Chapter 4

Question 1

When must a broker-dealer register?

Answer 1

1. When has an office in the state
2. They have non-institutional clients in the state

Question 2

If a BD wants to do interstate transactions, who do they have to register with?

Answer 2

SEC and Finra

Question 3

When must an IA register with the state?

Answer 3

1. Has an office in the state
2. has had more than 5 non-institutional in the past year

Question 4

[IA/BD] registers with SEC or the states, [IA/BD] registers with both the SEC and the state.

Answer 4

IA, BD

Question 5

Am I a firm or a natural person? IA, BD, IAR

Answer 5

IA = Firm, BD = Firm, IAR = Natural Person

Question 6

When must an IAR register with the state? and what’s the document?

Answer 6

1. Has an office in the state
2. Has had more than 5 non-institutional clients in the past year

Document U4

Question 7

IARs always register with the ____ and never the ___

Answer 7

state, SEC

Question 8

A federal covered advisor must register with the ___ and not the ____. Advisors with _____ in AUM and over must register.

Answer 8

SEC, State, 110 million

Question 9

What does a federal covered investment adviser need to do in order to work in a state?

Answer 9

The “notice filling” process, (IS NOT STATE REGISTRATION)

Question 10

What are key word indicators that something is a security?

Answer 10

Keywords: Interest in, Certificate, Variable, Option on