August 8th
When a broker-dealer's registration under the Uniform Securities Act is revoked, which of the following occur?
Registrations of agents of that firm are no longer in effect.
An investment adviser maintains custody of customer's funds and securities. In order to comply with the Uniform Securities Act, the adviser must, at least quarterly, send written notice to each custodial client stating the
location of the assets under custody value of the assets under custody
All of the following information would be found on a trade ticket EXCEPT
the price of the security at the time of the order
Which of the following would be least likely to meet the cyber security definition of a covered account?
A business account held by a company listed on the NYSE
Which of the following are NOT included in the definition of an agent in the Uniform Securities Act?
A licensed broker-dealer An officer of an issuer who only represents the issuer in selling shares to a broker-dealer underwriting the company's securities
All of the following must register as an agent when representing a broker-dealer EXCEPT
A partner in a broker-dealer who has no securities sales functions
In some instances, rather than use an investment banker to distribute its securities to the public, an issuer will hire a sales force or use its own employees to make the sales. The individuals involved in the selling in this state would NOT be defined as agents under the Uniform Securities Act if selling on behalf of which of the following issuers?
A savings institution organized and supervised under the laws of any state
Which of the following statements are TRUE?
An agent must submit separate registrations for each broker-dealer with which he is registered. Certain states prohibit agents from dual or multiple registration.
Under the Uniform Securities Act, requirements for registration may include which of the following?
An announcement of the application for registration in one or more newspapers in the state Minimum capital requirements for broker-dealers who do not have custody of client securities or funds
Each of the following statements about postregistration provisions is true EXCEPT
the securities Administrator does not have the authority to conduct an on-site examination of an investment adviser registered in his state if the adviser does not have an office in that state
Under the Uniform Securities Act, if an investment adviser takes custody of client assets, which of the following statements are TRUE?
Clients must receive quarterly statements. The adviser must be audited at least annually.
Which of the following statements is NOT true regarding criminal penalties under the Uniform Securities Act?
Criminal penalties may not be imposed if someone damaged by the violation has already recovered damages under the civil liabilities provisions.
According to the USA, a person must register as a broker-dealer in a state if he had which of the following?
No place of business in the state, but clients who relocated their official residence to that state more than 30 days ago A place of business in the state
According to the Uniform Securities Act, all of the following would be an unlawful activity for an investment adviser EXCEPT
Entering into a written contract with a client
A person makes a sale that is in violation of the anti-fraud provisions of the Uniform Securities Act. Which of the following is NOT a true statement?
If the sale is made by someone not in the securities business, the anti-fraud provisions do not apply.
Which of the following statements concerning an agency cross transaction for an advisory client is (are) TRUE?
It is a transaction in which a person acts as an investment adviser in relation to a transaction in which the adviser or related person acts as a broker-dealer for both the advisory client and another person on the other side of the transaction. An advisory client must provide prior written consent for the adviser to be able to engage in agency cross transactions. An adviser must make prior written disclosure to the advisory client that it will act as broker-dealer for, have a potential conflict of interest with, and may collect commissions from both parties.
Watson, a customer of Gibraltar Securities, wishes to place an order to buy 50 shares of a thinly traded stock priced at $8 per share. Because the stock is so thinly traded, Gibraltar Securities feels it needs to charge Watson a commission of $100 to justify the time it must spend locating a seller of the stock. Which of the following statements best describes this action?
It would not be considered a prohibited practice for Gibraltar to charge Watson $100 to complete the transaction, provided Gibraltar disclosed the $100 commission prior to the transaction and Watson chose to proceed with the trade.
An agent mistakenly sold an unregistered, nonexempt security to a customer. Which of the following actions should the broker-dealer take?
Offer to buy the security back from the customer Offer to pay interest at an annual rate determined by the Administrator, less income paid, from the date the security was purchased
The term "agent", as defined in the Uniform Securities Act, would not include which of the following individuals?
One who represents an issuer in effecting exempt transactions
Under the Uniform Securities Act, which of the following is TRUE regarding civil liability of agents?
Persons who control a civilly liable person may also be sued to recover losses.
Which of the following statements regarding an agent's registration is CORRECT?
Revocation of the registration of that agent's broker-dealer will result in cancellation of that agent's effective registration.
According to the Uniform Securities Act, a person representing an issuer in the sale of which of the following securities would have to be registered as an agent?
Securities issued by a federal credit union
Under the Uniform Securities Act, which of the following negates a client's right to a civil suit for damages suffered from improper investment advice?
The advice that is the subject of the suit was given more than 3 years ago.
