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| Section | Weight | Objectives |
|---|---|---|
| State Securities Acts and Related Rules & Regulations | 40% | - Definitions and jurisdiction - Registration of securities and exemptions - Regulation of broker-dealers and agents - Regulation of investment advisers and representatives |
| Regulations of Investment Advisers and Representatives | 15% | - Advertising and recordkeeping rules - Fiduciary duties and disclosure requirements - Registration and exclusions |
| Regulations of Agents and Broker-Dealers | 25% | - Supervision and compliance responsibilities - Recordkeeping and reporting obligations - Registration requirements and exemptions |
| Prohibited Practices and Ethical Obligations | 20% | - Administrative remedies and enforcement - Fraudulent and unethical business conduct - Disclosure and fair dealing |
Which of the following is not a prohibited practice for a broker-dealer?
Correct Answer: C 🗳️
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on No: 9
Rich Writewell wants to begin publishing an independent weekly financial newsletter that will provide investment recommendations as well as other financial news items to the general public. Rich hopes that his newsletter will achieve nationwide circulation within a few months.
Which of the following statements is true?
Correct Answer: A 🗳️
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The Uniform Securities Act (USA) is
Correct Answer: C 🗳️
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Which of the following are accurate statements regarding the minimum financial requirements for investment advisers according to the NASAA Model Rules?
I. Any investment adviser who has discretionary authority over a client's assets, but who does not have actual custody of client funds or securities, is required to maintain a minimum net worth of $10,000 at all times.
II. An investment adviser who requires that a fee of more than $500 from his clients be paid six months or more in advance must maintain a positive net worth at all times.
III. Only an investment adviser who has actual custody of client assets is subject to a minimum net worth requirement, which the NASAA Model Rules specifies is $10,000.
Correct Answer: D 🗳️
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No: 192
The maximum monetary civil liability that a person who has violated a securities law can be expected to pay is
Correct Answer: C 🗳️
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