Ch 2 The Uniform Securities Act- Registrations
Under the Uniform Securities Act, which of the following securities would be considered to be exempt from state registration and advertising filing requirements? Common stock listed on the NYSE Municipal Bonds, General Obligation or Revenue Limited Partnership interest being offered in multiple states Investment Contracts in connection with employee stock purchase plans [A]I & II only [B]II & III only [C]I, II, IV only [D]I, II, III, IV
[C]I, II, IV only All securities listed are included in the Exempt Securities category of the USA except Limited Partnerships. Limited Partnerships may have to register at the state level since they are not "exempted."
Renewal registration fees are NOT required of which of the following registered applicants? [A]A broker-dealer who is filing for a successor [B]Investment adviser representatives (IARs) [C]Agents of a broker-dealer [D]Agents of an issuer.
[A]A broker-dealer who is filing for a successor A broker-dealer filing for a successor would apply the unused portion of the existing registration to the new (successor) firm.
Exempt securities are exempt from which of the provisions of the Act? Advertising filing requirements. Registration requirements. Anti-fraud provisions. (A)I and II (B)II and III (C)I and III (D)All
[A]I and II Exempt securities are exempt from the filing of advertising and registration. Nothing is exempt from anti-fraud.
A broker-dealer's state registration expires: (A)on December 31st, unless renewed (B)on the anniversary of its initial registration (C)on the 30th day following the anniversary of its initial registration (D)when it ceases to have clients or branch offices in the state
[A]on December 31st, unless renewed The old registration rules state that registration renewal was on the anniversary of registration and if not renewed it expires on the 31st of December. However, the new registration rules prorate initial registration fees making the initial and all subsequent renewal fees due by December 31st of each year.
According to the Uniform Securities Act, which of the following securities would be subject to the Act's registration provisions: [A]the security is issued by a local corporation which is to be sold only within the state [B]an issue by a federal agency [C]an issue by a Canadian province [D]an issue by a bank under state laws
[A]the security is issued by a local corporation which is to be sold only within the state An issue which is to be sold only within the state would be subject to Uniform Securities Act registration provisions since all states have adopted the Uniform Securities Act.
Under the Uniform Securities Act, which of the following actions represents an action which could not be performed by a State Administrator? (A)Deny a registration filing (B)Invoke a civil or criminal penalty (C)Suspend a registration (D)Bar a registration
[B]Invoke a civil or criminal penalty The State Administrator could suspend, deny, or bar a registration but does not have the authority to invoke a civil or criminal penalty. Such action would be taken by a court.
A method by which a security is registered only in a State and not with the SEC, where the Administrator may require the distribution of a prospectus prior to the sale of the security is known as: (A)A Notice Filing (B)A Registration by Coordination (C)A Registration by Qualification (D)A security that would always be exempt
[C]A Registration by Qualification Under the USA, Qualification is a method generally used when a new issue of securities is not going to be registered with the SEC but only in the state of issuance. The distribution of a prospectus to each purchaser may be required by the Administrator prior to the sale of the security.
According to the Uniform Securities Act, which of the following is considered to be an exempt security? [A]a sale of securities by an issuer to a syndicate member [B]an unsolicited purchase of common stock by a charitable organization [C]common stock listed on the American Stock Exchange [D]an unsolicited purchase of common stock through a registered broker-dealer
[C]common stock listed on the American Stock Exchange The USA specifically states that securities listed on the American Stock Exchange are exempt securities.
Whenever an agent starts or ends a business relationship with an issuer, to comply with Uniform Securities Act regulations he or she must: [A]appear before the Administrator to seek approval. [B]wait until consent is given to do so by the Administrator. [C]meet minimum financial requirements and post surety bonds.[D]provide the Administrator with prompt notification.
[D]provide the Administrator with prompt notification. Whenever an agent begins or terminates a relationship with an issuer or broker-dealer, the Uniform Securities Act requires that the agent as well as the issuer or broker-dealer firm, promptly notify the Administrator. Notification should be filed by each entity (broker-dealer firm, issuer, and agent).
All of the following are true about a surety bond that may be required of a registrant under the USA except? (A)It must be kept in force for as long as the registrant is in business and for three years thereafter. (B)The minimum amount of the bond is $100,000. (C)The bond covers losses for which the registrant is legally liable.(D)A formal Proof of Loss is required to support a claim against the bond.