An agent is registered in Illinois and Ohio. One of her substantial clients has just moved from Ohio to Arizona, and the agent would like to continue to do business with her. Under the Uniform Securities Act, which of the following statements is TRUE?
The agent's broker-dealer must already be registered in Arizona or complete the Arizona registration process within a time period specified by the act. The agent must complete the Arizona registration process within a time period specified by the act.
An agent is registered in Illinois and Ohio. One of her substantial clients has just moved from Ohio to Arizona, and the agent would like to continue to do business with her. Under the Uniform Securities Act, which of the following statements is TRUE?
The agent's broker-dealer must already be registered in Arizona or complete the Arizona registration process within a time period specified by the act. The agent must complete the Arizona registration process within a time period specified by the act.
Broker-dealer A wants to promote and reward teamwork. The firm plans to pay out a small percentage of the firm's profits to the clerical staff as a bonus for their hard work. Under NASAA rules, is this permitted?
Yes, no registration is necessary.
Under the Uniform Securities Law, an individual is not required to register as an agent if he represents any of the following issuers in the sale of their securities EXCEPT
a Canadian corporation
Under the Uniform Securities Act, an individual is subject to registration as an agent if he engages in transactions between an issuer of a non-exempt security and
an individual investor with assets in excess of $1 million
An agent is very satisfied with the work being done by his unregistered sales assistant and would like to compensate her with 5% of his commissions. Under the NASAA Statement of Policy on Dishonest or Unethical Business Practices of Broker-Dealers and Agents, this would be
an unacceptable practice because only registered agents may receive sales related compensation
The NASAA Model Rule on Agency Cross Transactions requires that an investment adviser send a written disclosure document to affected clients that includes such items as the total number of agency cross transactions during the period for the client, as well as the total amount of all commissions or other remuneration the investment adviser has received in connection with agency cross transactions for the client during the period no less frequently than
annually
Any individual who represents an issuer in effecting transactions between the underwriter and the issuer
does not meet the definition of "agent" as promulgated under the Uniform Securities Act
Buzzy Rogers, an agent with the brokerage firm of Speedy Executions, Inc. (SEI), has just received notice from his supervisor that a final order has come down from the Administrator of State Z suspending his agent's registration for 6 months. Buzzy's options would include
filing an appeal in the appropriate state court within 60 days of the date of the order
The Administrator may, by rule
forbid investment advisers registered in that state from taking custody of client funds
The Uniform Securities Act grants an Administrator a great deal of authority. Those powers would include all of the following EXCEPT the power to
impose fines for criminal violations of the act up to $5,000
The Uniform Securities Act does not contain bonding requirements for
issuers
A publicly traded corporation offers its employees an opportunity to purchase shares of the company's common stock directly from the issuer. A specific employee of the company is designated to process any orders for that stock. Under the USA, the employee
must register as an agent only if he will receive commissions or remuneration, either directly or indirectly related to the volume of sales
Under the USA, a person representing the issuer is not considered an agent in any of the following transactions EXCEPT
nonexempt, initial public offerings confined to a single state of registration
A president of a bank sells shares of the bank to public investors. Under the Uniform Securities Act, he or she is
not defined as an agent under the Uniform Securities Act
An employee of a commercial bank selling the bank's bonds to its banking clients is acting in the capacity of a(n)
person excluded from the definition of an agent
An Administrator wishing to set the net capital requirement for a broker-dealer may not require an amount greater than that
required under the Securities Exchange Act of 1934
The Uniform Securities Act provides for all of the following EXCEPT
specific civil penalties for up to three times the amount of money invested for willful violation of the act
In an effort to combat money-laundering, financial institutions are required to file reports with FinCEN for each cash transaction
that exceeds $10,000
According to the Uniform Securities Act, a state-registered investment adviser may have custody of a customer's funds and securities if
the Administrator has been informed of the custody
When it comes to safeguarding confidential information pertaining to the account(s) of an individual customer or family, the rules deal primarily with what is called a covered account. A key factor in determining if an account meets the definition is
the ability of the customer to move funds out of the account on multiple occasions
An issuer employs its officers and directors to sell newly issued shares of the company to the public. To comply with the USA, the officers and directors would have to be registered as agents of
the issuer
An individual who has applied for registration as an agent of a broker-dealer has just passed the Series 63 exam. This individual may begin soliciting brokerage clients
when informed by the broker-dealer that the agent's registration is effective
If an agent chooses to appeal an Administrator's order, the agent must file for review of the order with the appropriate court
within 60 days of order entry
