The definition of an investment adviser includes which of the following?
A
Publisher of bona-fide financial magazines
B
Publisher of financial advice with specific recommendations for each client
C
Business and financial publication with specific stock forecasts
D
Publisher of bona-fide newspapers of general and paid circulation - ANSWER B
Publisher of financial advice with specific recommendations for each client
Publishers of financial advice are considered investment advisers if the advice is applied to
specific client investment situations. The term investment adviser does not include
publishers or columnists of any generally circulated magazine, newspaper, or other business
or financial publication that does not give advice on the basis of the specific investment
situation of each client.
An investment adviser representative (IAR) who is associated with a federal covered IA, has
their registration in the state of Idaho terminated. Regarding the IAR's registration
termination:
A
No notification to a state Administrator is required if the IA is federal covered
B
It is the IAR who is responsible for notifying the Idaho State Administrator
1
,C
Both the IA and IAR are responsible for notifying the Idaho State Administrator
D
It is the IA who is responsible for notifying the Idaho State Administrator - ANSWER B
It is the IAR who is responsible for notifying the Idaho State Administrator
If employed by a federal covered investment adviser, the IAR must notify the Administrator
when a registration is being terminated.
Which of the following statements is incorrect regarding the filing fee for registering
securities?
A
It is usually a percentage of the total offering price of the security
B
It accompanies the registration statement
C
Failure to pay the fee will not delay the offering
D
It varies from state to state - ANSWER C
Failure to pay the fee will not delay the offering
Failure to pay the filing fee will result in the offering being denied until the fee is paid. Once
the fee has been paid, the State Administrator can no longer deny registration.
The maximum period during which the Administrator may bring criminal charges against an
agent for fraudulent securities activity is:
A
3 years
B
2
,1 year
C
5 years
D
2 years - ANSWER C
5 years
The statute of limitations for criminal actions under the USA is 5 years from the date of the
violation.
A retail customer of a broker-dealer who temporarily moved to Florida for the winter
months has decided to relocate there permanently and notifies their registered
representative at the broker-dealer. Regarding the continuance of doing business with the
customer, which of the following is true?
A
If not already registered in Florida, the BD will be exempt from registration if only wanting to
continue doing business with the existing customer
B
If not already registered in Florida, to continue doing business with the customer, the BD will
now be considered a BD in the state of Florida and need to register there
C
If not already registered in Florida, to continue doing business with the customer, the BD will
only be required to open an office in Florida which will exempt it from registration there
D
If not already registered in Florida, the BD will not be considered a BD in the state of Florida
and will be excluded fr - ANSWER B
If not already registered in Florida, to continue doing business with the customer, the BD will
now be considered a BD in the state of Florida and need to register there
3
, Given the retail customer's new residency in the state of Florida, to continue to do business
with the customer the BD will be considered a BD in that state and be required to register
there.
Under what circumstances may a client and broker-dealer commingle funds?
A
Only if the broker-dealer has discretionary authority
B
With a written client agreement and a surety bond
C
Only if the account is insured and the broker-dealer has obtained Administrator approval
D
Under no circumstances - ANSWER D
Under no circumstances
The broker-dealer may never commingle firm funds or securities with customer funds or
securities.
Which of the following would not be considered an agent under the Uniform Securities Act?
A
A registered principal of a broker-dealer
B
An RR who executes trades with institutional investors only
C
An employee in the HR department of a corporation who administers the company's
retirement plan
D
An employee of a broker-dealer who executes exempt transactions only - ANSWER C
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A
Publisher of bona-fide financial magazines
B
Publisher of financial advice with specific recommendations for each client
C
Business and financial publication with specific stock forecasts
D
Publisher of bona-fide newspapers of general and paid circulation - ANSWER B
Publisher of financial advice with specific recommendations for each client
Publishers of financial advice are considered investment advisers if the advice is applied to
specific client investment situations. The term investment adviser does not include
publishers or columnists of any generally circulated magazine, newspaper, or other business
or financial publication that does not give advice on the basis of the specific investment
situation of each client.
An investment adviser representative (IAR) who is associated with a federal covered IA, has
their registration in the state of Idaho terminated. Regarding the IAR's registration
termination:
A
No notification to a state Administrator is required if the IA is federal covered
B
It is the IAR who is responsible for notifying the Idaho State Administrator
1
,C
Both the IA and IAR are responsible for notifying the Idaho State Administrator
D
It is the IA who is responsible for notifying the Idaho State Administrator - ANSWER B
It is the IAR who is responsible for notifying the Idaho State Administrator
If employed by a federal covered investment adviser, the IAR must notify the Administrator
when a registration is being terminated.
Which of the following statements is incorrect regarding the filing fee for registering
securities?
A
It is usually a percentage of the total offering price of the security
B
It accompanies the registration statement
C
Failure to pay the fee will not delay the offering
D
It varies from state to state - ANSWER C
Failure to pay the fee will not delay the offering
Failure to pay the filing fee will result in the offering being denied until the fee is paid. Once
the fee has been paid, the State Administrator can no longer deny registration.
The maximum period during which the Administrator may bring criminal charges against an
agent for fraudulent securities activity is:
A
3 years
B
2
,1 year
C
5 years
D
2 years - ANSWER C
5 years
The statute of limitations for criminal actions under the USA is 5 years from the date of the
violation.
A retail customer of a broker-dealer who temporarily moved to Florida for the winter
months has decided to relocate there permanently and notifies their registered
representative at the broker-dealer. Regarding the continuance of doing business with the
customer, which of the following is true?
A
If not already registered in Florida, the BD will be exempt from registration if only wanting to
continue doing business with the existing customer
B
If not already registered in Florida, to continue doing business with the customer, the BD will
now be considered a BD in the state of Florida and need to register there
C
If not already registered in Florida, to continue doing business with the customer, the BD will
only be required to open an office in Florida which will exempt it from registration there
D
If not already registered in Florida, the BD will not be considered a BD in the state of Florida
and will be excluded fr - ANSWER B
If not already registered in Florida, to continue doing business with the customer, the BD will
now be considered a BD in the state of Florida and need to register there
3
, Given the retail customer's new residency in the state of Florida, to continue to do business
with the customer the BD will be considered a BD in that state and be required to register
there.
Under what circumstances may a client and broker-dealer commingle funds?
A
Only if the broker-dealer has discretionary authority
B
With a written client agreement and a surety bond
C
Only if the account is insured and the broker-dealer has obtained Administrator approval
D
Under no circumstances - ANSWER D
Under no circumstances
The broker-dealer may never commingle firm funds or securities with customer funds or
securities.
Which of the following would not be considered an agent under the Uniform Securities Act?
A
A registered principal of a broker-dealer
B
An RR who executes trades with institutional investors only
C
An employee in the HR department of a corporation who administers the company's
retirement plan
D
An employee of a broker-dealer who executes exempt transactions only - ANSWER C
4