B. The minimum amount of the bond is $100,000. The amount of the bond is within the discretion of the State Administrator. The USA does not specify a minimum amount on a bond.
According to the Uniform Securities Act a registration by qualification becomes effective (A)60 days after all information is filed with the administrator (B)when the administrator so orders (C)automatically after the offering has been filed with the administrator (D)when the federal registration filing becomes effective
[B]when the administrator so orders Registration becomes effective when deemed effective by the Administrator.
Which of the following securities would NOT qualify for an exemption and must therefore be registered with the Administrator under the Uniform Securities Act? (A)Bonds issued by the country of Canada (B)A Federal Credit Union for Teachers (C)A security issued by a company to the members of the public of a given state (D)A security issued by an electrical company offering electricity to a particular county of a given state
[C]A security issued by a company to the members of the public of a given state Each of the securities listed qualifies for an exemption EXCEPT for the security that is issued to members of the public of a given state. All other answers qualify for an exemption under the Uniform Securities Act.
A bank is organized under U.S. Law and is selling its own securities. Because of this, the securities issued and sold by the bank are exempt from which Uniform Securities Act provisions? The provisions for registration The provisions requiring filing of advertising The antifraud provisions (A)I only (B)III only (C)I and II only (D)I, II, and III
[C]I and II only Banks are exempt from registration and filing requirements but not from the antifraud provisions.
Under the Uniform Securities Act, when filing an application for registration, an Investment Adviser must include all of the following except? (A)Applicants place of business (B)Applicants business history (C)Applicants financial condition and history (D)Applicants internal staff procedures
[D]Applicants internal staff procedures When filing an application for registration, an investment adviser must include all choices offered except for internal staff procedures. Any type of compliance procedures or employee records would not have to be included in the application.
According to the Uniform Securities Act, which of the following is true regarding registration of investment adviser representatives? [A]Representatives are automatically registered when they become employed by a registered investment adviser. [B]A representative's registration remains in effect even during a period when the representative is not employed by a registered investment adviser. [C]Registration in the state where a representative has his or her business office enables the representative to do business in any state.[D]To register, a representative must submit a completed application for registration, a filing fee, and a signed consent to service of process
[D]To register, a representative must submit a completed application for registration, a filing fee, and a signed consent to service of process Of the choices offered the only choice which is correct is "D". In order to register, an investment adviser representative would have to submit an application, a filing fee, and a signed consent to service of process. Registration is NOT automatic.
Robert McPuck is an agent/stockbroker for his broker-dealer, Canuck Securities, a Canadian Broker-Dealer. One of his long time customers, John Snowbird, is vacationing for the winter in Florida. Both Robert and his broker-dealer are properly registered in Canada and have limited registrations in Florida. Canuck Securities does not have an office in Florida. Which of the following statements about Robert's activities is true? (A)Robert may contact John and offer him a new investment opportunity. (B)Robert may not contact John or offer him an investment opportunity. (C)Robert may contact John to service existing positions but not to open a new position. (D)John may initiate the contact with Robert but Robert cannot initiate the contact with John.
[A]Robert may contact John and offer him a new investment opportunity. John is an existing client who is vacationing in Florida therefore Robert would be allowed to contact him as long as he and his broker-dealer are properly registered in Canada and have limited registrations in Florida.
Under the Uniform Securities Act, the administrator may deny or revoke the investment adviser's registration in all of the following situations except: (A)The principal of the adviser is insolvent and cannot meet personal obligations as they are due and liabilities of the principal exceed assets. (B)The adviser cannot meet obligations as they are due. (C)The principal of the adviser and the adviser's liabilities exceed their assets. (D)The adviser is insolvent in that it cannot meet obligations as they are due and its liabilities exceed its assets.
[A]The principal of the adviser is insolvent and cannot meet personal obligations as they are due and liabilities of the principal exceed assets. Choice "A" makes reference only to the principal of the investment advisory firm becoming insolvent. Therefore they would not deny or revoke the firms registration.
