Series 63 Questions
The statute of limitations for filing a claim alleging a criminal violation of the Uniform Securities Act is:
5 years The statute of limitations for filing claims under the Uniform Securities Act is 5 years. (Note, in contrast, that Federal law is 3 years).
As a condition of registration, the Uniform Securities Act requires that broker-dealer records be kept on file for:
for the time period prescribed by Federal law Under the Uniform Securities Act, records maintained by broker-dealers and investment advisers that are subject to federal registration must be maintained for the time period prescribed under federal law. For those advisers who are not federal covered, the records must be maintained for a period of time specified by order of the Administrator. Also note that the Administrator can lengthen or shorten the record retention requirement.
The instrument that permits aggrieved parties to serve legal documents to the Administrator in lieu of serving them directly to the party that is the object of the lawsuit is called a:
process of consetn
Criminal violations of the Uniform Securities Act are punishable by:
$5,000 fine and 3 years in jail Under the Uniform Securities Act, criminal violations are punishable by a $5,000 fine per offense and up to 3 years in prison. In contrast, criminal violations of Federal law are punishable by a $10,000 fine per offense and up to 5 years in prison.
Administrators can require minimum Net Capital and Net Worth for whom?
Broker-Dealers and investment advisers Note: there is no requirement for agents or IARs, and issuers do not register under the Act
A block trade is a trade of at least:
10,000 shares
Which statement is TRUE about the delivery of a final prospectus to the purchaser of a non-exempt new issue security?
A final prospectus must be delivered, at, or prior to, confirmation of sale, to any person who purchases the issue . In connection with the sale of any non-exempt new issue to a customer, the final prospectus must be delivered to the customer, at, or prior to, confirmation of sale. There are no exceptions!
Annual renewal of registration as an agent or an investment adviser in each State is made by filing:
A standard registration form (Form U-4) in used for federal and state registration of agents and state registration of investment adviser representatives. CRD and IARD send out renewal statements for each registered person in mid-November, and these must be filed, amended (if necessary), and paid for, by mid-December. If this does not occur, that person's registration will expire on December 31st.
The State Administrator is supervised by:
Secretary of State The State Administrator is part of the Secretary of State's office in the majority of States. Also note in some States, the State Administrator is part of the Attorney General's office, or the State Department of Corporations, Commerce, Business Services, or the State Securities Commission, none of which are offered as choices.
An investment adviser has 1 main office and 3 branch offices, all located in different States. Which statement is TRUE about recordkeeping requirement for the adviser under the Uniform Securities Act?
The adviser must keep its records based on the rules of the State where its main office is located
security can result in: I Civil liability II Civil penalties III Criminal liability IV Criminal penalties A. I and II only B. III and IV only C. I and IV only D. II and III only
The best answer is B. This is a subtle question. The willful omission of material facts can result in Criminal Liability and Criminal Penalties. The unintentional omission of material facts when offering or selling a security results in Civil Liability under the Act. There are no Civil Penalties.
Under the Uniform Securities Act, which of the following securities is non-exempt? A. Equipment trust certificates issued by a railroad subject to ICC regulation B. Common stock issued by savings and loans C. Warrants issued by industrial corporations D. Unlisted debentures of a company whose common stock is listed on the American Stock Exchange (NYSE American)
The best answer is C. Warrants issued by industrial corporations are non-exempt. Under State law, senior securities (bonds and preferred stock) and "equal" securities (warrants or rights) of companies already listed on a recognized stock exchange are exempt. This is termed a blue chip exemption. Also note that the securities of issuers listed on the major exchanges (NYSE, AMEX (NYSE American) and NASDAQ) are now federal covered securities and cannot be required to be registered in the State. Securities of issuers subject to ICC regulation (common carriers) are exempt. Issues of banks and savings and loans are exempt (these are regulated by the State banking laws).
Which of the following statements is (are) TRUE regarding the conduct of customer accounts? I An agent may not personally guarantee a customer's account against loss II An agent may not recommend the use of options to hedge a customer's account against loss III Agents may not share in the gain or loss in a customer's account A. I only B. I and II C. I and III D. II and III
The best answer is C. Agents may not personally guarantee a customer's account against loss, nor may they share in the gains and losses of a customer's account unless very specific requirements are met. There is no prohibition on agents' recommending the use of options to hedge a customer's account, since this is a valid and popular reason for using options.
