What provisions of the USA can the Administrator not change? correct answers Laws relating to defined exempt securities
(always have jurisdiction if Fraud is involved)
Does the Administrator have jurisdiction over a transaction effected or accepted in a state? correct answers Yes
Does the ...
what provisions of the usa can the administrator n
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What provisions of the USA can the Administrator not change? correct answers Laws relating to
defined exempt securities
(always have jurisdiction if Fraud is involved)
Does the Administrator have jurisdiction over a transaction effected or accepted in a state?
correct answers Yes
Does the Administrator have jurisdiction when an offer was directed from the state, or directed
into the state? correct answers Yes
Does the Administrator have jurisdiction when a check for a transaction was mailed from the
state? correct answers No
Offer is made in a bona fide newspaper with regular, paid circulation...
Is the offer considered made in a state if it is not published in that state? correct answers The
offer is NOT considered made in the state if it is not published in the state
Offer is made in a bona fide newspaper with regular, paid circulation...
-Published in State A
-2/3 of circulation is outside State A in the past 12 months.
Is the offer made in State A? correct answers The offer is NOT made in State A
Is an offer is made through TV or Radio, is it considered made in State A if the communication
originates outside of State A? correct answers The offer is NOT considered to be made in State
A
Front-Running correct answers Executing personal or firm trades prior to client's trade
Shadowing correct answers Copying the trades in a client's account
According to the Securities Exchange Act of 1934 and the Investment Advisers Act of 1940,
Broker/Dealers and Investment Advisers must make and maintain all records of what, pertaining
to each client? correct answers -Accounts
-Correspondence
-Books
-Records
-Any communication by written or electronic media
For Broker/Dealers, what storage for recordkeeping is acceptable? correct answers ANY form of
data storage acceptable under the Securities Exchange Act of 1934,
,-IF-
they are readily accessible to Administrator
For State-covered Investment Advisers, what storage for recordkeeping is acceptable? correct
answers ANY form of data storage required by rules or orders issued under the Uniform
Securities Act
For Federal-covered Investment Advisers, what storage for recordkeeping is acceptable? correct
answers ANY form of data storage acceptable to the SEC
What is required for data storage (recordkeeping) in forms of electronic media? correct answers -
Maintain, preserve, and have a form of backup media
-Data security measures (limit access)
-Reasonably ensure that reproduction is complete, true, and legible
-Ability to readily print electronic records
According to recordkeeping requirements of NASAA Model Rules, what must Investment
Advisers do? correct answers •Must maintain and preserve records for the required time
•Must immediately produce or reproduce records in any of the following forms...
-Paper or hard copy
-Micro-graphic media
-Electronic storage media
After registration, the state Administrator may require Broker/Dealers and Investment Advisers
to maintain the following records: correct answers •Customer Accounts
•Correspondence
•Trade Memorandum
•Partnership papers
•Financial Books
•Other
Margin accounts are governed by... correct answers Regulation T, set up by the Federal Reserve
Board (currently require 50% of purchase price)
The disqualification of an Investment Adviser Representative or Agent may not be used against
the employing firm unless... correct answers It was a result of a lack of supervision
When can the Administrator cancel the registration of a registered person? correct answers If the
registered person is...
,-Deceased
-Found to be mentally incompetent
-Cannot be located after a reasonable search
***Note: Cancellation does not require a hearing (individual has stopped doing business in the
state)
For what account must the investor pay in full by the settlement date? correct answers Cash
Account
FINRA requires what signature on a new Cash Account? correct answers Principal's signature
(Most B/D require customer signature as well)
What 3 signatures does FINRA require on a new Discretionary Account correct answers 1)
Customer
2) RR
3) Principal
How long must records be kept on file for Broker/Dealers? correct answers 3 years:
•Most recent 2 years must be readily accessible
•3rd year may be in long-term storage
How long must records be kept on file for Investment Advisers? correct answers 5 years
Form ADV-W correct answers If an Investment Adviser ceases to conduct business as an
investment adviser, the Investment Adviser must withdraw its registration by filing a Form
ADV-W
***Withdrawals are not permitted if legal proceedings are present
When does a withdrawal of an Investment Adviser (after filing form ADV-W) become effective?
correct answers 30 days after the filing date, for investment advisers, investment adviser
representatives, broker/dealers, and agents
What period of time can legal proceedings be initiated after the termination date of registration?
correct answers 1 year
This means a person is not truly terminated until one year has passed without legal action,
because the person is still considered under the jurisdiction of the Administrator
, How long do Agents and IARs have to re-register under another registered Broker/Dealer before
having to retake registration examinations? correct answers 2 years
Who must notify the Administrator when an AGENT terminates employment with a
Broker/Dealer or Issuer? correct answers Both
1) Broker/Dealer or Issuer
2) Agent
Who must notify the Administrator when an AGENT changes employment with a Broker/Dealer
or Issuer? correct answers All 3 Parties
1) Old Broker/Dealer or Issuer
2) Agent
3) New Broker/Dealer or Issuer
Who must notify the Administrator when an Investment Adviser Representative terminates
employment with a State-covered Investment Adviser? correct answers ONLY the Investment
Adviser
Who must notify the Administrator when an Investment Adviser Representative terminates
employment with a Federal-covered Investment Adviser? correct answers ONLY the terminated
Investment Adviser Representative
If an Agent or IAR ends employment at one firm and begins employment with another, within
how many days must the registration application be filed for it to be immediately effective?
correct answers 30 days
The registration will be immediately effective if the Agent's CRD record has no new or amended
disciplinary disclosures within the preceding 12-month period. If CRD shows new or amended
disclosures, registration will be temporarily effective
Central Registration Depository (CRD) correct answers National database used by FINRA and
NASAA to store information on B/D and their agents, and Investment Advisers and their IARs
When may an Administrator...
Issue a cease and desist order;
and/or
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