Blake is a recent hire at an investment advisory firm. He has passed his exam and is newly registered as an IAR. He is glad to be registered and tells his supervisor that he is grateful that there are no obligations moving forward with regards to maintaining his registered status. What should the supervisor tell Blake? (A)"Though you do not have to renew registration, IAR's are required to take exams annually as of December 31st." (B)"Though you do not have to take exams annually, IARs must renew their registrations annually as of December 31st." (C)"Though there may be no requirement for future exams or registration renewal now, the Administrator may require either or both in the future." (D)"You have passed the exam to be an IAR, which means you can also function in the capacity of an agent without further exams or registration."
[B]"Though you do not have to take exams annually, IARs must renew their registrations annually as of December 31st." Registration renewal of broker-dealers, agents, and investment advisory firms must be performed annually at year-end (December 31st).
Under the provisions of the Uniform Securities Act, which of the following is NOT an exempt security? (A)A bond issued by a state credit union (B)A stock issued by a local profit-making manufacturing corporation not listed on any exchange (C)A bond guaranteed by the city of Ottawa, Canada (D)A stock issued by a railroad regulated by the Interstate Commerce Commission
[B]A stock issued by a local profit-making manufacturing corporation not listed on any exchange By definition under the Uniform Securities Act, 'A', 'C', and 'D' are exempt securities and choice 'B', stock issued by local profit making manufacturing corporation not listed on an exchange is not listed as an exempt security.
Gloria McPuck is an agent/stockbroker for her broker-dealer, Maple Leaf Securities, a Canadian Broker-Dealer. A long time friend and sorority sister, Mary Applepie, lives in Detroit, Michigan. Gloria and her broker-dealer are properly registered in Canada and have limited registrations in Michigan. Maple Leaf Securities does not have an office in Michigan. Gloria is prospecting for new customers and calls Mary in Michigan to offer her services and to tell her about an exciting investment opportunity. Which of the following statements about Gloria's activities is true? (A)Her activities are proper and do not violate the law. (B)Her activities are improper and violate the law. (C)Her activities are improper but do not violate the law if Mary does not object. (D)Her activities are proper because Mary is a long time friend.
[B]Her activities are improper and violate the law. The limited registrations of the broker-dealer and the agent in Michigan are only good for servicing existing clients who are temporarily in Michigan or clients whose transactions are limited to those in self-directed tax-advantaged retirement plans which are administered solely through a Canadian broker-dealer.
Paula is an agent of a broker-dealer and has decided that she wants to take a few years off in order to stay home and raise her two small children. Under the Uniform Securities Act which of the following is true with regard to Paula's State registration? [A]Her registration may be continued indefinitely in an inactive status with her broker-dealer until she decides to come back to work. [B]Her registration will be terminated with the broker-dealer and prompt notification must be made to the Administrator by both Paula and her broker-dealer. [C]Her registration will be terminated with the broker-dealer and only the broker-dealer is obligated to promptly notify the Administrator. [D]Her registration may be carried by the broker-dealer in an inactive state for two years after which it will be terminated if she has not returned to work.
[B]Her registration will be terminated with the broker-dealer and prompt notification must be made to the Administrator by both Paula and her broker-dealer. Whenever an agent begins or terminates a relationship with an issuer or broker-dealer, the Uniform Securities Act requires that the agent, as well as the issuer or broker-dealer firm, PROMPTLY notify the Administrator. Notification should be filed by each entity - broker-dealer, issuer, and agent. Registrations at the State level must be renewed annually and a broker-dealer firm may not carry a license in an "inactive" state.
Under the provisions of the Uniform Securities Act, in which of the following circumstances may the Administrator take action against an advisory firm concerning registration of the firm? Nine years ago, the Administrator of another state found that the president of the firm violated the securities laws of that other state. The firm has liabilities that exceed its assets and cannot meet obligations as they come due. A minority shareholder with no management role in a corporate firm cannot meet his financial obligations as they come due. [A]I only [B]I and II only [C]II and III only [D]I, II, and III
[B]I and II only Choices I and II represent situations where that administrator may take action against an advisory firm with regard to registration but choice III would not since it is a minority shareholder with no role in the management of the company.
Which of the following are accurate statements related to a registration performed by Coordination? Paperwork must be filed with the State or States where the securities will be sold. Paperwork must be filed with the NASAA (North American Securities Administrators Association. Paperwork must be filed with the SEC in accordance with the Securities Act of 1933. Paperwork must be filed with FINRA in accordance with the Securities Act of 1934. [A]I and II only [B]I and III only [C]II, III, and IV only [D]I, II, III, and IV
[B]I and III only A security being sold by Coordination would be registered at the Federal Level and would concurrently be registered at the State levels. The two registrations are "coordinated" at the same time. The Federal registration would be performed under the Securities Act of 1933. Registration paperwork would NOT need to be filed with the NASAA, FINRA, or under other securities acts.
