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Under the Uniform Securities Act, which individual is considered to be an agent? A secretary who accepts customers' securities orders A principal of a broker-dealer A person who solely performs clerical functions A silent partner of a broker-dealer correct answers A secretary who accepts cust...

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  • September 5, 2024
  • 44
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers

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  • under the uniform securities act which individual

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  • Series 65
  • Series 65

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Series 65 || Questions and 100% Verified Answers.
Under the Uniform Securities Act, which individual is considered to be an agent?

A secretary who accepts customers' securities orders
A principal of a broker-dealer
A person who solely performs clerical functions
A silent partner of a broker-dealer correct answers A secretary who accepts customers' securities
orders

Registration by coordination is used in conjunction with which of the following Acts?

The Securities Act of 1933
The Securities Exchange Act of 1934
The Investment Company Act of 1940
The Investment Advisers Act of 1940 correct answers The Securities Act of 1933

An agent is soliciting investors for a private placement. Under the Uniform Securities Act, this is
an exempt transaction as long as the agent doesn't offer the securities to more than:

Five retail investors during a 12-month period
10 retail investors during a 12-month period
10 non-accredited investors during a 12-month period
35 non-accredited investors during a 12-month period correct answers 10 retail investors during
a 12-month period

Sales of viatical investments can be made only to suitable investors. Which TWO of the
following investors are considered suitable?

I) An accredited investor under Regulation D
II) Anyone with a minimum net worth of $150,000 and gross income last year of at least
$100,000, or a minimum net worth of $250,000
III) Anyone who is in the highest marginal tax bracket and is in need of liquidity
IV) Anyone who has been specifically approved by the state Administrator correct answers I and
II

Which of the following choices would NOT meet the definition of an exempt transaction?

A transaction by a trustee involved in a bankruptcy
An unsolicited nonissuer transaction with a retail investor
Transactions between an issuer and retail investors
A transaction executed by a bona fide pledgee correct answers Transactions between an issuer
and retail investors

,An investment adviser (IA) is dually registered as a broker-dealer in State A. The IA is also
registered in State B, but it's not registered as a broker-dealer there. If the investment adviser
only has advisory clients in State B, is it required to register as a broker-dealer in State B?

Yes, if the firm has a place of business in State B.
No, since the firm does not have any brokerage clients in State B.
No, because the firm is already registered as an IA in State B.
Yes, since broker-dealers must register in every state. correct answers No, since the firm does not
have any brokerage clients in State B.

A firm will charge a commission for the service of:

Buying and selling securities when acting as principal and assuming risk
Buying and selling securities on a client's behalf
Dispensing advice to its high net worth clients
Acting in the role of the specialist correct answers Buying and selling securities on a client's
behalf

Which of the following persons would be required to register as an investment adviser under the
Uniform Securities Act?

A federal covered adviser
An accountant who provides investment advice that is incidental to her tax practice
A bank's trust department that provides fee-based investment advice
The publisher of a financial periodical that responds to each subscriber with personalized
investment advice correct answers The publisher of a financial periodical that responds to each
subscriber with personalized investment advice

An investment adviser is registered and located State A. One of the IAR's has three non-
institutional clients and one institutional client in State B. A different IAR has four non-
institutional clients in State B. If the investment adviser does NOT have an office in State B, who
must register in that state?

