest date is 3 years after the sale on September 1, 2014.
An offer to sell describes A) the exercise of warrants B) the attempt to dispose of a security for value C) the receipt of a stock dividend D) the purchase of a new issue
B) The attempt to dispose of a security for value *An offer to sell includes any attempt to dispose of a security for value. A stock dividend is not an offer or a sale, whereas the exercise of a warrant is a sale, not an offer.
One way in which the penalty for a civil infraction differs from that for a criminal one is that in the civil case, the guilty party cannot A) be fined B) receive a jail sentence C) appeal the verdict D) receive a suspension
B)receive a jail sentence *Only in criminal cases is prison time an option.
Which of the following is (are) TRUE regarding violations of the Uniform Securities Act? 1. The Administrator may issue a cease and desist order without a prior hearing. 2. Violators may incur a criminal penalty of a $5,000 fine or 3 years in jail, but not both. 3. There is no statute of limitations on the return of criminal indictments. A) II and III B) I and II C) I only D) I, II, and III
C) 1 only. *The Administrator may issue a cease and desist order with or without a prior hearing. The statute of limitations on criminal violations is 5 years, not unlimited. Regarding the criminal penalties described, the amounts are correct—a $5,000 fine, 3 years in prison—but violators may face both, not just one or the other.
The statute of limitations for criminal offenses under the USA is A) 10 years B) 2 years C) 3 years D) 5 years
D) 5 years. *Remember the sequence 5-5-3: 5-year statute of limitations, $5,000 maximum fine, and imprisonment for up to 3 years.
Which of the following statements is TRUE regarding the civil liability provisions of the Uniform Securities Act? A) Only those who actually signed the registration statement are exposed to potential liability. B) The statute of limitations for civil suits is 3 years from the date of discovery. C) Purchasers may waive their rights to suit under the civil liability provisions if done so by the purchase contract. D) If the registration statement contains misrepresentations that were made deliberately, criminal penalties, in addition to civil ones, may be levied.
D)If the registration statement contains misrepresentations that were made deliberately, criminal penalties, in addition to civil ones, may be levied. *Under state law, civil suits must be filed within 2 years of the date of discovery of the improper action or 3 years after the sale, whichever comes sooner. Purchasers may not waive their rights under the act for any provision. Although those who signed are liable, there is a list of others who also might be, including members of the board of directors, legal counsel, accountants, et cetera.
Jack, who is proficient in both fundamental and technical analysis, would like to become an investment adviser. Although Jack is fairly new to the securities business, he worked in the commodities business for many years. Five years ago, Jack's Commodity Pool Operator's license was suspended by the Commodity Futures Trading Commission for having willfully violated or willfully failing to comply with any provision of the Commodity Exchange Act. Which of the following best describes how Jack's application to open an investment advisory business will be handled under the Investment Advisers Act of 1940? A) Jack's application will likely be denied because he has little experience in the securities industry. B) Jack's application will likely be accepted because his violation of investment-oriented regulations occurred 5 years prior to his application. C) Jack's application will likely be accepted because he has not violated any securities law. D) Jack's application will likely be denied because he violated the Commodity Exchange Act within the 10-year period prior to his application.
D)Jack's application will likely be denied because he violated the Commodity Exchange Act within the 10-year period prior to his application. *Jack's application will probably be denied because he was found guilty of violating the Commodity Exchange Act within the 10-year period prior to his application. Registration as an investment adviser will be denied to any party that has been convicted, within the 10-year period prior to application, of a violation of federal securities acts or the Commodity Exchange Act. Such statutory denial will also impact those enjoined under domestic or foreign court orders from engaging in the business of investing, presuming such orders were made in the 10-year period prior to the application date.
A broker-dealer is registered in State W, but its principal, and only place of business, is in State L. Which of the following statements regarding the ability of the Administrator to perform an onsite examination is CORRECT? A) Neither Administrator would be able to perform an onsite examination without giving 15 days written notice to the broker-dealer. B) Because the broker-dealer's principal office is located in State L, only that state's Administrator has the jurisdiction to perform an onsite examination. C) Because the broker-dealer does not have a place of business in State W, it is impossible for the Administrator of that state to perform an onsite examination. D) The Administrators of both State L and State W may perform unannounced onsite examinations during normal business hours.
D)The Administrators of both State L and State W may perform unannounced onsite examinations during normal business hours. *As long as a broker-dealer is registered in a state, the Administrator of that state has the jurisdiction to perform an onsite, unannounced (surprise) examination (audit). In those cases where there is no place of business in the state, as in this question, the examination takes place at the principal office where the Administrator will view records pertaining to clients residing in State W.
Under which of the following circumstances may an Administrator revoke a state registered investment adviser's registration? A) The adviser is no longer in business. B) The adviser has been declared mentally incompetent by a court of jurisdiction. C) The adviser cannot be located after a reasonable search by the Administrator. D) The adviser has been convicted of a nonsecurities-related felony.
D)The adviser has been convicted of a nonsecurities-related felony. *If an adviser committed a felony or participated in unethical business practices, its registration will be revoked, not canceled. An adviser's registration may be canceled if the adviser is found to be mentally incompetent, cannot be located, or is no longer in business. The difference between canceling and revoking a registration is subtle; cancellation is not punitive while revocation involves some sort of wrongdoing.
A registrant's registration may be canceled by the Administrator A) as long as there is opportunity for a hearing B) upon the order of a court of competent jurisdiction C) when the registrant has been found in violation of the Uniform Securities Act D) if the Administrator is unable to locate the registrant
D)if the Administrator is unable to locate the registrant *Cancellation is nonpunitive—nothing wrong was done. But when the Administrator is unable to locate the registrant, or the registrant is declared mentally incompetent or is deceased, registration is canceled.
While a student at college 9 years ago, Joe was convicted of possession of marijuana (a misdemeanor in that state) and received a suspended sentence. Joe now resides in a different state where the same offense is a felony. If Joe disclosed the matter on his application to ABC Securities, Joe's registration may A) be denied based on this conviction because it was less than 10 years ago B) not be denied based on this conviction because it was 9 years ago C) be denied based on this conviction because the crime is a felony in the state where he seeks registration D) not be denied based on this conviction because it was a misdemeanor in the state where he went to college Explanation
D)not be denied based on this conviction because it was a misdemeanor in the state where he went to college *In this context, only a conviction for a felony within the past 10 years may be grounds for denying a registration. Because the conviction does not show up on Joe's records as a felony, the fact that this state has different penalties for the same offense is irrelevant.
An investment adviser is sued by a client. If the client is successful in the civil proceeding, under the Uniform Securities Act, the client may be awarded A) the money paid for the advice, any losses resulting from the advice, and all costs and attorney's fees B) the money paid for the advice and all costs and attorney's fees C) any losses resulting from the advice plus interest, costs, and attorney's fees D) the money paid for the advice, any losses resulting from the advice plus interest, costs, and attorney's fees, less any revenue gained from the advice
D)the money paid for the advice, any losses resulting from the advice plus interest, costs, and attorney's fees, less any revenue gained from the advice *Securities professionals may be sued by their clients under civil law if they lose money and the securities professional has violated the Uniform Securities Act in connection with the loss. In the case of an investment adviser (or IAR) the client is entitled to recover the consideration (money) paid for such advice and any loss due to such advice, together with interest at the state's legal rate from the date of payment of the consideration plus costs and reasonable attorney's fees, less the amount of any income received from such advice.
