Series 63
A broker-dealer is required to initially register with: A the SEC B FINRA C the state administrator D the Governor of the state
A
A customer has a free credit balance at a broker-dealer. The customer makes a verbal request over the phone that the broker-dealer pay the amount of the balance immediately, in check form. Which statement is TRUE? A The request should be honored as given B The broker-dealer cannot honor the request unless it is in writing C The broker-dealer cannot honor the request unless the customer makes it in person D The request cannot be honored since free credit balances are not payable to the customer
A
A violation of the Uniform Securities Act will NOT occur if statements made about a security are: A true, but omit non-material facts B true, but omit material facts C. untrue, but include material facts D untrue, but include non-material facts
A
A willful and fraudulent violation of the Uniform Securities Act occurs if a(n): A deceptive sales presentation is made to a client, but no sale results B omission of fact is made that is not important to understanding the risks and merits of the investment C security that is not properly registered is recommended to a customer and the agent was unaware of this D investment recommendation is made to a customer of the stock of a company that is in a precarious financial condition
A
An Investment Adviser Representative (IAR) is permitted to borrow money from: A a close relative B a customer, as long as the loan is disclosed to the investment adviser C a customer that is defined as an accredited investor D no one
A
An agent for a broker-dealer tells a customer that the price of a stock is higher than it actually is. Based on this information, the customer sells the stock. Which statement is TRUE? A The agent is subject to civil action taken by the Administrator B The agent is only subject to civil action taken by the Administrator if the customer loses money C The agent's actions are acceptable if the customer is given the opportunity to make up for the trade with purchases of stocks at prices below the current market D The agent's actions are acceptable if the agent buys the shares back from the customer at an agreed upon price
A
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
An agent receives physical certificates from a customer that the customer wishes to deposit to his brokerage account. Which statement is TRUE? A The agent must forward the certificates to the broker-dealer immediately B The agent must enter the certificates into street name and destroy the old certificates immediately C The agent can accept the securities for safekeeping for no longer than 3 months D Under no circumstances can a broker-dealer take physical custody of securities unless approval of the Administrator is obtained
A
An investment adviser has its principal office in State X. It also has offices in States Y and Z. The recordkeeping requirements of State Y are more stringent than those of State X and the recordkeeping rules of State Z are the most stringent of all. The investment adviser is required to maintain its records in accordance with the rules of: A State X B State Y C State Z D each State separately under that State's rules
A
Registration of a broker-dealer in a State automatically registers any person that is a: A partner of the broker-dealer B sales employee of the broker-dealer C solicitor of the broker-dealer D clerical employee of the broker-dealer
A
The Administrator may summarily deny or revoke the exemption of which type of security? A Non-Profit Charitable Organization Issues B Securities guaranteed by a Canadian province C Federal Credit Union Issues D Insurance Company Issues
A
The Administrator, by order, can deny any exemption from registration for all of the following EXCEPT a(n): A municipal bondissued by another state, sold in the Administrator's state B isolated non-issuer transaction C transaction with a bank trust department D private placement
A
The term "issuer" applies to a: A person who proposes to sell a security B director of a company that is selling new shares to the public C trader executing trades off an exchange floor D market maker in a security traded over-the-counter
A
Under the Uniform Securities Act, all of the following are allowed forms of investment adviser compensation, provided it is disclosed to customers, EXCEPT: A a flat fee assessed only if the portfolio increases in value B an hourly rate which includes the time it takes to get to the client's office and back C a varying fee based upon a fixed percentage of assets under management D a flat fee per year regardless of the portfolio size
A
Under the Uniform Securities Act, copies of order memoranda maintained by investment advisers must contain all of the following information EXCEPT: A name of market where trade was executed B person who placed the order C name of account for which order was entered D person connected with the Investment Adviser who recommended the transaction to the client
A
Under the Uniform Securities Act, the unintentional omission of material facts when offering or selling a security can result in: I Civil liabilityII Civil penaltiesIII Criminal liabilityIV Criminal penalties A I only B I and II C III and IV D I, II, III, IV
A
Which of the following individuals is defined as an "agent" under the Uniform Securities Act? I An individual who represents a broker-dealer selling exempt securities to the publicII An individual who represents a broker-dealer selling securities listed on a national stock exchangeIII An individual who represents an issuer in an exempt transactionIV An individual who represents an issuer in a transaction with existing employees without accepting a commission A I and II only B III and IV only C I, II, IV D I, II, III, IV
A