Daniel is registered as an investment adviser in State A, but has not yet registered in other states. He limits the number of clients that he has in other States to no more than 5 in each state. Which of following clients would NOT be considered in the count of Daniel's clients under the USA? Bob and Susan Smith, a wealthy couple who are deemed to be accredited ABC Trust Company Bay State Investment Advisory Firm James Johnson, a qualified client (A)I & II only (B)II & III only (C)I, II, & III only (D)I, II, III, IV
[B]II & III only Be careful in this question. We are asking which clients DO NOT count toward the 5 client exemption. An exemption from registration under the USA is available to an investment adviser who has no place of business in a state and limits its clientele to other investment advisers, broker-dealers, and financial institutions, such as banks, insurance companies, trust companies, and investment companies or limits the number of clients to no more than 5 in each state.
A Broker-Dealer has it's only office in Oregon. The Broker-Dealer has institutional clients in three other States. Which of the following is true with regard to the Broker-Dealer's registration requirements? [A]Registration in one state exempts the Broker-Dealer from having to register in any other states. [B]Registration in one state does not exempt the Broker-Dealer from having to register in other states, but in this case, the broker-dealer's client base of institutional clients in other states would qualify the firm for an exemption from registration. [C]Registration is required in every State in which the Broker-Dealer has clients, regardless of who the clients might be. [D]Registration is only required in States other than the Broker-Dealer's home State if the clients execute orders over the telephone rather than an electronic platform.
[B]Registration in one state does not exempt the Broker-Dealer from having to register in other states, but in this case, the broker-dealer's client base of institutional clients in other states would qualify the firm for an exemption from registration. It is unlawful for a broker-dealer to transact business in a state unless it is registered in the state or is exempt from registration. The exemptions from the registration requirements include institutional investors including Banks, Savings Institutions, Trust Companies, Insurance Companies, and Investment Companies. Therefore if the Broker-dealer's clients were Institutional clients, the Broker-Dealer would be exempt from registration in the other States.
Under the provisions of the Uniform Securities Act, which of the following is NOT required for a preorganization subscription to be an exempt transaction? [A]There may be no more than 10 subscribers. [B]The offer of the security may not be advertised. [C]No commission may be paid to anyone for soliciting potential subscribers. [D]No payment may be made by any subscriber.
[B]The offer of the security may not be advertised. Advertising is acceptable when Pre-organization Subscriptions are offered.
A sole proprietorship is in the process of becoming a corporation. This will be a smaller corporation with an offering of shares intrastate to add capital so that the company can keep up with growing demand for a product. When it comes to this scenario, which of the following is an accurate statement according to the rules of the Uniform Securities Act? [A]The stock of the corporation would have to be registered by qualification, but only if the Administrator feels it necessary. [B]The stock of the corporation would have to be registered by qualification, because as described, the stock would not qualify for any exemptions. [C]The stock of the corporation would be exempt, because it is only being sold intrastate. [D]The stock of the corporation would be exempt, because the size of the corporation is still small.
[B]The stock of the corporation would have to be registered by qualification, because as described, the stock would not qualify for any exemptions. The Administrator of a State can prescribe exemptions by rule or order, but is not permitted to arbitrarily enforce rules on registration. In this case, the corporation would be selling securities within the State that would have to be registered by qualification. As with all registered securities, the company would then have to file and abide by sales literature requirements.
Under the Uniform Securities Act when an investment advisory firm terminates an investment adviser representative, what filing must the firm perform? (A)Letter of resignation from the IAR to the IA Firm (B)U-5 Registration Form (C)Form ADV (D)Letter of termination from the IA Firm to the IAR
[B]U-5 Registration Form Under the Uniform Securities Act, the termination of an Agent or an Investment Adviser Representative will be reported by the filing of a U-5 Form. Form U-4 is completed when a person is hired and becomes registered, U-5 is used when termination occurs.
