Regulations - Other Federal and State Regulations

Question 1

Trust indenture act of 1939 passed after act of 1933 to further protect ______

Answer 1

bondholders

Question 2

The Trust Act of 1939 requires that all INTERSTATE offerings of ______ bonds of more than ______ must be made with a Trust Indenture

Answer 2

non-exempt, $50m or more

Question 3

Generally, __________ act as the trustee for corporate bond issues.

Answer 3

commercial banks

Question 4

The Investment Advisers Act of 1940 requires that an investment adviser register with the SEC if they give advice interstate to _____ or more.

Answer 4

15 people

Question 5

BDs are _____ considered investment advisers unless they offer “wrap accounts” that charge a single fee.

Answer 5

are not unless they offer a wrap account

Question 6

Federal covered advisers either advice ______ or manage over _______ of assets

Answer 6

either give advice to investment companies (as defined in the Investment Company Act of 1940) OR have over $100m in assets under management

Question 7

State level advisers have less than ______ in AUM

Answer 7

$100m

Question 8

The Securities Investor Protection Act of 1970 was designed to protect customer _____

Answer 8

assets

Question 9

SIPC insurance covers each customer up to ______, including cash coverage not exceeding _____

Answer 9

$500,000; cash coverage up to $250,000

Question 10

The Federal Telephone Consumer Protection Act of 1991 protects customer from overly aggressive ______

Answer 10

cold callers

Question 11

Cold calls cannot be made before ____ or after ____; caller must identify him or herself by ____, ____, and ____, and customers who do not want calls must be placed on the _____

Answer 11

8am to 9pm; name, firm, and address or phone number; must be placed on DNC list

Question 12

The _____, states, and private citizens enforce the cold calling rule.

Answer 12

FTC

Question 13

To be exempt from the cold calling restrictions, either you must have an _______ business relationship with the customer or _____ consent to call them after hours

Answer 13

established business relationship OR written consent

Question 14

An “established” customer relationship to call after hours means:

Answer 14

• made a transaction or had a security at the firm in the past 18 months
• has contact the member to inquire about products or services in the preceding 3 months

Question 15

Under the SO Act of 2002, an accounting firm cannot simultaneously provide any ______ services to an issuer if they are also their auditor

Answer 15

non-audit services

Question 16

Under the SO Act of 2002, an accounting firm must report to an _______ audit committee at the issuer

Answer 16

independent

Question 17

Under the SO Act of 2002, the CFO and CEO of the issuer cannot have been employed with the company’s ____ firm for more than ____ preceding the audit

Answer 17

audit firm for more than 1 year preceding the audit

Question 18

Under the SO Act of 2002, the CFO and CEO of the issuer must certify, annually, that the info in the 10K and 10Q is _______

Answer 18

appropriate (aka accurate)

Question 19

Under the SO Act of 2002, issuers cannot extend ____ to any officer or director of the company

Answer 19

credit

Question 20

Under the SO Act of 2002, issuers must _____ their disclosures of special events

Answer 20

speed up

Question 21

Under the SO Act of 2002, insiders are prohibited from trading their own company’s stock during the ______

Answer 21

blackout periods

Question 22

Under the SO Act of 2002, insiders must report their trades in the company’s shares within ____ business days of the event

Answer 22

2 business days

Question 23

Registrations by coordination coordinates the ____ with the _____ registration

Answer 23

SEC with the state registration

Question 24

Registration by qualification is used by a company that has never _____ before in that state

Answer 24

has never filed before (this is most difficult way of registering with a state)

Question 25

Registration by filing (notification) is when a company has _____ filed with that state

Answer 25

previously - this is like a renewal application

Question 26

A securities sales person has to the take the _____ exam; an investment adviser has to take the ____ exam - if they need to do both they can take the ____

Answer 26

63;65;66

Question 27

Investment adviser representative DO NOT have to register ______

Answer 27

federally