The State Securities Administrator And The Uniforms Securities Act

Question 1

True or false. The USA requires the administrator to publish all rules and orders

Answer 1

True

Question 2

Has the power to deny, revoke or suspend the registration of a security, an agent, or a firm

Answer 2

The administrator

Question 3

True or false. An administrator may, without prior notice, revoke the exempt status of a Securities transaction

Answer 3

True

Question 4

True or false. If the state Securities administrator issues an order, that order will be enforced against a specific registrant or activity. Also, if this specific registrant files a petition within 60 days the order can be suspended until the petition is answered

Answer 4

False. Any affected party May challenge an administrators order within 60 days of issuance by filing a written petition but during the time that the challenges pending the order will remain in effect

Question 5

True or false. An administrator may enter an order against a registered firm agent or security without holding a hearing

Answer 5

True this is known as a summary order

If the administrator enters an order on a summary basis the administrator must send notice to all parties against whom the order was entered. The notice must provide the details of the order as well as the reasons for entering the order

Question 6

True or false. Parties affected by an administrator’s order must also be notified that a hearing will be granted within 25 days of receipt of a written request

Answer 6

False. The parties must also be notified that a hearing will be granted within 15 days of receipt of a written request

Question 7

The administrator’s order may be appealed to the court system within how many days?

Answer 7

60

Question 8

If the administrator suspends the registration of a firm all of the individuals who are registered with the firm will have their registrations placed in suspense status. After the term of suspension has been completed all registrations will be reactivated. If their firms registration has been revoked all individuals whose registrations were not revoked would be required to find a new firm to become associated with.

Answer 8

Take note

Question 9

Is an administrative order taken against an issuer of a security that stops the security from being sold in the administrator state

Answer 9

Stop order

Question 10

Is an order against a person or a firm who is engaging in or about to engage in an activity that the administrator deems unacceptable

Answer 10

Cease and desist

Question 11

Anyone who displays contempt for the administrators order is guilty of?

Answer 11

Contumacy

And maybe found in contempt of court if the administrator asked the court to enforce his orders

Question 12

An administrator May investigate a broker dealer, a state investment advisor, or an agent in any state if the administrator believes that a violation has taken or may take place

While the administrator May investigate and take action in all of the above situations, the administrator does not have jurisdiction over activities that take place exclusively outside of the administrator state

Answer 12

Take note

Question 13

True or false. The state administrator has the power to arrest anyone within their state for violation of Securities laws

Answer 13

False. The administrator has no power to arrest anyone and must refer the case to the attorney general or other office and power to make arrests

Question 14

Anyone who has found to have knowingly and willingly criminally violated the laws of the USA is subject to a $5,000 fine and or 3 years in prison

Answer 14

Take note

Question 15

People who criminally violate the investment advisors Act of 1940 are subject to a $10,000 fine and / or 5 years in prison

Answer 15

Take note

Question 16

Civil actions may be taken against

Answer 16

An agent, a firm, the agent supervisor

Question 17

Sets forth model legislation for State Securities laws

Answer 17

The USA

Question 18

The only time that a state Securities administrator has any authority to investigate a federally registered investment advisor is ?

Answer 18

if the advisors principal office is located within the administrator state

Question 19

Is where the executive and C-level directors maintain offices

Answer 19

The principal office

Question 20

What constitutes a transaction or sale of a security?

Answer 20

The offer and acceptance of a security

Question 21

Is the acknowledgment and offer to repurchase a security sold for its original value while also agreeing to pay interest for the time period that the money was invested

This often occurs when a seller of a security determines that the sale has violated a provision of the USA

Answer 21

Rescission

Note that if the buyer does not accept the offer of rescission within 30 days, the seller has no further liability with regard to the sale of those securities and the buyer forfeits the right to sue

Question 22

Take note. An investor is acknowledgment that a sale is in violation of the USA is never valid

Answer 22

A customer with an investment objective of speculation convinces they’re representative to sell them an interest in a private placement that will pay the representative a commission and is in violation of the USA. The investor is a non-accredited investor and signs a letter stating that they recognize that the investment is in violation of the USA and will not Sue or otherwise hold the representative or their firm responsible for any losses. this acknowledgment by the client is neither valid nor enforceable and in no way protects the representative or the firm

Question 23

If a buyer of a security finds that the sale of the security violates any of the provisions of the USA, the purchaser has two years from the discovery of the violation or 3 years from the purchase date, whichever comes first, to take action

Answer 23

Important note