Which of the following securities would NOT qualify for an exemption and must therefore be registered with the Administrator under the Uniform Securities Act? [A]Bonds issued by the country of Canada [B]A Federal Credit Union for Teachers [C]A security issued by a company to the members of the public of a given state [D]A security issued by an electrical company offering electricity to a particular county of a given state
[C]A security issued by a company to the members of the public of a given state Each of the securities listed qualifies for an exemption EXCEPT for the security that is issued to members of the public of a given state. All other answers qualify for an exemption under the Uniform Securities Act.
Under the Uniform Securities Act, Investment Advisory Firms or Broker-Dealer Firms are subject to which of the following? Both Investment Advisory Firms and Broker-Dealer Firms are required to make prompt amendment to their registration should there be any material changes in the manner in which they do business. Both Investment Advisory Firms and Broker-Dealer Firms are subject to same net capital and recordkeeping rules. Broker-Dealers may use the 5 client exemption rule to avoid registration. Investment Advisory Firms may use the 5 client exemption rule to avoid registration. (A)I, II & IV (B)I, II & III (C)I & IV only (D)I, II, III, IV
[C]I & IV only Under the Uniform Securities Act, both Investment Advisory Firms and Broker-Dealers are subject to recordkeeping but would not be required to maintain the same books and records (e.g., would not have the same requirements). Prompt amendment to registration would be required for both Investment Advisory Firms and Broker-Dealers if there are material changes in the manner in which they do business. Broker-Dealers are NOT allowed to use the 5 client exemption rule, whereas Investment Advisory Firms can.
Under the Uniform Securities Act, an investment adviser is required to advise a client about: Change of address. Addition of new partners to the advisory partnership. Change of adviser's phone number. Addition of new client accounts. [A]I and III [B]II and IV [C]I, II, III [D]I, II, III, IV
[C]I, II, III Investment Advisers must disclose to clients any change in the address of the Adviser, any addition of new partners of the advisory partnership, and any change in the Advisers phone number, but do not have to disclose the addition or deletion of clients of the Adviser.
If you are newly registered with a broker-dealer firm on May 5th. when do you have to renew your registration to adhere to Uniform Securities Act guidelines? (A)No later than the first day, January 1st, of the year following initial registration. (B)No later than May 4th of the year following initial registration.(C)No later than the last day, December 31st, of the year that you are initially registered. (D)No later than May 5th of the year following the year of initial registration.
[C]No later than the last day, December 31st, of the year that you are initially registered. The Uniform Securities Act specifies that registrations expire on December 31st of each year regardless of the date of initial registration. In order to renew registration, the registrant must submit their renewal on or before December 31st, prior to the start of the next year.
If an agent sells a security to a customer, the security must be: [A]Listed on a national securities exchange. [B]Registered with the SEC. [C]Registered or exempted from registration in each applicable state. [D]None of the above.
[C]Registered or exempted from registration in each applicable state. In order for an agent to sell a security, the security must either be registered or exempt from registration.
All of the following securities are exempt from registration under the Uniform Securities Act EXCEPT: (A)Securities issued by a bank, savings and loan, or credit union (B)Securities issued by the US Government or State and Local Governments (C)Securities issued by a corporation which are only offered intrastate (D)Securities that are issued by charitable or educational organizations that are non-profit
[C]Securities issued by a corporation which are only offered intrastate The Uniform Securities Act provides exemptions for various types of securities. All of the securities listed would be included in that list except for the corporation which offers stock intrastate. This corporation would be required to register their securities by qualification.
An Administrator has noticed that there has been regular abuse of an exemption which applies to a specific type of non-profit organization. The Administrator has decided to revoke the exempt status for this type of non-profit. Which of the following is TRUE regarding this scenario? (A)Such a revocation is only permitted once all non-profits claiming the exemption have been notified in advance in writing. (B)Such a revocation is not permitted, because the Administrator has not proven that the exemption is being claimed inappropriately.(C)Such a revocation is within the scope of an Administrator's authority. (D)Such a revocation is permitted, but a hearing must take place where those claiming the exemption are permitted to present their case and a uninterested panel provides a ruling as to whether or not the revocation of the exemption takes place.
[C]Such a revocation is within the scope of an Administrator's authority. Administrators are permitted to issue orders revoking certain exemptions without providing notice to the entities that will be affected and without providing a hearing related to the revocation of the exemption. The Administrator has such authority and is not required to prove that the exemption has been abused by those claiming it.