Which of the following is (are) NOT considered to be a "broker-dealer" under the Uniform Securities Act? I A person who effects securities transactions for its own accountII A person who effects securities transactions for the account(s) of othersIII An agent of a broker-dealer who effects securities transactionsIV An agent of a broker-dealer who effects securities transactions that are not recorded on the books of the broker-dealer A III only B I and II only C I, II and IV only D I, II, III, IV
A
Which of the following is (are) non-issuer transactions? I Purchase of a NASDAQ listed securityII Purchase of a mutual fund shareIII Purchase of a limited partnership interest from the sponsorIV Purchase of an initial public offering from an underwriter A I only B I and II C III and IV D I, II, III, IV
A
Which of the following would MOST likely be an investment adviser that is State registered? A Certified Financial Planner B Adviser with assets under management of $100 million C Investment Company D Trust Company
A
Which statement is TRUE about registration of directors as agents of a broker-dealer? A When a broker-dealer registers in a State, automatic registration as an agent occurs for any director B When a broker-dealer registers in a State, each director must apply separately for registration as an agent C The broker-dealer must apply for registration of each director as an agent D The broker-dealer must only apply for registration of a director if so directed by the Administrator
A
Which statement is TRUE regarding the State Administrator's authority to establish recordkeeping rules for broker-dealers? A The Administrator can only establish recordkeeping rules that are the same as those set by the SEC B The Administrator cannot establish recordkeeping rules for broker-dealers C The Administrator has the power to set recordkeeping rules if it is in the public interest D The Administrator can neither establish nor enforce recordkeeping requirements for broker-dealers
A
A broker-dealer is offering an IPO to the public. The broker-dealer is permitted to sell the shares to: I its unregistered employeesII its registered employeesIII prospective customersIV its existing customers A I and II only B III and IV only C I and IV only D II and III only
B
A registration statement which has been filed for a security is effective for: A 6 months B 1 year C 2 years D 5 years
B
An individual holding a Certified Financial Planner license wishes to register in a State as an Investment Adviser Representative. To do so, they must A must take a licensing exam B must file a Form U-4 C must post a surety bond D is not required to do anything
B
An investment adviser agrees to direct its portfolio trades to a specific broker-dealer at full commission rates in return for the broker-dealer providing the adviser with a leased new car paid by the broker-dealer. This is: I a soft dollar arrangement II a quid pro quo arrangement III permitted under the Uniform Securities prohibited under the Uniform Securities Act A I and III B I and IV C II and III D II and IV
B
An investment adviser has been formed and the firm and its representatives file their first registration with the State on July 1st. On June 30th of the following year, the firm files renewal registrations for itself and its representatives. Which statement is TRUE under the Uniform Securities Act? A Since State registration is good for 1 year, the renewals were filed in a timely manner B The firm's registration and its representatives' registrations lapsed after December 31st of the preceding year C The firm's registration and its representatives' registrations are good until December 31st of the current year, at which point they must be renewed D There is no requirement for annual registration renewals in the State
B
An issuer has filed a registration statement in the State proposing to offer 500,000 shares in a combined primary and secondary distribution, consisting of 300,000 newly issued shares and another 200,000 shares being offered by the officers of the firm. Under Uniform State Law, the: A 500,000 shares being sold is anissuer transaction B 300,000 shares being sold is an issuer transaction and the 200,000 shares being sold is anon-issuer transaction C 300,000 shares being sold is a non-issuer transaction and the 200,000 shares being sold is an issuer transaction D 500,000 shares being sold is a non-issuer transaction
B
If an agent fails to renew his or her license at the end of the year, the: A registrant must retake the Series 63 or 66 examination B registration expires with no action by theAdministrator C registration is automatically renewed and a late fee is assessed D registration is revoked
B
Joe Jones, the proprietor of Joe Jones Financial Planning Inc., which is registered as an investment adviser in New York State, has decided that he can expand his business by setting up an Internet website. He includes a questionnaire that solicits individuals to transmit information about their investment objective, financial situation, financial needs, risk tolerance level and investment time horizon, which he will use to create a financial model and plan for a fee. Which statement is TRUE? A Joe Jones Financial Planning Inc. must register with the SEC as an investment adviser, but is not required to register as an investment adviser in each State where customers complete the questionnaire B Joe Jones Financial Planning Inc. is not required to register with the SEC as an investment adviser, but the firm is required to register as an investment adviser in each State where customers complete the questionnaire C Joe Jones Financial Planning Inc. is required to register with the SEC as an investment adviser, and the firm is required to register as an investment adviser in each State where customers complete the questionnaire D Joe Jones Financial Planning Inc.'s current New York State registration is the only requirement