All of the following are EXCLUDED from the definition of an agent EXCEPT an individual who represents the issuer in the: A. sale of municipal securities to the public B. private placement of common stock C. sale of common stock to the issuer's employees D. sale of federal covered common stock to the public
The best answer is D. Excluded from the definition of an agent are individuals who represent issuers (not broker-dealers) in: •Sales of specified exempt securities such as Treasury, Agency and Municipal debt (but not all exempt securities); •Exempt transactions, such as the sale of securities only to institutions or underwriters or private placements as defined under State law; •Sales of specified covered securities (basically private placement issues and sales to persons with investment assets of at least $5,000,000 and investment managers handling assets of at least $25,000,000) - however if the individual is selling federally covered "nationally traded" securities or investment company securities, he or she must register as an agent; and •Sales of securities to employees of that issuer if no remuneration is paid - (the example here is a corporate employee who places company stock into employee 401(k) accounts). In these transactions, either the security being sold is extremely safe (such as governments, agencies or municipals); or the sale is not being made to the general public. If the individual is representing an issuer selling a security that must be registered, including federal covered "nationally traded" stocks and investment company issues, that person must be registered in the State as an agent.
NASAA has the power to set record retention rules for a Federal Covered Adviser that cover which of the following records? I Communications to 2 or more persons II E-mails to clients III Trial balances IV General ledger A. I and II only B. III and IV only C. I and IV only D. None of the above
The best answer is D. NASAA does not set rules for federal covered advisers - only the Investment Advisers Act of 1940 applies! NASAA rules for IAs only apply to State-registered advisers (those advisers with less than $100 million of assets under management).
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
The best answer is D. NASAA does not set rules for federal covered advisers - only the Investment Advisers Act of 1940 applies! NASAA rules for IAs only apply to State-registered advisers (those advisers with less than $100 million of assets under management).
Which of the following are requirements for an internet communication (a website) posted by a broker-dealer, agent, investment adviser or investment adviser representative? I The communication must be limited to the dissemination of general information on products or services II The communication must include a firewall or other implemented procedure to ensure that prior to any subsequent communication with prospective clients in the State, that the broker-dealer, agent, investment adviser, or investment adviser representative are registered in the State, or are exempt or excluded from registration III The communication must include a legend that states that: "The broker-dealer, agent, investment adviser or investment adviser representative may only transact business in the State if registered in the State or if exempted or excluded from registration" IV The communication must include a legend that states that: "Follow ups or individualized responses to persons in the State by the broker-dealer agent or investment adviser representative that involve either effecting or attempting to effect transactions in securities, or the rendering of personalized investment advice for compensation, will not be made absent compliance with State registration requirements or an applicable exemption or exclusion." A. I and II only B. III and IV only C. I, II, III D. I, II, III, IV
The best answer is D. Since the internet can be viewed from anywhere, Uniform State Law gives a safe harbor to having to register in a State if the following legend appears on the site: "The broker-dealer agent or investment adviser representative may only transact business in the State if registered in the State or if exempted or excluded from registration;" and "Follow ups or individualized responses to persons in the State by the broker-dealer agent or investment adviser representative that involve either effecting or attempting to effect transactions in securities, or the rendering of personalized investment advice for compensation, will not be made absent compliance with State registration requirements or an applicable exemption or exclusion." So, basically, the disclaimer required is that anyone who views the site cannot be solicited by persons associated with the site unless those persons are registered in that State (or are excluded or exempt from registration). The internet communication cannot be overtly promotional; and the broker-dealer or investment adviser must put in a firewall or procedures that make sure that viewers of the site are not contacted by agents or investment adviser representatives to buy securities or advisory services unless the agent or IAR is appropriately registered in the State.
A Registered Investment Adviser publishes a web-based newsletter. He is approached by a marketing firm for a list of the RIA's customers. The marketing firm is not going to pay for the customer list, but has agreed to give the RIA computer equipment that will be used in publishing the RIA's newsletter. This action is: A. permitted because it directly benefits the RIA's customers B. permitted because the SEC permits the payment of "soft dollars" C. prohibited because the computer equipment qualifies for accelerated depreciation deductions under IRS rules D. prohibited because the RIA did not get written permission from each client to release their information
The best answer is D. The names and addresses of an RIA's customers are private and cannot be "sold" or distributed to another person, unless each customer consents in writing. The fact that the RIA was compensated for giving the customer list by receiving computer equipment instead of cash has no bearing on this violation.
