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52 Cards in this Set
- Front
- Back
If the Administrator wishes to enter an order suspending or revoking a registration, this action must be in the _________interest
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public
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If a person was found to have violated the securities or commodities laws or any felony within the past ____ years, then registration will be denied
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10
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_________________ is not a reason for denying registration to an investment adviser representative under the Uniform Securities Act.
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Lack of experience alone
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Advisor with primary office in State X, with clients in Y and Z, commits violation/ get a compliant in State Z. Which Administrator(s) have authority to take action against the adviser if the complaint is determined to be valid?
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ALL - X Y Z
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Federal covered adviser limits Administrator(s) from ONLY doing what to them?
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require the adviser to register in the State
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This one is pretty simple. If a State Administrator receives a complaint about a BD or IA, from another state first thing to do is _________________
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investigate the complaint then fwd
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Administrator can conduct both _______ and _________ investigations.
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public and private
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Information received by the Administrator in a private investigation may only be shared between _________________________
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shared among the officers and employees of the Administrator
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The State Administrator is permitted to inspect a broker-dealer or investment adviser that is not in his state when _________________________
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as long as the transaction involved occurred in that State; or a solicitation was made in that State.
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The Administrator can subpoena the records of a broker-dealer once ___________________________
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he suspects a violation
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Can the Administrator issue orders without giving prior notice? |
Yes
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Can the Administrator enjoin an individual from being in the securities business?
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No, only courts can
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Rules are written by the Administrator to interpret the provisions of the Uniform Securities Act must be _____________ and act like a __________
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published as public record, law
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The Administrator is authorized revoke the registration of _________________________ when the broker-dealer's registration is revoked
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all agents associated with a broker-dealer
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Is the State Administrator is empowered, at a hearing, to administer oaths to witnesses?
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Yes
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The Administrator criminal prosecution power is really just to be able to _____________________________
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may refer a case to the State Attorney General
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Administrator cannot suspend _______________ privileges in any case.
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constitutional
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Can Administrator issue a cease and desist order to a person in the securities business?
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Yes
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Administrator may suspend or revoke a registration after _________, ___________ and have the chance for ______________
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order, notice and opportunity for hearing
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If a cease and desist order is not obeyed, the Administrator has the power to _____________________
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bring action in State court
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Appeals of decisions made by the State Administrator must be filed within ____ days |
60 days with court
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Common Law Provisions cover what kinda things?
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such things as contracts and liability.
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The action that gives rise to a violation of Uniform State law can also cause one to be subject to __________ and ________ charges.
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Fed./State
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When can omission of material facts be covered under criminal liability/PENALTIES vs. only civil liability?
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willful = criminal, unintentional = civil
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Uniform Securities Act anti-fraud rules only applies to fraud involved in the _________________________ (normally all)
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sale of securities.
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Fixed Annuities/Whole Life Insurance are
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pure insurance products
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Making an intentional omission of material fact when recommending a security to a customer would be considered fraudulent if its fails the ____________ test
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reasonable man test
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What is the maximum dollar fine that can be imposed for criminal liability and criminal violations of the Uniform Securities Act?
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$5,000
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The Administrator is empowered to petition a court of law to impose which of the following on an investment adviser for criminal violation of the Uniform Securities Act?
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Criminal violations of the Act are punishable in most States by making restitution to the injured party, fines of up to $5,000 and up to 3 years in jail.
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The statute of limitations for filing claims under the Uniform Securities Act is ___ years.
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5
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A sales representative who unintentionally gives a fictitious quote to a customer subject to buying back __________________________________________
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subject to buying back the security at the original price, plus interest and attorney's costs; less any income received from the security during the period it was held.
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A sales representative who fails to register as an agent of a broker-dealer: Civil or Criminal?
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Civil
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If a customer files suit against a broker-dealer, investment adviser or agent alleging a violation of the Uniform Securities Act and the customer dies, the suit:
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lives on
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For a civil liability is incurred under the Act there must be a ____________
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sale
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hedge clause/exculpatory clause
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Clients always have the right to sue for gross negligence or malfeasance. A "hedge clause," also called an exculpatory clause, is legal language in a contract that seeks to take away these rights from clients. Such clauses have no legal standing and are unenforceable. |
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An agent sells unregistered non-exempt securities to a customer then NO MATTER what is signed the transaction _______________________ and seller must _________________
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The transaction is null and void and the seller is obligated to buy back the security at the original cost plus 6% interest. |
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The Administrator can file a _______ suit.
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civil suit in court
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Under the provisions of the Uniform Securities Act, civil claims must be made within ___ years of the contract of sale, but no later than ___ years of discovery of the facts constituting the violation.
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3,2
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Under the Uniform Securities Act, in a civil suit brought by a purchaser against a seller that is alleged to have violated the Uniform Securities Act, the burden of proof rests with the
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buyer of securities/plantiff
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Offer of Rescission
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a person who has sold securities in a State in violation of State law can offer to rescind the sale to any purchaser. This must be done prior to any purchaser instituting suit. The seller offers in writing, to return all monies paid by the customer for the security.
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Offer of Recission Payment
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An offer must be made to buy back the security at the original purchase price and the customer must be paid interest at the legal rate in the State, less any dividend or interest income received from that security
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If an offerer offers to buy back a securities issue that was inadvertently sold in the State, buyers of the issue have how many days to accept the offer?
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30
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. Criminal liability may not be offset by ____________
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rescission
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An offer to sell a security made by an agent in another state to a customer that lives in the Administrator's state: Can Administrator of the customer state be involved?
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Yes
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Administrator has jurisdiction over an offer of securities or advisory services if an offer: 1) 2) 3) |
originates in the Administrator's State; is directed into the Administrator's State; or is accepted in the Administrator's State.
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Who revokes registration of federal covered advisers?
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SEC only
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The State only has jurisdiction if the adviser has 1) 2) 3) |
-has a office in the state - 6 or more clients in state - gives seminar in state |
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Agent is from State Y and Customer is from State Y: Agent makes over in State Z. What state has power?
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Z
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If advisor in state A sends offer to clinet in state B and without knowledge of broker delaer the mail is fwd to state C. Who has jurisdiction?
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A
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For a television or radio broadcast to come under the jurisdiction of the State Administrator, it must
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originate in that State
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When is the Administrator is empowered to amend or rescind any rule under the Uniform Securities Act?
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as he deems necessary to carry out the provisions of the Act
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The Uniform Securities Act is administered by
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NASAA is the North American Securities Administrators Association
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