Uniform Securities Act and State Regulations Flashcards
6 cards from real Series 65 – Uniform Investment Adviser Law Exam practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Uniform Securities Act and State Regulations flashcards as text
Under the Uniform Securities Act, who is defined as an 'investment adviser representative' (IAR)?
Answer: A person who is supervised by an investment adviser and makes investment recommendations or manages client accounts
An IAR is an individual associated with a registered investment adviser who provides investment advice, manages client portfolios, or solicits advisory clients.
What is the typical notice filing requirement for a federally covered investment adviser in a state?
Answer: Filing a copy of Form ADV and paying a state fee, but not full state registration
Federally covered advisers (SEC-registered) must file a notice with each state where they have a place of business, typically submitting Form ADV and paying a fee, rather than registering as a state adviser.
Under the Uniform Securities Act, which of the following is NOT exempt from the definition of a broker-dealer?
Answer: A firm that regularly buys and sells securities for its own account with the public
A firm that regularly buys and sells securities with the public for its own account as a dealer is not exempt from broker-dealer registration requirements.
What authority does a state securities administrator have under the Uniform Securities Act?
Answer: The authority to register securities, advisers, and broker-dealers, investigate violations, issue cease-and-desist orders, and seek civil and criminal penalties
State administrators have broad authority including registration oversight, investigation of fraud and violations, administrative penalties, and referral of cases for civil or criminal action.
Which of the following securities is exempt from registration under the Uniform Securities Act?
Answer: U.S. government securities
U.S. government securities are exempt from registration under the Uniform Securities Act because they are issued by the federal government and subject to federal oversight.
Under the Uniform Securities Act, what is the maximum criminal penalty for willful violations?
Answer: $5,000 fine and/or 3 years imprisonment
The Uniform Securities Act provides for criminal penalties of up to $5,000 in fines and/or up to 3 years in prison for willful violations of the Act.