A Federal Covered Adviser discovers a material error in its Form ADV. When must Form ADV be amended with the State to correct the error?
Within 30 days
To protect against identity theft and theft of funds, client instructions received electronically must be:
authenticated
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:
has taken out a surety bond Under State law, if an investment adviser will not take custody of a client's funds, there is no surety bond requirement. However, if the adviser will take custody, it must have a minimum net worth or minimum surety bond coverage of $35,000.
Which of the following are generally required to be included in the State registration application of a broker-dealer or investment adviser? I Consent to service of process II Business history of applicant III Fingerprints of the officers IV Books and records of the broker-dealer used by the applicant
I, II, III State registration applications for a broker-dealer or investment adviser must include: •The applicant's form and place of organization; •The applicant's proposed method of business; •The qualifications and business history of the applicant and each of its officers or partners; •Any injunction, administrative order or conviction of a misdemeanor involving a security or any aspect of the securities business and any conviction of a felony; •The applicant's financial condition and history; and •Any information to be furnished to a client (the "brochure") if the applicant is an investment adviser. Also note that the initial application must be accompanied by a consent to service of process, which appoints the Administrator as attorney for the applicant. Any lawsuits filed in court against a broker-dealer or investment adviser will result in a subpoena sent to the Administrator; who will then forward it to the registrant (broker-dealer or investment adviser) that is being sued. As part of the registration application, fingerprints are required by most states (Choice III). However, if the applicant already has fingerprints on file with FINRA as part of a U-4 filing, then the State will not require an additional fingerprint filing. Note that there is no requirement for filing of the books and records of the broker-dealer as part of the application, making Choice IV incorrect. (Note, however, that the Administrator has the power to inspect books and records of a BD or IA at will.)
Which of the following information MUST be recorded on an executed order ticket? I Time of execution II Time of receipt III Account number IV Solicited or unsolicited
I, II, III, IV
An Administrator is allowed to start a suspension or revocation action against a registered broker-dealer: I on the basis of facts known at the time of the initial registration II after one year has elapsed from the time a broker-dealer withdraws from registration III on the basis of a conviction for violating the Securities Exchange Act of 1934 IV on the basis of a suspension order being entered by the Administrator of another State
III and IV The Administrator cannot suspend or revoke a broker-dealer's registration on the basis of facts known at the time of the initial registration. If there was a problem with the initial registration based on those facts, then registration would have been denied. If a broker-dealer withdraws from registration, after 1 year elapses, legal proceedings cannot begin against the broker-dealer to suspend or revoke the registration. The Administrator can start a suspension or revocation action if another State suspends the firm or if the firm is convicted of violating the Securities Exchange Act of 1934
If an investment adviser buys out another investment advisory firm, which statement is TRUE about filing fees paid to the State?
No additional filing fee is required f an investment adviser "buys out" another advisory firm, then the firm that is "bought out" ceases to exist; and the accounts of the firm that is "bought out" become part of the existing acquiring advisory firm. No additional filing fee must be paid by the acquiring advisory firm, since a new firm is not being created. As an additional note, if a new "successor" firm were created from the merger of 2 firms, the State Administrator will allow the successor firm to complete the predecessor firm's filing year, so no additional fee would be required either.
An investment adviser representative quits her employment with a State-registered adviser so that she can attend graduate school. After completing her MBA, she intends to reassociate with the same advisory firm in a management capacity. Which statement is TRUE about notifying the State Administrator of the IAR's termination?
Only the Investment Adviser is required to notify the Administrator, but if the IAR learns that the adviser has not given notice, the representative must do so If a representative of an investment adviser terminates employment, the adviser must notify the Administrator promptly. If the representative learns that the adviser has not given notice, then the representative must do so promptly. Also note that this is different than the requirement for a federal covered adviser, where only the investment adviser representative must notify the State Administrator.
