State Regulation Under the Uniform Securities Act (USA)

Question 1

Under the USA, all professionals registrations/withdrawals take place when.

Answer 1

At noon, 30 days after completed application.

Question 2

All registrations of persons expire on

Answer 2

The first December 31 after registration with annual renewal after that. However, registration of securities is effective for one year from the registration date.

Question 3

Successor firm to a broker dealer (B/D) or Investment Advisor (IA) pays a fee when

Answer 3

does not pay a fee until renewal date.

Question 4

All professionals file a __________ as a permanent part of their registration.

Answer 4

consent to service of process

Question 5

A person is NOT

Answer 5

a minor, a dead person, or someone declared mentally incompetent.

Question 6

If a B/D has an office in a state must

Answer 6

Register

Question 7

A B/D exercising discretion or maintaining custody of customer funds/securities may have to ___________ unless the B/Ds net capital is in excess of SEC requirements.

Answer 7

post a surety bond

Question 8

An Agent exercising discretion (can’t have custody) may have to post

Answer 8

Post a Surety Bond

Question 9

The Administrator may accept deposits of cash or securities

Answer 9

in lieu of a surety bond

Question 10

In order for a surety bond to meet the requirements of the uniform securities act, it must

Answer 10

provide that any customer who can prove a violation is entitled to collect against the bond.

Question 11

Anytime a customer deposits securities with a B/D, A receipt for those certificates mush be issued

Answer 11

Promptly

Question 12

The following are not securities:

Answer 12

Retirement Plans (IRAs, Keoghs), Non-Variable insurance contracts (Fixed annuity, Term, whole life, modified endowment), Collectibles, Commodities (including precious metals like gold), Condominiums used as a personal residence, and currencies.

Question 13

The Term Guaranteed under the USA means.

Answer 13

guaranteed by someone other than the issuer as to principal, interest, or dividends, but NOT capital gains.

Question 14

A security registered by ____________ becomes effective only with an active review of registration.

Answer 14

Qualification

Question 15

The most common EXEMPT transactions:

Answer 15

Isolated non-issuer transactions.
Unsolicited orders
Transaction with institutions
Transactions between the issuer and underwriter
Transactions by fiduciaries
Private placements (10 or fewer offers to non-institutional clients within 12 months)

Question 16

Even if the security or the transaction is exempt the agent of a B/D must

Answer 16

properly registered

Question 17

Under the USA when an agent terminates association with a B/D, both the agent and the B/D must

Answer 17

Notify the Administrator

Question 18

Under the USA when an IAR leaves an IA, notification depends on whether the IA is federal or state registered.

Answer 18

If state registered, only the IA notifies the Administrator. If federal covered, only the IAR notifies the Administrator.

Question 19

Any individual representing a B/D in any form of Securities offer or sale must

Answer 19

Registered

Question 20

Agents may ____________ with other agents of the same or affiliated B/Ds and don’t have to inform clients of the split.

Answer 20

split commissions

Question 21

The ____________ provides an exemption from registration for all securities professionals when dealing with vacationing clients subject to 30 day rule fro change of residence.

Answer 21

Snowbird Rule

Question 22

Any written customer complaint must be promptly brought to the attention of the

Answer 22

appropriate supervisor

Question 23

A registered agent may accept an unsolicited order for a _________________ because it is an exempt transaction.

Answer 23

nonexempt unregistered security

Question 24

The Administrator retains the right to have clients acknowledge that the order was _______.

Answer 24

truly unsolicited

Question 25

Records may be kept on a computer disk that cannot be

Answer 25

Altered.

Question 26

B/D records must be kept for three years and investment adviser records for five years