B
Registration of securities in a State by Filing becomes effective: A 2 business day after the filing with the State is completed B 5 business days after the filing with the State is completed C 10 business days after the filing with the State is completed D when theSECregistration becomes effective
B
The amount of commission charged to a customer to effect a securities transaction must be disclosed: A prior to executing the transaction B on the trade confirmation C on the account statement D on the Form 1099
B
The person named as the executor over an estate would be found in the: A affidavit of domicile B letters testamentary C proof of domicile D certificate of incumbency
B
Under NASAA recordkeeping rules for investment advisers, any advertisement, circular or other communication must be retained: I if it is circulated to 2 or more personsII if it is circulated to 10 or more personsIII for a minimum of 3 yearsIV for a minimum of 5 years A I and III B I and IV C II and III D II and IV
B
Under NASAA recordkeeping rules for investment advisers, any advertisement, circular or other communication: I must be retained if it is circulated to 2 or more personsII must be retained if it is circulated to 5 or more personsIII cannot recommend the purchase or sale of a specific securityIV can recommend the purchase or sale of a specific security and if it does not state the reasons for the recommendation, a memo must be retained indicating the reasons for the recommendation A I and III B I and IV C II and III D II and IV
B
Under NASAA recordkeeping rules, advisers must retain records for no less than: A 3 years, with the first 2 years kept in the principal office of the adviser B 5 years, with the first 2 years kept in the principal office of the adviser C 7 years, with the first 3 years kept in the principal office of the adviser D 10 years, with the first 5 years kept in the principal office of the adviser
B
Under Uniform State Law, the State Administrator can require an investment adviser to retain certain records and can mandate the form in which these records are to be maintained. Regarding these records, which statement is TRUE? A The Administrator can require the RIA to keep almost any record that the Administrator wishes B The Administrator can require any record to be maintained that it believes is in the public's best interest but it cannot require records to be maintained that contravene Federal rules C The Administrator can only require those records to be kept that relate to the solicitation of customer orders in that State D The Administrator can require any record to be maintained that it believes is in the public's best interest regardless of any SEC rules that cover the same recordkeeping requirements
B
Under the NASAA Statement of Policy, an agent of a broker-dealer that has discretionary authority would NOT be subject to the prohibition on excessive trading of a customer account as long as the: A customer consents in writing to each recommended transaction B account is a non-managed fee based account C account has consistently increased in value D broker-dealer discounts the commissions charged to customers that are active traders
B
Under the provisions of the Uniform Securities Act, the determinant of whether an investment adviser can take custody of client funds is whether the RIA: A is named as the trustee of a client trust account B has taken out a surety bond C has a signed power of attorney D has at least $25 million of assets
B
Which TWO of the following are tests for whether registration as an investment adviser is required under the Uniform Securities Act? I Whether the investment adviser has an office in that stateII Whether the investment adviser is an individualIII Whether the investment adviser accepts a fee for rendering adviceIV Whether the investment adviser gives advice relating to the advisability of investing in securities A I and II B III and IV C I and IV D II and III
B
Which form(s) MUST be signed by the customer in order to open a margin account? A New Account Form B Hypothecation Agreement C Loan Consent Agreement D All of the above
B
Which information is NOT required to be recorded on executed order tickets? A Time of order receipt B Price of security at time of order receipt C Time of order execution D Price at which the order was executed
B
Which statements are TRUE about the filing of the annual surprise audit results with the Administrator by investment advisers? I Only advisers that take custody must be audited II All advisers must be audited III Audit results must be filed with the Administrator within 60 days of completion of the audit IV Audit results must be filed with the Administrator within 120 days of completion of the audit A I and III B I and IV C II and III D II and IV
B
A Registered Investment Adviser with 25 clients in State A is expanding its operations to States B, C, and D. It currently has 6 clients in State B, but has not opened an office in that State. It currently has 3 clients in State C, where a small office has been opened. It has 5 clients in State D, and is considering opening an office there. In which States is the RIA required to register? A State A only B States B and C only C States A, B, and C D States A, B, C and D Because the RIA has offices in States A and C, it must register in those States. The "de minimis" exemption from registration only applies to advisers with no office in the State that have 5 or fewer clients in that State. Since the adviser has 6 clients in State B, it must register in State B. The fact that it has no office there has no bearing on this. On the other hand, the "de minimis" exemption applies to State D, since the adviser has no office there and has the maximum permitted number of clients (5) before registration is required.
