State Regulation Under the Uniform Securities Act (USA) Flashcards
Under the USA, all professionals registrations/withdrawals take place when.
At noon, 30 days after completed application.
All registrations of persons expire on
The first December 31 after registration with annual renewal after that. However, registration of securities is effective for one year from the registration date.
Successor firm to a broker dealer (B/D) or Investment Advisor (IA) pays a fee when
does not pay a fee until renewal date.
All professionals file a __________ as a permanent part of their registration.
consent to service of process
A person is NOT
a minor, a dead person, or someone declared mentally incompetent.
If a B/D has an office in a state must
Register
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.
post a surety bond
An Agent exercising discretion (can’t have custody) may have to post
Post a Surety Bond
The Administrator may accept deposits of cash or securities
in lieu of a surety bond
In order for a surety bond to meet the requirements of the uniform securities act, it must
provide that any customer who can prove a violation is entitled to collect against the bond.
Anytime a customer deposits securities with a B/D, A receipt for those certificates mush be issued
Promptly
The following are not securities:
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.
The Term Guaranteed under the USA means.
guaranteed by someone other than the issuer as to principal, interest, or dividends, but NOT capital gains.
A security registered by ____________ becomes effective only with an active review of registration.
Qualification
The most common EXEMPT transactions:
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)
Even if the security or the transaction is exempt the agent of a B/D must
properly registered
Under the USA when an agent terminates association with a B/D, both the agent and the B/D must
Notify the Administrator
Under the USA when an IAR leaves an IA, notification depends on whether the IA is federal or state registered.
If state registered, only the IA notifies the Administrator. If federal covered, only the IAR notifies the Administrator.
Any individual representing a B/D in any form of Securities offer or sale must
Registered
Agents may ____________ with other agents of the same or affiliated B/Ds and don’t have to inform clients of the split.
split commissions
The ____________ provides an exemption from registration for all securities professionals when dealing with vacationing clients subject to 30 day rule fro change of residence.
Snowbird Rule
Any written customer complaint must be promptly brought to the attention of the
appropriate supervisor
A registered agent may accept an unsolicited order for a _________________ because it is an exempt transaction.
nonexempt unregistered security
The Administrator retains the right to have clients acknowledge that the order was _______.
truly unsolicited