Under the provisions of the Uniform Securities Act, required records for broker-dealers must be kept in accordance with the provisions of the: Securities Act of 1933 B Securities Exchange Act of 1934 C Investment Advisers Act of 1940 D Uniform Securities Act as adopted in that State
Securities Exchange Act of 1934
A customer that lives in State A is traveling by air to State C. While he is changing planes in State B, he receives a call on his cell phone from his broker, who solicits him to buy a security. He places the order with his broker and boards his connecting flight to State C. When he returns to his home in State A, he finds the trade confirmation in his mailbox. Which State Administrator(s) has (have) jurisdiction over the transaction? A. State A only B. State B only C. Both State A and B D. States A, B and C
The best answer is A. This is an existing customer that is temporarily in State B when he is changing planes to catch a connecting flight. In such a case, only the Administrator of the customer's home State (State A) has jurisdiction. If the customer were to spend a lot of time in State B (some States apply this if more than 2 weeks are spent in the State; others apply it after 30 days are spent in the State), then State B would also have jurisdiction. State C has nothing to do with this trade.
If a sole proprietor wishes to register with the State as an Investment Adviser, which of the following documents are required? I Financial statement of the sole proprietor II Income statement of the sole proprietor III An auditor's opinion that the document filed is true and current IV An affirmation made by the sole proprietor that the document filed is true and current A. I and III B. I and IV C. II and III D. II and IV
The best answer is B. A sole proprietorship is an unincorporated business that consists of 1 person. Sole proprietors can register in a State as a broker-dealer or as an investment adviser. Each applicant for initial registration that is a sole proprietor must file an original statement of financial condition (a balance sheet) with the Administrator, along with an oath or affirmation made by the sole proprietor that the financial statement is true and current. Note that there is no requirement for an income statement or for audited financial statements of the sole proprietor.
An investment adviser directs its trades to a broker-dealer paying non-discounted rates. In return, the broker-dealer is permitted to give the investment adviser: A. software for the IA's back-office operations B. software that compares asset allocation models used by the IA C. software that books travel at the lowest cost to the IA D. nothing of value
The best answer is B. The SEC and State Administrators permit so called "soft dollar" arrangements. An adviser may direct its portfolio trades to a brokerage firm that charges a higher commission (as opposed to the lowest-cost broker) in return for the adviser getting something of value from the broker-dealer, such as research reports, asset allocation software, stock screening software, etc. The "idea" is that the value of the broker-dealer "give-back" is much higher than the "extra commission" amount paid to the broker-dealer by the adviser and will enhance the adviser's investment returns, which will benefit the adviser's clients. Note that the "give-back" under a soft dollar arrangement cannot benefit the IA - it must benefit the IA's clients.
Under the Uniform Securities Act, which statements are TRUE about an agent's registration? I Once an agent is registered in one State, that agent is registered in all 50 States II Once an agent has filed a registration application in a State, it is effective within 10 days of application III Unless the State adopts another rule, registration expires on December 31st of each year IV If an agent terminates employment with a broker-dealer, the agent's registration is terminated A. I and II only B. III and IV only C. II, III, IV D. I, II, III, IV
The best answer is B. Once an agent completes a registration application that is accepted by the State, the license does not become effective for 30 days, making Choice II incorrect. The license is only granted for that State; for example, to be licensed in 6 different States, 6 different applications must be submitted. In most states, the license expires on December 31st of each year - therefore an annual renewal is required. If the agent leaves a broker-dealer, the agent's license is revoked. To reactivate the license, the agent must associate with another registered broker-dealer.
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? A. 2 calendar days B. 5 calendar days C. 10 calendar days D. 15 calendar days
The best answer is C. A member, who acted as manager or co-manager of an initial public offering for an issuer, may not issue research reports regarding the issuer within 10 calendar days following the effective date of the offering.
An agent of a broker-dealer maintains accounts for immediate family members, including an account for his brother-in-law. The agent is having a bad year, and his brother-in-law offers to lend him $20,000 until things get "better." Which statement is TRUE regarding this offer? A. As long as the loan amount is documented in writing and has a fixed repayment date and fixed interest rate, this is permitted B. As long as the terms of the loan are the same as would be offered in an arm's length transaction by an unaffiliated third party lender, this is permitted C. This offer cannot be accepted because borrowing money from a customer is an unethical business practice D. This offer cannot be accepted because borrowing money from family members that are customers is only permitted from direct family members - not from "in-laws"
The best answer is C. An agent cannot borrow money personally from a customer - nor can an agent lend money personally to a customer. It makes no difference if the customer is a family member. Note, however, that the agent could borrow money from, or lend money to, family members that are NOT customers. Also note that NASAA has a different interpretation than FINRA on this matter. FINRA permits borrowing between a representative and a customer that is an immediate family member, as long as the loan is documented in writing and approved by the firm; NASAA takes the stance that some of the worst abuses occur when money is borrowed from a family member that is a customer and outright prohibits it! Wouldn't it be nice if they could come up with a consistent rule for both of them!