C
A customer wants to tie the amount paid to his broker to the performance of the recommendations made by that broker. The customer says: "For every recommendation that increases in value within 6 months, I will pay you twice the regular commission rate; for every recommendation that goes down in value, I will pay you half of the regular commission rate." This arrangement is A permitted if it is documented in writing B permitted if the securities involved are exchange listed C prohibited because the commission cannot be based on account performance D prohibited because the commission cannot differ for each customer
C
A money market fund that charges .10% of annual management fees and .20% of annual 12b-1 fees: A cannot be called "no-load" because the total of these fees exceeds .25% B cannot be called "no-load" because such funds cannot charge 12b-1 fees C can be called "no load" D can be called "low load"
C
A new customer wants to open a discretionary account by initially depositing $20,000 in cash. He signs the authorization form and indicates to an agent that his investment objective is long-term growth. He wishes that the agent immediately invest his money to take advantage of market timing. Which statement is TRUE? A As long as the customer is an American Citizen born in the United States and this is verified, the agent may invest the money in a manner consistent with the customer's objective B Once the new account form is approved by the State Administrator, the agent can start investing as long as the investment is consistent with the customer's objective C The agent should contact her branch manager as cash deposits or withdrawals exceeding $10,000 must be reported to the Department of Treasury D The agent should contact her State Administrator as amounts exceeding $10,000 must be reported to the Secretary of the State
C
All of the following are federal covered securities EXCEPT: A NYSE listed issues B NASDAQ listed issues C SEC registered issues D Registered investment company issues
C
An Investment Adviser has just submitted a U-4 registration application for a newly hired salesperson to be registered as an Investment Adviser Representative of the firm. This individual can start soliciting potential clients: A immediately because the U-4 application has been filed with the State B once the appropriate licensing test has been passed C once the State Administrator approves the application D once the appropriate licensing fee has been paid
C
An agent of a broker-dealer registered in all 50 States is located in the State of Missouri, where the broker-dealer maintains a call center. The agent is only registered in the State of Missouri. A new customer that is a resident of Florida has seen one of the broker-dealer's television advertisements and calls the "800" number in the advertisement, reaching this agent. The customer states that she wants to "Buy some good stocks - what do you recommend?" Under the Uniform Securities Act, the agent: A can recommend securities to the customer because the broker-dealer is registered in the State of Florida B can recommend securities to the customer because the call was received in the State of Missouri where the agent is registered C cannot recommend securities to the customer because the agent is not registered in the State of Florida D cannot recommend securities to the customer unless the securities recommended are exempt from registration
C
An investment adviser charges a 1% annual management fee to all clients. The adviser also says that if he does not produce a 20% annual return on the client's investment, he will refund the management fee. This action is: A permitted because it has been offered to all clients B permitted because the clients are not being charged an incentive fee C prohibited because the adviser cannot make fee charges contingent on performance D prohibited because the adviser cannot share in portfolio gains and losses
C
An investment adviser has 3 managing partners and 3 investment adviser representatives. All of the partners have completed the Certified Financial Planner (CFP) program and received the designation. The 3 IARs have been enrolled in a CFP preparation course and are scheduled to take the next CFP exam. The IA publishes an advertisement that states: "All of our partners are Certified Financial Planners." This advertisement is: A fraudulent and misleading B unethical because an advertisement cannot include the qualifications of the firm's principals C permitted since it is true D permitted only after the IARs pass their CFP exams
C
An investment adviser that claims that it is a "fee only" adviser could be compensated based on: I a percentage of assets under managementII a flat annual or hourly fee for all work performed for wealthy investorsIII 12b-1 fees paid by mutual fundsIV a performance based fee for wealthy investors A I, II, III B III and IV C I, II, IV D I, II, III, IV
C
An investment advisory contract can include a provision that allows: A the RIA to assign the contract to another RIA without notification to the client B payment of part of the appreciation of the account under management to the adviser as a fee C payment of the adviser's management fees on a quarterly basis by direct deduction from the client's account D the RIA to take custody of client funds without making disclosures to any other party
