Module 5

Question 1

How many days does the firm/individual have the right to appeal the court when the administrator issues a Cease and Desist order?

Answer 1

60 days

Question 2

What is the maximum penalty of a fraudulent act, according to the Uniform Securities Act?

Answer 2

3 years in prison

$5000 in fines

Question 3

What is the statue of limitation, according to the Uniform Securities Act?

Answer 3

5 years

Question 4

What is the maximum criminal penalties at the federal level?

Answer 4

5 years in prison

$10,000 in fines

Question 5

Under the Uniform Securities Act, what is the statue of limitation for civil liabilities?

Answer 5

3 years from the event and 2 years from the discovery of the wrongdoing, whichever comes first

Question 6

If an investigation lead to the state administration taking disciplinary actions against a firm or an individual, what must the administrator provide?

Answer 6

1. Notify the firm/individual of the action taken against them.
2. Notify the firm/individual of their right to a hearing.
3. If a hearing is requested, grant the hearing within 15 days of receiving the written request.

Question 7

An Investment Adviser can ONLY borrow/lend money or securities to a client if…

Answer 7

1. The client is a Broker/Dealer
2. The client is a financial institution that is in the business of loaning money itself.
3. An affiliate of the investment adviser.