Only the IARs
The IARs and the investment adviser
Only the investment adviser
Neither the IARs nor the investment adviser correct answers Only the investment adviser

If an adviser inadvertently receives client funds and/or securities, it can avoid the implication
that it is maintaining custody of the assets by returning them to the sender within:

Three business days of receiving them
Three calendar days of receiving them
Seven business days of receiving them
Seven calendar days of receiving them correct answers Three business days of receiving them

,An adviser would meet the business standard portion of the three-pronged test pursuant to SEC
Release 1092 if:

Advice was given on a regular periodic basis
The adviser devoted at least 25% of its time to providing advice
The advisory firm had at least three offices in a particular state
The adviser received compensation based on the appreciation of the account correct answers
Advice was given on a regular periodic basis

An investment advisory firm and an accounting firm have offices in the same building, but are
otherwise unaffiliated. One of the investment adviser representatives pays a cash referral fee to a
CPA in the other office for any clients she sends over to the adviser. All the following statements
are TRUE, EXCEPT:

The CPA must give the investment adviser's brochure to the clients that she refers to the adviser.
The CPA must give a separate disclosure document to any clients that she refers to the adviser.
The adviser must give each client that is acquired through the CPA another copy of the separate
solicitor disclosure document at the time the client agrees to enter into an advisory relationship.
The adviser must make a bona fide effort to ensure that the CPA is giving the clients whom she
refers copies of the adviser's brochure and the separate solicitor disclosure statement. correct
answers The adviser must give each client that is acquired through the CPA another copy of the
separate solicitor disclosure document at the time the client agrees to enter into an advisory
relationship.

According to the ABC test, an individual must earn compensation for providing advice in order
to be considered an investment adviser. Which of the following statements is NOT TRUE
regarding the meaning of compensation?

Fees are considered compensation
Nominal commissions are considered compensation
Fees must be received directly from the client who makes use of the advice
The fee for advice may be either listed separately or included as part of a larger bundled charge
correct answers Fees must be received directly from the client who makes use of the advice

An investment adviser (IA) only has one client. The IA is NOT provided an exemption from the
registration requirements of the Investment Advisers Act of 1940 based on which of the
following clients?

A Section 3(c)(1) private fund that has $110 million of assets under management
An insurance company
A venture capital fund
A Section 3(c)(7) private fund that has $200 million of assets under management correct answers
A Section 3(c)(7) private fund that has $200 million of assets under management

An IA may charge a client an investment advisory fee for rendering investment advice while
receiving compensation for effecting securities transactions related to such advice:

, Under no circumstances
But may only retain the greater amount of the two
Only if disclosed to the client
Only if the IA is also an agent of a broker-dealer correct answers Only if disclosed to the client

According to the Investment Advisers Act of 1940, when must an access person submit a
transaction report?

No later than 10 days after the end of the calendar quarter in which the transaction was effected
Promptly
No later than 30 days after the end of each calendar quarter
Within 90 days of the end of the adviser's fiscal year correct answers No later than 30 days after
the end of each calendar quarter

Investment advisers (IAs) may accept discretionary orders:

For up to 10 days before receiving signed power of attorney
Only after they have received signed power of attorney
Only if they're affiliated with a broker-dealer
Only if assets are being held at the investment adviser correct answers For up to 10 days before
receiving signed power of attorney

An individual opened a brokerage account and placed trades on his own. The transactions
subsequently generated a 20% return for the individual, but also very large commissions. Is the
broker-dealer in violation of industry rules?

Yes, due to the very large commissions.
Yes, this is a violation of the broker-dealer's fiduciary responsibility.
Not if the customer has signed a wavier consenting to the larger commissions.
No, because the broker-dealer is not soliciting the transactions. correct answers No, because the
broker-dealer is not soliciting the transactions.

According to the Investment Advisers Act of 1940, access persons must submit their personal
security holdings reports by:

No later than 10 days after becoming an access person; then at least every 12 months thereafter
No later than 30 days after becoming as access person; then at least monthly thereafter
No later than 45 days after becoming an access person; then at least monthly thereafter
Promptly upon becoming an access person; then at least monthly thereafter correct answers No
later than 10 days after becoming an access person; then at least every 12 months thereafter

The Administrator in State A is investigating potentially fraudulent activities by a broker-dealer
that's registered in every state. The Administrator in State A wants to inspect records of the
broker-dealer in State B. Which of the following statements regarding the inspection by the
Administrator of State A is TRUE?

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