Unit 3 (4) Flashcards
A BD registered in multiple states must meet the record retention requirements of
The SEC. A registered in multiple states is going to be registered with the SEC as well. SEC requirements preempt state requirements. If the question was an IA registered at the state level, then it would be the requirements of the state where the IA has its principal office.
If you’re a broker dealer with no office in the state and your clients are trusts, other BDs, and retail clients, are you excluded from registration?
No. If you are dealing with retail clients, even if you have no office in the state, you have to register. If your clients were only trust cos and other BDs, you are excluded
Is a trust company with an office in the state dealing with the general public excluded from registration?
Yes. Trust companies are excluded from the definition of broker dealer and don’t have to register
A broker dealer is
A person who’s primary function is effecting securities transactions for his own account and the accounts of others
An agent may NOT act as an agent for another BD unless
Unless the BD is affiliated OR the administrator by rule or order authorizes
Agent terminates his association with BD A and begins to work for BD B. Under the terms of the USA, who tells the administrator?
For BDs, both the BD and the Agent tell the administrator. There is nothing about a supervisor of the agent telling the administrator it is just “the BD”
What would a Canadian BD who is registered in Provence Q do in order to conduct business with his clients who vacation in several New England states?
Agent must be properly registered in Provence Q, deal only with existing clients, and register in each of the New England states where their clients are
If a question asks about a client who has “enrolled in a 1 year resident MBA program” or something similar, in a state where the agent is not registered - can you still do business with the client?
Yes, because the client hasn’t changed permanent residence
If a bd has a place of business it always has to register. True or false?
No matter who the clientele are, a BD with a place of business in the state has to register
