Series 66 exempt
Which of the following transactions meets the definition of an exempt transaction under the Uniform Securities Act? a. An issuer transaction of a security filed under the Securities Exchange Act b. A nonissuer transaction of a security filed under the Investment Company Act c. An isolated issuer transaction d. Any sale of a security for which a registration statement has been filed with both the Administrator and the Securities and Exchange Commission
A nonissuer transaction of a security filed under the Investment Company Act Any nonissuer transaction of a security registered under the Securities Exchange Act, Investment Company Act, or an isolated nonissuer transaction would be considered exempt transactions. Any offer, but not sale, of a security filed with both the Administrator and SEC would be considered an exempt transaction. (62443)
The Simon Morris Insurance Company is a large sponsor of variable annuities and is located in State I. The company also owns a broker-dealer with offices in States W and I, and is registered in States X and Y. An agent of the broker-dealer selling the company's variable annuity products would be required to take which of the following actions? a. Disclose the relationship to clients in States W, I, X, and Y b. Disclose the relationship to clients of States W and I only c. Disclose the relationship to clients of State I only d. Refund any fees charged by the insurance company to clients of the broker-dealer
a. Disclose the relationship to clients in States W, I, X, and Y Failing to disclose that a broker-dealer is affiliated with or controlled by an issuer of securities is considered a dishonest and/or unethical business practice. The agent would need to disclose the affiliation before entering into any contract with any client that will be purchasing the variable annuities. The disclosure may be made verbally prior to the trade if written disclosure is made at or before the completion of the transaction (usually the settlement date). The broker-dealer or insurance company is not required to refund any fees charged to clients. (62654)
Under the Uniform Securities Act, which of the following statements is NOT TRUE concerning the state registration of an agent? a. An agent may only sell securities that have been properly registered in a state or qualify for an exemption from registration b. An agent's registration to sell securities in a given state expires at the end of the broker-dealer's fiscal year c. An agent may only solicit business in a state if both the agent and broker-dealer are registered in that state d. If an agent leaves a broker-dealer to go to another broker-dealer, the agent and both broker-dealers must notify the Administrator of the change
b. An agent's registration to sell securities in a given state expires at the end of the broker-dealer's fiscal year The licenses of all agent, broker-dealer, investment adviser, and investment adviser representatives expire on December 31 each year and must be renewed in order to be effective. Renewal is accomplished by the payment of a filing fee. (62046)
According to the Uniform Securities Act, persons providing investment advice are NOT required to register as investment advisers if the adviser: I. Deals only with insurance or investment companies and has only one office in the state II. Is a savings institution, bank, or trust company III. Is in a profession such as accounting or law, where the performance of this service is incidental IV. Conducts business exclusively with broker-dealers and other investment advisers and maintains branch offices only in the state a. I, II, and III only b. II and III only c. IV only d. I, II, III, and IV
b. II and III only Choices (II) and (III) are specifically excluded from the definition of investment adviser under both the Uniform Securities Act and the Investment Advisers Act. The advisers in choices (I) and (IV) would not need to register as investment advisers if they did not have a place of business in the state. (62411)
Under the Uniform Securities Act, all of the following statements are TRUE regarding the requirements for investment advisers that have a place of business in a state, EXCEPT: a. They may be required to file financial reports with the Administrator b. They must retain records as required by the Administrator c. The Administrator will inspect their books and records annually d. They are required to update their registration statement promptly if it becomes materially inaccurate
c. The Administrator will inspect their books and records annually An Administrator will not inspect the books and records of an investment adviser on an annual basis. However, if an IA has custody of customer funds, an independent public accountant must perform an annual audit. All of the other choices are true. (67596)
A broker-dealer would be required to register in Pennsylvania if the broker-dealer: I. Has an office in Pennsylvania and executes nonissuer transactions of securities listed on a national securities exchange II. Has no office in Pennsylvania and executes nonissuer transactions of securities listed on a national securities exchange with clients that are residents of Pennsylvania III. Has an office in Pennsylvania and executes transactions of municipal securities with clients that are not residents of Pennsylvania IV. Has no office in Pennsylvania and executes transactions of municipal securities with clients that are residents of Pennsylvania a. I and II only b. I and III only c. III and IV only d. I, II, III, and IV
d. I, II, III, and IV In all four choices, the broker-dealer would be required to register in Pennsylvania. A nonissuer transaction of a security listed on a national securities exchange is an exempt transaction and a municipal security is an exempt security. A broker-dealer executing a transaction in an exempt security or exempt transaction is required to register, unless it is exempt from the definition of a broker-dealer in that state. Since the broker-dealer either has an office in Pennsylvania or is transacting business with residents of that state, it would be required to register. (62678)
Under the Uniform Securities Act, a person whose advice is limited to U.S. government agency securities is defined as a(n): a. Federal covered adviser and is not required to register with the Administrator b. Agent and required to register with the Administrator c. Broker-dealer, but not required to register since the securities are exempt d. Investment adviser and must register with the Administrator
d. Investment adviser and must register with the Administrator There is no exemption or exclusion under the Uniform Securities Act for a person providing advice solely related to U.S. government securities. However, under the Investment Advisers Act of 1940, a person whose advice is limited to direct obligations of the U.S. government is not required to register. Since the person is not effecting transactions, he would not be defined as a broker-dealer or an agent. (67752)
An investment adviser is registered in 10 states. The firm wants to transact business with three clients in a state in which it is not registered. According to the Uniform Securities Act, which of the following statements is TRUE? a. The firm would be required to register in the new state if the clients were not accredited investors b. The firm would be required to register in the new state if the clients were employee benefit plans with assets greater than $1,000,000 c. The firm would be required to register as an investment adviser with the SEC since it is now doing business in more than 10 states and is defined as a federal covered adviser d. The firm would not be required to register as an investment adviser if it did not lease an office in the state in which it is not registered
d. The firm would not be required to register as an investment adviser if it did not lease an office in the state in which it is not registered According to the Uniform Securities Act, if a firm has five or fewer clients in a state (during a 12-month period) in which it has no office, it is exempt from registration in that state. Also, if all the clients, regardless of their number, are banks, trust companies, insurance companies, or employee benefit plans, the firm is exempt from state registration. (62967)