C
An issuer that is listed on the NYSE is making an offering of convertible debentures. Under Uniform State Law, which statement is FALSE? A The Administrator can require that the issuer make a notice filing in the State B The Administrator can bring an enforcement action against the issuer if the offering is fraudulent C The Administrator can subject the offering to State review and approval D The Administrator can require the issuer to pay a filing fee in the State
C
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
Filing of advertising with the Administrator is NOT required for: I U.S. Government securities II Municipal securities III Investment company securities IV Options Clearing Corporation securities A I and II only B III and IV only Correct answer C. You did not choose this answer. C I, II, III Incorrect answer D. You did not choose this answer. D I, II, III, IV
C
In March, an investment adviser wishes to increase its annual management fee from 1% of assets annually to 1.25% of assets annually, starting the following July 1st. In order to do this: I the investment adviser must amend the Form ADV filed with the State immediatelyII the investment adviser must amend the Form ADV filed with the State within 30 daysIII the adviser's customers must approve of the change by July 1stIV the adviser's customers are not required to approve the change A I and III B I and IV C II and III D II and IV
C
The Administrator is authorized to do all of the following EXCEPT: A revoke the registration of allagentsassociated with abroker-dealerwhen the broker-dealer's registration is revoked B subpoena the books and records of a broker-dealer after a suspension order is issued C suspend a registration pending a hearing without stating a reason for the suspension D obtain an injunction against any person suspected of violating the Act
C
The State Administrator is supervised by the: A North American Securities Administrators Association B Governor of the State C Secretary of the State D Securities and Exchange Commission
C
The amount of commission charged to a customer to effect a securities transaction: A is not required to be disclosed B must be disclosed prior to executing the transaction C must be disclosed on the trade confirmation D must be disclosed on the account statement
C
The determinant of whether that State's Administrator would initiate a proceeding against an investment adviser for violations of the Uniform Securities Act is if the: A adviser has an office located in that State B violation involved securities registered in that State C illegal conduct occurred in that State D customer of the adviser filed a complaint in that State
C
The sale of securities to an insurance company is exempt under the Act under the: A blue chip exemption B exempt security C sophisticated investor exemption D non-issuer exemption
C
Under NASAA rules for State-registered advisers, transactions must be recorded in customer account records no later than: A 10 business days following the end of the month in which the transaction was effected B 20 business days following the end of the month in which the transaction was effected C 10 business days following the end of the quarter in which the transaction was effected D 20 business days following the end of the quarter in which the transaction was effected
C
Under the NASAA Model Rule covering Investment Adviser records, the adviser's articles of incorporation must be retained for: A 3 years B 5 years C for the life of the firm plus an additional 3 years D for the life of the firm plus an additional 5 years
C
Under the Uniform Securities Act, all of the following are defined as "persons" EXCEPT: A General partner in a limited partnership B Public utility selling to public investors C Administratorof the State D Municipality selling industrial development bonds
C
Under the Uniform Securities Act, an Investment Adviser MUST inform a client about: I Change of addressII Addition of new partners to the advisory partnershipIII Change of phone numberIV Addition of client accounts from another advisory firm that was "bought out" A I and III B II and IV C I, II, III D I, II, III, IV
C
Which of the following are EXCLUDED from registration in a State? I Investment adviser with $150,000,000 of assets under managementII Investment adviser with $50,000,000 of assets under managementIII Investment adviser to an investment company with $150,000,000 of assetsIV Investment adviser to an investment company with $50,000,000 of assets A I and IV only B II and III only C I, III, IV D I, II, III, IV Advisers that manage $100,000,000 or more of assets; or that render advice to investment companies; or that are not regulated at the State level; must register with the SEC only. The smaller advisers are only required to be registered at the State level. Thus, the adviser with $150,000,000 of assets under management need only register with the SEC; and is exempt from registration in the State (Choice I). The adviser to an investment company (Choices III and IV) need only register with the SEC regardless of the level of assets under management and is exempt from registration in the State. In contrast, the adviser with $50,000,000 of assets under management need only register with the State.
