Unit 3 Flashcards
An order ticket must show…….
the terms and conditions of the order, instructions, modification, or cancellation, the person connected with the IA who recommended the transaction, and the person who placed the order
If information in an adviser’s brochure becomes materially inaccurate, the adviser must file an updating amendment ________
promptly
When an agent ends his employment with a broker-dealer, who must notify the Administrator about the agent’s employment and registration status?
Both the agent and the broker-dealer
Under the Uniform Securities Act, all registrations expire when?
annually on December 31
True or False:
The Administrator may allow a deposit of cash or securities be accepted in lieu of the surety bond.
True
___________ are individuals who attempt to find buyers for privately held firms that are selling securities in a private placement.
Finders
When is a mutual fund’s prospectus required to be delivered?
When a client is solicited to buy mutual fund shares
True or False:
Emails may need to include additional disclosures that are not included in written communications.
True
A surety bond is insurance issued by a bonding company that agrees to pay the sum of money awarded by a court up to a certain amount. The bond must be maintained for as long as the registrant is in business and for ____ years thereafter.
3
Can agents split commissions if they work for different broker dealers that are under the same control?
Yes.
A person’s registration becomes effective at noon on the ___th day after the filing of the application
30th
When is a broker-dealer required to deliver a prospectus?
by settlement date
Broker-Dealer books and records must be kept for a total of __ years, but for the first __ years they need to be in an easily accessible location.
3 years; 2 years
Investment Advisors must keep books and records for __ years.
5 years
