Administrative Procedures

Front 1

If the Administrator wishes to enter an order suspending or revoking a registration, this action must be in the _________interest

Back 1

public

Front 2

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

Back 2

10

Front 3

_________________ is not a reason for denying registration to an investment adviser representative under the Uniform Securities Act.

Back 3

Lack of experience alone

Front 4

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?

Back 4

ALL - X Y Z

Front 5

Federal covered adviser limits Administrator(s) from ONLY doing what to them?

Back 5

require the adviser to register in the State

Front 6

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 _________________

Back 6

investigate the complaint then fwd

Front 7

Administrator can conduct both _______ and _________ investigations.

Back 7

public and private

Front 8

Information received by the Administrator in a private investigation may only be shared between _________________________

Back 8

shared among the officers and employees of the Administrator

Front 9

The State Administrator is permitted to inspect a broker-dealer or investment adviser that is not in his state when _________________________

Back 9

as long as the transaction involved occurred in that State; or a solicitation was made in that State.

Front 10

The Administrator can subpoena the records of a broker-dealer once ___________________________

Back 10

he suspects a violation

Front 11

Can the Administrator issue orders without giving prior notice?

Back 11

Yes

Front 12

Can the Administrator enjoin an individual from being in the securities business?

Back 12

No, only courts can

Front 13

Rules are written by the Administrator to interpret the provisions of the Uniform Securities Act must be _____________ and act like a __________

Back 13

published as public record, law

Front 14

The Administrator is authorized revoke the registration of _________________________ when the broker-dealer's registration is revoked

Back 14

all agents associated with a broker-dealer

Front 15

Is the State Administrator is empowered, at a hearing, to administer oaths to witnesses?

Back 15

Yes

Front 16

The Administrator criminal prosecution power is really just to be able to _____________________________

Back 16

may refer a case to the State Attorney General

Front 17

Administrator cannot suspend _______________ privileges in any case.

Back 17

constitutional

Front 18

Can Administrator issue a cease and desist order to a person in the securities business?

Back 18

Yes

Front 19

Administrator may suspend or revoke a registration after _________, ___________ and have the chance for ______________

Back 19

order, notice and opportunity for hearing

Front 20

If a cease and desist order is not obeyed, the Administrator has the power to _____________________

Back 20

bring action in State court

Front 21

Appeals of decisions made by the State Administrator must be filed within ____ days

Back 21

60 days with court

Front 22

Common Law Provisions cover what kinda things?

Back 22

such things as contracts and liability.

Front 23

The action that gives rise to a violation of Uniform State law can also cause one to be subject to __________ and ________ charges.

Back 23

Fed./State

Front 24

When can omission of material facts be covered under criminal liability/PENALTIES vs. only civil liability?

Back 24

willful = criminal, unintentional = civil

Front 25

Uniform Securities Act anti-fraud rules only applies to fraud involved in the _________________________ (normally all)

Back 25

sale of securities.

Front 26

Fixed Annuities/Whole Life Insurance are

Back 26

pure insurance products

Front 27

Making an intentional omission of material fact when recommending a security to a customer would be considered fraudulent if its fails the ____________ test

Back 27

reasonable man test

Front 28

What is the maximum dollar fine that can be imposed for criminal liability and criminal violations of the Uniform Securities Act?

Back 28

$5,000

Front 29

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?

Back 29

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.

Front 30

The statute of limitations for filing claims under the Uniform Securities Act is ___ years.

Back 30

5

Front 31

A sales representative who unintentionally gives a fictitious quote to a customer subject to buying back __________________________________________

Back 31

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.

Front 32

A sales representative who fails to register as an agent of a broker-dealer: Civil or Criminal?

Back 32

Civil

Front 33

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:

Back 33

lives on

Front 34

For a civil liability is incurred under the Act there must be a ____________

Back 34

sale

Front 35

hedge clause/exculpatory clause

Back 35

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.

Front 36

An agent sells unregistered non-exempt securities to a customer then NO MATTER what is signed the transaction _______________________ and seller must _________________

Back 36

The transaction is null and void and the seller is obligated to buy back the security at the original cost plus 6% interest.

Front 37

The Administrator can file a _______ suit.

Back 37

civil suit in court

Front 38

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.

Back 38

3,2

Front 39

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

Back 39

buyer of securities/plantiff

Front 40

Offer of Rescission

Back 40

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.

Front 41

Offer of Recission Payment

Back 41

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

Front 42

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?

Back 42

30

Front 43

. Criminal liability may not be offset by ____________

Back 43

rescission

Front 44

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?

Back 44

Yes

Front 45

Administrator has jurisdiction over an offer of securities or advisory services if an offer:

1)

2)

3)

Back 45

originates in the Administrator's State; is directed into the Administrator's State; or is accepted in the Administrator's State.

Front 46

Who revokes registration of federal covered advisers?

Back 46

SEC only

Front 47

The State only has jurisdiction if the adviser has

1)

2)

3)

Back 47

-has a office in the state

- 6 or more clients in state

- gives seminar in state

Front 48

Agent is from State Y and Customer is from State Y: Agent makes over in State Z. What state has power?

Back 48

Z

Front 49

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?

Back 49

A

Front 50

For a television or radio broadcast to come under the jurisdiction of the State Administrator, it must

Back 50

originate in that State

Front 51

When is the Administrator is empowered to amend or rescind any rule under the Uniform Securities Act?

Back 51

as he deems necessary to carry out the provisions of the Act

Front 52

The Uniform Securities Act is administered by

Back 52

NASAA is the North American Securities Administrators Association