C
Which of the following is an unethical business practice? A Publication of a tombstone announcement by a broker-dealer in the local newspaper on the effective date of a registered new issue offering managed by that broker-dealer B Publication of a research report by a broker-dealer that shows the performance of prior recommendations made by that broker-dealer during the prior 12 months C Publication of a report by an agent detailing the performance of transactions recommended by that agent over the prior 12 months D Publication of a report by a broker-dealer written by an agent detailing the performance of transactions recommended by that agent over the prior 12 months
C
Which of the following statements is (are) TRUE about the commingling of customer funds and securities with those of the broker-dealer and its agents? A Broker-dealers are prohibited from commingling customer funds and securities with their own funds and securities B Agents are prohibited from commingling customer funds and securities with their own funds and securities C Both of the above D None of the above
C
Which statement is TRUE? A All securities sold through abroker-dealerin a State must be registered in the state B Anagentmay maintain his registration without being affiliated with a broker-dealer C An agent's registration can never be revoked without an opportunity for a hearing D A broker-dealer cannot also be registered as aninvestment adviserat the same time
C
"Persons," as defined under the Uniform Securities Act, include which of the following? I Joint Ventures II Individuals III Unincorporated businesses IV Municipalities A I and III only B II and III only C I, II, and IV D I, II, III, IV "Persons," as defined under the Uniform Securities Act, include Joint Ventures, Individuals, Unincorporated Businesses, and Municipalities. It is important to know who are defined as "persons," since these entities may then be further defined as "agents" (which can only be individuals), "broker-dealers" (which can be incorporated or unincorporated businesses); or "issuers" (which can be incorporated or unincorporated businesses, joint ventures, municipalities etc.).
D
A registered securities agent solicits a customer to buy shares of stock that the agent personally owns. The customer buys 100 shares of the stock and sends a check made out to the agent. The agent does not record the trade on the books of the broker-dealer. This action is considered a(n): A allowed exempt transaction B prohibited exempt transaction C allowed private securities transaction D prohibited private securities transaction
D
For initial registration as an agent in a State, all of the following are required EXCEPT: A Consent to Service of Process B Filing Fee C Registration Application D Government Issued Photo I.D.
D
If a broker-dealer buys out another broker-dealer, which statement is TRUE about filing fees paid to the State? A Two additional separate filing fees must be paid for each of the broker-dealers B A new filing fee covering the entire year must be paid for the combined broker-dealer C An additional pro-rata filing fee covering the balance of the year for the combined broker-dealer must be paid D No additional filing fee is required
D
If an adviser is suspicious about a customer's account activity and believes that there may be illegal activity, then the adviser: I must file a CTR report with FinCEN II must file an SAR report with FinCEN III in 15 days IV in 30 days A I and III B I and IV C II and III D II and IV
D
NASAA Model Rule 502 (c) applies to: A State registered advisers B Federal Covered advisers C Both State and Federal Covered advisers D State registered advisers and Federal Covered advisers only to the extent that the conduct is fraudulent or deceptive NASAA Rule 502 (c) sets the rules for investment advisory contracts. As a NASAA rule, it only covers State-registered advisers. Federal covered advisers are subject the rules of the Investment Advisers Act of 1940, however the rule says that it applies to Federal covered advisers to the extent that the alleged conduct is fraudulent or deceptive.