Under the NASAA Statement of Policy on unethical practices, all of the following investment advisers would be able to loan monies where securities are collateral for the loan EXCEPT an investment adviser that: A. has a registered broker-dealer that lends money to a customer through the broker-dealer affiliate B. is a subsidiary of a parent bank that lends money to a customer through the bank affiliate C. is a partnership that lends money to a customer under the provisions of Regulation T of the Federal Reserve Board D. is a corporation that lends money to its officers
The best answer is C. An investment adviser is not permitted to lend money to a customer, unless the investment adviser does so through an affiliated "regulated lender." An affiliated broker-dealer is regulated under Regulation T and can lend money to a customer; as can an affiliated bank. An adviser can lend monies to its officers or employees because they are not customers.
The Uniform Securities Act subjects agents and broker-dealers who violate the Act's provisions to which of the following? I Civil Liability II Civil Penalties III Criminal Liability IV Criminal Penalties A. I and II only B. III and IV only C. I, III, and IV D. I, II, III, IV
The best answer is C. The Uniform Securities Act provides for civil liability for unintentional violations of the Act (refund of customer's money plus 6% interest and attorney's fees). For intentional (and serious) violations, the Act provides for criminal liability (jail!) and criminal penalties ($5,000 fine per offense). The Act does not provide for civil penalties (that is, civil fines). These could only be imposed if an action were taken in civil court and the judge imposed punitive damages.
A representative is making a presentation to a married couple, ages 77 and 81, about their need for continuing income as the expected life spans of the general population have increased. The representative is strongly recommending that the couple buy an equity indexed annuity (EIA). Which statements made by the representative would be misleading and fraudulent? I "EIAs guarantee a minimum rate of return that is equal to the Standard and Poor's 500 Index" II "I do not earn any commissions when I sell you an EIA" III "EIAs are tax qualified, allowing you to reduce your taxable income by deducting any contribution that you make" IV "EIAs provide a minimum guaranteed rate of return that is guaranteed by the issuing insurance company" A. I and III B. I and II C. I, II, III D. I, II, III, IV
The best answer is C. Equity indexed annuities (EIAs) are an insurance product that falls somewhere between a fixed annuity and a variable annuity. They give a return linked to a well-known index, such as the Standard and Poor's 500 Index, but the return is typically capped to a maximum interest rate per year. Thus, if the cap is 10% and the S&P 500 Index grows by 15%, the customer only gets a 10% return for that year. Thus, Choice I is a misleading statement. Technically the salesperson does not earn a commission, but he or she does earn a very steep sales charge, so Choice II is misleading. There is no deduction for contributions to the contract (these are non-qualified plans) making Choice III a misleading statement. Choice IV is true - the contracts have a minimum guaranteed rate of return (like around 4%) that is guaranteed by the insurance company. Of course, if the insurance company fails (which rarely happens, but it has happened), then the guarantee is worthless.
Under the Uniform Securities Act, it is unlawful for any person to offer or sell any security in a State unless the: I security is registered in the State II security is exempt from registration in the State III transaction is exempt in the State IV transaction is non-exempt in the State A. I only B. II and III only C. I, II, III D. I, II, III, IV
The best answer is C. Uniform State law requires that for a security to be sold or offered in a State, it must be registered in that State; or it must be a federal covered security; or it must be exempt from registration; or it must be sold in an exempt transaction. If a security is sold in a non-exempt transaction, then that security must be registered in the State. Also, please note that if an agent of a broker-dealer offers a security in a transaction that is either exempt or non-exempt - that agent must still be registered in the State!