Big Time Broker-Dealer is expanding and filing initial registration in California. The rules and orders set forth by the Administrator of California require that Big Time Broker-Dealer publish an announcement of their application for registration in several specified newspapers, all of which are published in California. Which of the following is TRUE of this scenario with the rules of the Uniform Securities Act in mind? [A]The Administrator has overstepped their regulatory authority by forcing Big Time Broker-Dealer to spend additional funds to publish the announcement. B]The Administrator has overstepped their regulatory authority, because publication in one newspaper would have been adequate, but multiple newspapers is merely an abuse of power by the Administrator. [C]The Administrator is within their regulatory authority and is specifically permitted to require publication in one or more newspapers during initial registration. [D]The Administrator is within their regulatory authority and can also require Big Time Broker-Dealer to publish such an announcement in a national newspaper and pay for a slot on national television.
[C]The Administrator is within their regulatory authority and is specifically permitted to require publication in one or more newspapers during initial registration. The Uniform Securities Act specifically says that the Administrator may by rule or order require an applicant for initial registration to publish an announcement of the application in one or more specified newspapers published in this state. Big Time Broker-Dealer is filing initial registration in California, so the Administrator of California is within their authority requiring the announcement of their application in several specified newspapers. The Administrator cannot require the broker-dealer to publish such an announcement in national newspapers or on national television. Remember, the Administrator's duty is to his/her state, in this case, California.
According to the Uniform Securities Act which one of the following is true of an applicant for registration who within the past 10 years has been found to have violated securities laws of another state by the administrator? [A]Registration cannot be denied but the administrator may place limits on the applicant's activities. [B]The administrator may not take any action against an applicant for the violation of another state's securities laws. [C]The administrator may deny registration, limit the person's business activities, or bar the person from employment with a registered investment adviser or broker-dealer. [D]Registration cannot be denied but the administrator can require the applicant to maintain bonding as a prerequisite registration.
[C]The administrator may deny registration, limit the person's business activities, or bar the person from employment with a registered investment adviser or broker-dealer. The administrator may deny registration, or limit or bar registration if the administrator finds that denial is in the best interest of the public.
According to Uniform Securities Act, which of the following methods of registration at the state level is used for an established company which has already registered their securities under the Securities Act of 1933? [A]coordination [B]qualification [C]filing [D]description
[C]filing When an issuer of securities has ALREADY been registered at the federal level, the issuing company would file (perform a notice filing) with the state to complete the registration process at the state level. Coordination would take place if the registration were being filed with the SEC and the state at the same time. Qualification is the form of registration used when the issue is only being filed at the state level.
According to the Uniform Securities Act, which of the following is an exempt security as opposed to an exempt transaction? [A]securities in the OTC market [B]the common stock of a European insurance company [C]securities listed on the New York Stock Exchange [D]the debentures of companies incorporated in the state of Delaware
[C]securities listed on the New York Stock Exchange By definition of the Uniform Securities Act, securities listed on a registered stock exchange are considered to be Exempt Securities. The reason they are exempt is because the listing requirements for the exchanges is more stringent than any state's requirements.
Under the Uniform Securities Act, registration of an investment adviser may be revoked for all of the following reasons except: (A)The adviser's liabilities exceed its assets. B)The adviser cannot meet obligations as they come due. (C)The adviser is declared insolvent. (D)A non-participatory shareholder in the adviser is declared insolvent.
[D]A non-participatory shareholder in the adviser is declared insolvent. The administrator may by order deny, suspend, or revoke any registration or bar or censure any registrant's employment for several reasons. One such reason is insolvency, meaning liabilities exceed assets and the registrant cannot meet obligations as they come due. Please refer to the study pages for additional reasons.
The types of registration of securities under the Uniform Securities Code are: Coordination Qualification Notification Description (A)I, II, III and IV (B)I and III (C)II, III and IV (D)I, II and III
[D]I, II and III Choices I, II, and III are types of registration. Coordination for new issues. Qualification for issues offered only within one state. Notification for companies offering securities when the company already has stock publicly traded. But "Description" is not a form of registration.