D
Sending out a blanket e-mail that makes recommendations of securities to a list of web addresses by a broker-dealer or agent is: A permitted only if the securities have been registered in each State B permitted only if the broker-dealer and agent are registered in each State C permitted only if the list contains existing customers that have accounts at securities firms D a prohibited and unethical practice
D
State "blue sky" laws provide for registration of all of the following EXCEPT: A broker-dealers B agents C investment advisers D issuers
D
States are NOT permitted to require the registration of a person: I who is excluded from the definition of an investment adviser under the Investment Advisers Act of 1940II who is registered with the Securities and Exchange Commission as an investment adviserIII with no place of business in the State who gives investment advice to fewer than 6 clients who are residents of the state during the preceding 12 months A I only B I and II C II and III D I, II, III
D
Suits alleging criminal violations of the Uniform Securities Act must be brought within how many years of the occurrence of the alleged violation? A 1 year B 2 years C 3 years D 5 years
D
Under NASAA rules, the Form ADV filed with the State must be updated: A quarterly within 30 days of quarter end B quarterly within 90 days of quarter end C annually within 30 days of fiscal year end D annually within 90 days of fiscal year end
D
Under NASAA rules, which of the following records must be retained for 5 years by a Federal Covered Adviser? A Communications to 2 or more persons B Order memoranda C Canceled checks D None of the above
D
Under the Uniform Securities Act, a person could give advice about all of the following securities without having to register in the State as an investment adviser EXCEPT: A Treasury Bonds B Ginnie Mae Pass-Through Certificates C Fannie Mae Debentures D State General Obligation Bonds
D
Under the Uniform Securities Act, a representative's registration in a State: A means that the State Administrator approves of the individual B also registers that individual with the Securities and Exchange Commission C also registers that individual in each State that has adopted the Uniform Securities Act D is effective only as long as the investment adviser is registered in that State
D
Under the Uniform Securities Act, a sole proprietor who provides advice for compensation about fixed income annuity contracts: A must register as anagent B must register as aninvestment adviser C must register as abroker-dealer D need not register
D
Under the Uniform Securities Act, an investment adviser may be formed as any of the following EXCEPT a(n): A corporation B partnership C association D broker-dealer
D
Under the Uniform Securities Act, copies of order memoranda maintained by investment advisers must contain all of the following EXCEPT: A person connected with the Investment Adviser who recommended the transaction to the client B person who placed the order C date of order entry D time of order execution
D
When can an agent represent that a mutual fund is "no load"? A When the fund does not impose an up-front sales load B When the fund does not impose a contingent deferred sales charge C When the fund does not impose annual 12b-1 fees in excess of .25% D When the fund does not impose an up-front sales load, a contingent deferred sales charge or annual 12b-1 fees in excess of .25%
D
Which of the following are permitted to register with the SEC as a Federal Covered Adviser? I An adviser with $10,000,000 of assets under managementII An adviser with $25,000,000 of assets under managementIII An adviser that is currently registered in 10 StatesIV An adviser that is currently registered in 15 States A I and III B I and IV C II and III D II and IV
D
Which of the following is a non-exempt security under Uniform State Law? A NASDAQlisted issues B Church bonds C Equipment Trust Certificates D Corporate bonds offered to fewer than 5 investors
D
Which of the following persons is required to register as an investment adviser under the Uniform Securities Act? A An attorney who writes a legal opinion included in the registration statement filed with the State for a new non-exempt securities offering B A broker-dealer who gives investment advice in the regular course of business executing transactions for customers C An agent of a broker-dealer who gives investment advice as part of his or her regular duties and who charges a fee for such advice D A broker-dealer that charges an annual flat fee to customers for both investment advice and portfolio trade executions
D
Which of the following securities can be registered by qualification in a State? A Limited Partnership B Fractional Interest in an Oil and Gas Program C Certificate of Deposit for a security D All of the above
D
Which statement is FALSE about rules issued by the Administrator? A The issuance of the rule must be consistent with the public interest and protection of investors B The rule cannot contravene provisions of federal law that are preemptive C The rule can be coordinated with rules issued by the SEC D The Administrator must update the rules every 3 years to ensure their compliance with federal statutes
D
Which statements are TRUE about registration of investment advisers? I An adviser with no place of business in the State that limits its clientele to insurance and investment companies is exempt from registration II Broker-dealers can act as investment advisers without registering as such if any advice given is solely incidental to the business of the broker-dealer III Investment Advisers must register with the State A I only B II and III C I and III D I, II, III
D
