Series 66 Day 4

Day 4 State Regulations Governing Broker-Dealers and Agents Test
1. Mark recently joined N&N brokerage and is in the process of becoming registered as an agent. What information would be required to furnish to the Administrator as part of his application?
A. His name and address
B. Employment history
C. Financial condition and history
F. Any felony convictions
2. The sole proprietor of an investment adviser decides to close the business. Within weeks, several dissatisfied clients file a civil lawsuit alleging abuses in their accounts. The owner cannot be located; therefore, the clients serve the complaint to the Administrator. The clients sue the owner in court and receive a judgment. The owner reappears claiming the judgment is invalid since he was never notified of the suit. Which of the following statements is TRUE?
C. The judgment is valid unless the Administrator issues an order denying it within 30 days of the court’s decision
3. Tom has been hired as an agent by CTS Brokerage, which is located in Illinois. Will he be required to post a bond if he wishes to be registered in the state?
B. Yes, if Tom has discretionary authority over client’s accounts
4. A new broker-dealer in North Dakota files an application for registration on November 30. The North Dakota Administrator notifies the broker-dealer that its registration is effective as of December 24. When will the BD’s registration expire?
B. December 31 of the same year
5. Which of the following choices is considered a broker-dealer?
D. PQR Company, which sells only mutual funds to individual investors
6. Sandstone Brokerage currently has a single office located in Arizona. Sandstone is in the process of opening an office in New Mexico, where it will serve only banks and other institutional customers. Will Sandstone be required to register as a broker-dealer in New Mexico?
A. Yes, Sandstone will have a place of business in New Mexico
7. Lloyd is in the process of registering as an agent with a broker-dealer. Just this morning, he passed his regulatory examination and received a printout confirming his passing score. May Lloyd begin soliciting client business as soon as he returns to the office?
B. Lloyd’s broker-dealer is properly registered, therefore, he will be able to solicit clients once his compliance officer gives him the OK
8. A broker-dealer has offices in every state in North America. Edward is an agent with the broker-dealer and is presently registered in five of these states. One of Edward’s clients informs him that he is being relocated by his company. In order for Edward to continue to work with his client after he has moved:
D. Edward should register in the state, and generally would be able to conduct business for 60 days before the state declares his registration effective

9. The limited registration provision available to Canadian broker-dealers conducting business in a state permits a broker-dealer to
C Transact business with Canadian residents with whom the broker-dealer had an existing relationship
10. Which of the following statements is NOT TRUE concerning the limited registration status of Canadian broker-dealers?
A They are exempt from the antifraud provisions of the Uniform Securities Act