USA

In an initial public offering, a member who acted as manager or co-manager CANNOT issue a research report on that company within how many days following the effective date?

10 calendar days

An adviser will NOT be considered to have taken custody of customer funds if it returns the check to the customer within:

3 business days of receipt

Under NASAA rules, Investment Advisers must retain copies of all advertising for:

5 years in an easily accessible place with the first 2 years' records kept in the principal office of the adviser

Attaching any of the following to a prospectus delivered to a customer in connection with the purchase of a new non-exempt securities offering would be a violation of the Uniform Securities Act EXCEPT a(n): A. summary of the important points in the prospectus prepared by the broker-dealer offering the securities B. copy of the most recent advertisement published by the issuer in the mass media C. supplement that presents the issuer's most recent audited financial statements D. internal report prepared by the issuer that shows the next 12 months' sales projections

C. supplement that presents the issuer's most recent audited financial statements A supplement attached to the prospectus of the company's most recent audited financial statements is non-promotional and can be attached. This is valuable unbiased investment information.

An investment adviser is permitted to borrow money from which of the following clients? I An affiliated bank II An unaffiliated bank III An affiliated broker-dealer IV An unaffiliated broker-dealer

I, II, III, and IV An investment adviser is prohibited from borrowing money from a customer. However, if the customer is a bank or broker-dealer (these are persons who are in the business of lending money); the adviser may borrow funds in an arm's length relationship. It makes no difference if the bank or broker-dealer is affiliated with the investment adviser.

An investment adviser may be compensated with which of the following? I Wrap fees charged to customers for all services rendered by the adviser II Soft dollars paid by an executing broker to the adviser in return for trades sent to the broker by the adviser III Bid-Ask spreads earned when position trades are executed IV Commissions paid to an affiliated broker-dealer on trades recommended by the adviser

I, II, and IV Bid-ask spreads are earned by securities dealers that buy securities into their inventory and sell securities out of their inventory. These are called "position trades" because the broker-dealer is taking positions in its inventory account. Broker-dealers earn these; investment advisers are prohibited from receiving these.

An agent of a broker-dealer wishes to withdraw his registration. If there is a customer complaint, the Administrator:

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