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15 Cards in this Set
- Front
- Back
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T or F
BDs and Agents must be registers with FINRA and are still subject to registration in the states in which they do business |
T
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T or F
IAs are ONLY registered with the SEC or the states, NOT BOTH |
T
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T or F
IARs are only registered at the state level |
T
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It is unlawful for any person to transact business in a state as an IA or IAR unless
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1.They are registered OR
2.Have no place of business in the state and a.their only clients are institutions or govt agencies NOT members of the public b.during and consecutive 12m period, they do not direct business in any manner to more than 5 CLIENTS. INSTITUTIONAL INV and OFFICERS of the IA are NOT included when counting clients 3.Ther are a FCA who has FILED with the state |
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T or F
It is unlawful for and IA that is required to be registered to employ an IAR unledd the rep is also registered |
T
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T or F
It is unlawful for any BD and/or agent of a BD to solicit or transact business in a state unless BOTH the agent and BD are registered in the state (The 5 client exemption is only for IAs) |
T
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Automatic registration of BDs and IAs:
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Registration of a BD/IA automatically constitutes reg or and agent/IAR who is a partner, officer or director, or a person occupying a similar status of performing similiar functions
-The automatic reg is based upon whether or not the ind is ACTING IN AGENCY OR ADVISORY CAPACITY |
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T or F
When a BD or IA firm FIRST files for registration, the initial reg fee will normally be PRO-RATA for the remainder of the current year and will then be RENEWED ANNUALLY at year end thereafter |
T
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T or F
An applicant cannot perform the functions of a registrant until the reg is effective |
T
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T or F
Changes of a material fact(change of ownership) must be promptly reported to the admin |
T
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T or F
Registration as an IA,BD or Agent does not mean that the firm approved or qualified |
T
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BD /IA who have custody of client funds or sec or have discretion over client accounts may be required to have:
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1.Minimum capital-Set by admin
2.Surety bond-as determined by the admin and may vary from state to state 3.Examination of books and records- as determined by the admin |
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Agents who have discretionary authority over client funds may be required to have:
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1.Surety bond
2.Qaulification exams 3.Do NOT have to have min capital req |
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T or F
IARs-the USA is SILENT w regard to bonding and other req for IARS. Such req would be left to the state admin |
T
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Notification of termination
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When an agent BEGINS or TERMINATES employment, the admin must be PROMPTLY notified by both the agent AND the BD
-Same for IA and IARS |
