Uniform Securities Act Quiz

Question 1

What is the statute of limitations for foreign based security violations as a cause of denial for registration?

Answer 1

5 years

Question 2

What is the statute of limitations for US based security violations as a cause of denial for registration?

Answer 2

10 years

Question 3

Is a lawyer or accountant who gives investment recommendations considered an investment adviser?

Answer 3

No

Question 4

Can the administrator publish the findings of an investigation publicly?

Answer 4

Yes

Question 5

Is a supervisor of IARs also required to be an IAR?

Answer 5

Yes

Question 6

Are trusts where the beneficiaries are not evidenced by a security considered a person?

Answer 6

No

Question 7

Are unincorporated organizations considered persons?

Answer 7

Yes

Question 8

If an agent withdraws their registration when does the withdrawal become effective?

Answer 8

30 days

Question 9

Can investment advisers or agents file an application to register securities?

Answer 9

No

Question 10

Are unsolicited customer orders exempt or non-exempt transactions?

Answer 10

exempt

Question 11

Is there a minimum net capital standard for agents?

Answer 11

No

Question 12

Can the Administrator require the posting of a surety bond by an agent?

Answer 12

Yes

Question 13

Can an agent who receives inside information discuss it with their branch manager?

Answer 13

Yes

Question 14

When can a mutual fund be called “no-load”?

Answer 14

If it charges 12b-1 fees of .25% or less

Question 15

Who must notify the state if a representative from a federal covered adviser quits?

Answer 15

The adviser

Question 16

What is the statute of limitations for filing a criminal claim under the Uniform Securities Act?

Answer 16

5 years

Question 17

Can the administrator impound proceeds from sale until the issuer receives a specific amount?

Answer 17

Yes

Question 18

Can the administrator require filing of original copies of subscription agreements?

Answer 18

Yes

Question 19

Is a representative who fails to register going to face civil or criminal penalties?

Answer 19

Civil

Question 20

If an advisory firm is bought out by another, are the customers required to give approval before their accounts are moved?

Answer 20

Yes

Question 21

When do registrations expire?

Answer 21

Dec 31st

Question 22

What is the maximum number of clients an investment adviser can have to qualify for a de minimus exemption?

Answer 22

5

Question 23

When must amendments to filings with the Administrator be made?

Answer 23

Promptly

Question 24

What act covers Federally Covered investment advisors?

Answer 24

investment advisors act of 1940

Question 25

Does the administrator need to give notice prior to inspecting records/

Answer 25

No

Question 26

Do deposits and withdrawals of cash over 10k have to be reported?

Answer 26

Yes

Question 27

Do representatives have to keep records of personal email?

Answer 27

Yes

Question 28

If a representative of an investment advisor is terminated, who notifys the state?

Answer 28

Advisor

Question 29

If an agent of a broker dealer is terminated who notifys?

Answer 29

agent and b/d

Question 30

Can member firms currently involved in an underwriting issue research reports on the company?

Answer 30

ONly after 40 days for IPOs and 10 days for add ons

Question 31

What is the window that renewals must be filed?

Answer 31

within 30 days of the renewal being sent out

Question 32

How long must investment advisors keep their articles of incorporation?

Answer 32

Life of firm + 3 years

Question 33

If a broker dealer charges management fees, must it register as an investment advisor?

Answer 33

Yes

Question 34

Do b/d keep subscription order records?

Answer 34

No

Question 35

Can a surety bond requirement be waived if the b/d maintains more net capital than the bond amount?

Answer 35

Yes

Question 36

If the investment advisor does not take custody, is there a surety bond requirement?

Answer 36

No

Question 37

For registration by qualification, is the burden of proof on the applicant or state?

Answer 37

applicant

Question 38

For registration by filing and coordination is the burden of proof on the applicant or state?

Answer 38

State

Question 39

Are investment advisor solicitors required to register with the SEC?

Answer 39

No

Question 40

If an agent changes which b/d he's registered with, when must he notify the state?

Answer 40

immediately

Question 41

When a b/d registers with the state, do its officers gain automatic registration as agents/

Answer 41

yes

Question 42

When does an agents registration become effective?

Answer 42

30 days after filign