An Administrator may by order deny, suspend, or revoke any registration of an Investment Adviser for which of the following reasons? The IA has been convicted of a securities related misdemeanor within the past 10 years. The IA has been convicted of a felony at any time The IA is the subject of an order by the Administrator The IA is permanently or temporarily enjoined by a court with relation to a securities industry violation. (A)I & III (B)I, II & III (C)II, III & IV (D)I, II, III & IV
[D]I, II, III & IV All of the choices offered represent reasons why an Administrator may deny, suspend, or revoke the registration of an Investment Adviser. Be careful with relation to misdemeanors. These convictions must be within the past 10 years and must be related to the securities industry or pertinent to ethics (theft, fraud, etc). An IAR would likely have no issues maintaining registration for low-level misdemeanors that are not securities-related.
The anti-fraud provisions of the Uniform Securities Act apply to which of the following? An attorney providing investment advice which is solely incidental to the practice of law An investment adviser representative receives a salary from an advisory firm, but is not compensated directly from clients A broker-dealer that is excluded from the definition of investment adviser A private investor making a one-time sale of securities to another private investor (A)I and II (B)III and IV (C)I, II, III (D)I, II, III, and IV
[D]I, II, III, and IV According to the Uniform Securities Act, anti-fraud provisions apply to all the listed choices. Nothing is exempt from anti-fraud provisions.
The Administrator of a State is permitted to suspend or revoke a registration for a firm if which of the following have occurred? The firm's registration as a member firm with FINRA (Financial Industry Regulatory Authority) has been suspended. The firm's registration as a member firm with the NFA (National Futures Association) has been suspended. The firm's registration as a member firm with a State Insurance Commissioner has been suspended. The firm's registration related to banking has been revoked in the country of Canada. [A]I and II only [B]I and III only [C]I, II, and III only [D]I, II, III, and IV
[D]I, II, III, and IV The Uniform Securities Act states that a registrant's registration can be revoked by the Administrator if the registrant has had a revocation or suspension of registration by any securities regulator or securities regulator of a foreign jurisdiction in the past 5 years.
According to the Uniform Securities Act, which of the following regulatory statements are true: An investment adviser who has no place of business in the state does not need to register if its only clients in the state are insurance companies. When termination or revocation of a broker-dealer's registration occurs, the agent in the broker-dealer's employment registration is also terminated. When registered with the FINRA, registration automatically occurs in all states. Knowingly making false statements on broker-dealer registration application is grounds for denying registration. (A)I, IV (B)II, III (C)II, IV (D)I, II, IV
[D]I, II, IV Choices I, II, and IV are true and correct as stated. Choice III is incorrect because registration must be made in each state individually. It is not automatic.
A Federal Covered Adviser has its main office in State X, with offices in States Y, and Z. The IA also has clients in States A, B, and C. Once a year the adviser holds a seminar and solicits business in State M. Under the Uniform Securities Act, where would this Federal Covered Adviser be required to register by qualification? (A)States X, Y, and Z (B)States A, B, and C (C)All of the States listed (D)None of States listed
[D]None of States listed A Federal Covered Adviser (FCA) would register with the SEC and is exempt from state registration by qualification under the Uniform Securities Act. A notice filing may be necessary in states where the FCA has a place of business or where the FCA has no place of business but deals with 6 or more retail clients or holds themselves out to be an FCA through advertising, seminars, and solicitations.
Roscoe is an agent of a broker-dealer where he has been employed for 5 years. Roscoe is terminated by the broker-dealer today. When must the state securities administrator be notified of the termination? [A]Terminations effected by the employing broker-dealer require notification on the same day of occurence [B]Within 3 business days [C]Within 3 calendar days [D]Promptly
[D]Promptly When an agent begins or terminates employment, the state securities administrator must be notified promptly by both the firm and individual are responsible for notifying the Administrator. The length of time the employee is a registered person is not a consideration.
After initial registration of a Broker-Dealer Firm, all of the following statements would apply to the firm except: [A]The Administrator may conduct investigations within or outside of the state at any time [B]The Firm is subject to record keeping requirements [C]The Administrator may publish information concerning any violation [D]The Firm is only required to file material changes with the State semi-annually
[D]The Firm is only required to file material changes with the State semi-annually Broker-dealers are subject to record keeping requirements. The Administrator may conduct investigations within or outside of the state, and may publish information concerning any violation. If there are material changes in the manner in which the Broker-Dealer does business PROMPT notification, not semi-annual notification is required.