The term "issuer" applies to a:
person who proposes to sell a security An "issuer" is defined as any person who issues, or proposes to issue, a security. Directors of companies that are selling new issues are not issuers. However they can be defined as "agents" of the issuer. Traders execute trades in the secondary market and have nothing to do with issuers. Market makers also trade stocks for their own accounts in the secondary market and have nothing to do with issuers.
Which of the following statements are TRUE regarding private placements under the Uniform Securities Act? I No commissions can be paid for sales to individual investors II No more than 10 prospective investors may be contacted III General advertising is prohibited A. III only B. I and II C. II and III D. I, II, III
The best answer is D. Private placements under State law differ from the Federal law private placement exemption. Under State law, a private placement is an offer of securities to no more than 10 persons, where no commissions can be paid for sales to individual investors (they can be paid on sales to institutional investors). Advertising is prohibited, since advertising would make this an offer to the general public - not a "private placement." In contrast, under Federal law, a private placement is a sale of securities to no more than 35 "non-accredited" investors. No advertising is permitted; and Federal law is silent about commissions (thus, they can be paid).
If a registered investment adviser takes custody of client funds or securities and deposits them with a qualified custodian, which statement is NOT true? A. The customer must be notified promptly in writing of the qualified custodian's name, address and the manner in which the securities are held B. The customer must be sent, at least quarterly, an account statement identifying all positions held and all transactions in the account during that period C. All client funds and securities positions must be verified at least annually by a certified public accountant on a surprise basis D. A written discretionary authority must be obtained from each client for whom funds are being held in custody
The best answer is D. If an investment adviser wishes to take custody of client funds or securities: •It must notify the Administrator in writing on Form ADV that it has, or may have, custody; •Custody must be kept by a qualified custodian in a separate account under each client name; or in accounts that only contain client funds and securities, held in investment adviser name as trustee for the clients; •Prompt notice must be given to the clients in writing of the qualified custodian's name, address, and the manner in which the funds or securities are maintained; •Account statements must be sent at least quarterly to clients; •The IA must be audited annually on a surprise basis to verify customer funds and securities positions. Exercising discretion in an advisory account is a totally different idea. The adviser needs the written consent of the client to exercise discretion, but that adviser who has discretion may, or may not, take custody.
Under the Uniform Securities Act, all of the following measures must be taken to ensure the integrity of data stored electronically EXCEPT: A. the records must be preserved in a non-rewritable format B. the records must be preserved in a non-erasable format C. a separate copy of the records must be stored in a different location from the original records D. the records must be encrypted using an algorithm approved by FIPS
The best answer is D. In order to ensure the integrity of electronically stored data, the storage medium must be non-rewritable and non-erasable. A separate duplicate copy must be retained in another location. There is no requirement for the record to be encrypted - this makes no sense since the records being stored are "old" and are not being viewed by anyone who would improperly use the data.
The policy of securities regulators regarding emails sent or received by agents maintains that:
records must be kept of both personal and business emails The recordkeeping rules require the retention of e-mail. Both FINRA and SEC rules require the retention of BOTH business and personal emails, since representatives will often send business related e-mails from home computers and personal electronic devices.
All of the following statements are TRUE about broker-dealers under the Uniform Securities Act EXCEPT a broker-dealer:
is not required to register in a State unless it has an office in that State Any broker-dealer that has an office in a State; or one that solicits in a State; must register in that State (making Choice D false). A broker-dealer can also register as an investment adviser in the State (which it must do if it offers "wrap" accounts - which States consider to be advisory products). A broker-dealer is a person (in the "legal" sense of the word) that effects securities transactions for customer accounts or for its own account. Broker-dealers can be structured as any legal business form allowed in the State. These business forms are sole proprietorships, partnerships, and corporations.
Under the Uniform Securities Act, copies of order memoranda maintained by investment advisers must contain all of the following EXCEPT:
time of order execution Order ticket information required for investment advisers is different than that required for broker-dealers. The IA writes an order and sends it to a broker-dealer or bank for execution. The IA must keep a record of the order as it was sent; the IA does not keep the record of the actual execution of the order - this is the responsibility of the executing broker-dealer. The record must contain the terms and conditions of the order; name of the person at the IA who recommended the transaction; name of the person who placed the order; date of order entry; name of account for which order was entered; name of broker-dealer or bank to which the order was sent for execution; and whether the order was discretionary.