Which of the following may be required by the administrator to post surety bonds?
53 54 (e) The [Administrator] may by rule require registered broker dealers, agents, and investment advisers to post surety bonds in amounts up to $10,000, and may determine their conditions. Any appropriate deposit of cash or securities shall be accepted in lieu of any bond so required.
The broker-dealer and agent are both responsible for notifying the state administrator when an agent's employment is terminated.
Which of the following needs to be filed with the Administrator? The Administrator may require the filing of any pamphlet, form letter, circular, prospectus, advertisem*nt, or other sales literature or communication that will be distributed to potential investors.
Expert-Verified Answer. The correct response is b. A for-profit company issuing securities that are not exchange listed. the administrator can require the filing of sales literature related to a for-profit company issuing securities that are not exchange listed.
The state securities administrator has the authority to enforce all of the provisions of the Uniform Securities Act (USA) within the administrator's state. The state securities administrator may deny, revoke, or suspend the registration of a security, an agent, or a firm.
A state securities administrator may investigate a broker dealer, an investment adviser, or an agent in any state if they feel that a violation has taken or may take place. The administrator may also subpoena people, books, and records in any state and may administer oaths to compel people to testify.
IARs of both state and federal registered investment advisers must be registered with the appropriate state Administrator(s), unless otherwise exempted. In the case of agents, both the broker-dealers and the agents must notify the Administrator.
(a) Definitions
(3) "Institutional communication" means any written (including electronic) communication that is distributed or made available only to institutional investors, but does not include a member's internal communications. (F) person acting solely on behalf of any such institutional investor.
FINRA Rule 2210 (Communications with the Public) defines all communications into three categories—correspondence, retail communications or institutional communications—and sets principles-based content standards that are designed to apply to ongoing developments in communications technology and practices.
Under the Marketing Rule, the disclosure required for compensated endorsem*nts must be provided by the adviser, or alternatively the promoter, provided that the adviser “reasonably believes” that the promoter is making the disclosure at the time the endorsem*nt is disseminated.
Which of the following persons is required to register with the SEC as a federal covered adviser?
A federal covered advisor is an investment advisor that is registered with the SEC under the Investment Advisers Act of 1940. An investment advisor must register with the SEC if they have more than $110 million in assets under management.
If you have held or accepted custody of funds and/or securities for or owe money or securities to customers or clients during the period covered, you must file audited financial statements prepared by an independent certified public accountant or independent public accountant.
Information concerning the company which should be disclosed includes: the address of the principal office of the company and any significant subsidiaries; the general nature of the company's business; its form of organization; when it started operations; where it was organized; the location of its principal plants or ...
An exempt transaction is a type of securities transaction where a business does not need to file registrations with any regulatory bodies, provided the number of securities involved is relatively minor compared to the scope of the issuer's operations and that no new securities are being issued.
Final answer: The Uniform Securities Act provides the administrator with powers such as subpoenaing records located outside the state, subpoenaing witnesses located outside the state and compelling their testimony, and referring violations to the attorney general to initiate criminal prosecutions.
(1) “Agent” means any individual, other than a broker-dealer, who represents a broker-dealer or issuer in effecting or attempting to effect purchases or sales of securities.
Each states' laws may vary by specifics, but all require the registration of securities being sold, offered, or accepted in the state. The state security administrator has authority over the behaviors and actions of stockbrokers, and brokerage firms within their state.
Exchange Act Rule 17a-4(b)(4) requires that a broker-dealer retain originals of all communications received and copies of all communications sent by the broker-dealer relating to its "business as such" for at least three years, the first two years in an easily accessible place.
A disclosure obligation would require broker-dealers to disclose material facts about the relationship and recommendations of the products and services they provide.
Rationale: Under the Uniform Securities Act, when an agent associates with a broker-dealer; or terminates those activities that make him or her an agent; both the agent and the broker-dealer must notify the State Administrator promptly.
Whose instructions is the agent required to follow?
An agent is obligated to obey promptly and efficiently all lawful instructions of his principal. However, this duty plainly does not include an obligation to obey any unlawful instructions; for example, an instruction not to market the property to minorities or to misrepresent the condition of the property.
Final answer: The jurisdiction of the State Administrator involves actions occurring in his/her state. Therefore, actions I (mailing to a customer within the state) and III (TV broadcast within that state, received in that state) fall under the jurisdiction. The correct answer is C.
Regulatory Obligations
New member firms are required to file all widely disseminated retail communications with FINRA's Advertising Regulation Department during their first year of membership, and all member firms are subject to filing requirements for specified retail communications depending on their content.
A Form U4 filed on behalf of an individual that has been FINRA-registered with another broker-dealer within 30 calendar days should complete all applicable sections with the exception of Section 9 (Identifying Information/Name Change), Section 10 (Other Names), Section 11 (Residential History), Section 12 (Employment ...
FINRA members must file documents and other information on a timely basis in connection with public offerings. These documents include registration statements or offering circulars, amendments and distribution-related documents.
