Series 65 – Uniform Investment Adviser Law Exam Uniform Securities Act and State Regulations 2

Question 1

What is a 'registration by coordination' under the Uniform Securities Act?

Accepted Answer

A method where a security registered with the SEC can be simultaneously registered at the state level by coordinating with the federal filing

Answer

A process where multiple states jointly register a single adviser

Answer

A procedure allowing broker-dealers to operate in multiple states with one registration

Answer

A method of registering only after receiving approval from every state where the security will be sold

Question 2

What is a 'registration by qualification' under the Uniform Securities Act?

Accepted Answer

A stand-alone state registration method for securities not registered with the SEC, requiring full disclosure to state regulators

Answer

Registration for advisers who have passed state licensing exams

Answer

A fast-track registration for securities with a long operating history

Answer

A registration method used only by exempt securities

Question 3

Under the Uniform Securities Act, how long does a securities registration remain effective?

Accepted Answer

One year, until December 31 of the year of registration

Answer

Indefinitely unless revoked

Answer

Two years from the date of effectiveness

Answer

Until all registered shares are sold

Question 4

Which of the following would require an investment adviser to register with the state rather than the SEC?

Accepted Answer

An adviser with $90 million AUM and no institutional clients

Answer

An adviser with $150 million AUM

Answer

An adviser advising only registered investment companies

Answer

An adviser with 25 or more institutional clients

Question 5

What is a 'solicitor' in the context of investment adviser regulations?

Accepted Answer

A person who refers clients to an investment adviser for compensation

Answer

An attorney who represents an investment adviser in regulatory proceedings

Answer

A person who solicits securities sales for a broker-dealer

Answer

A compliance officer who solicits adviser registrations

Question 6

What must an investment adviser do before charging an advisory fee more than six months in advance?

Accepted Answer

Obtain written consent and be prepared to refund the pro-rated unearned portion if the contract is terminated

Answer

File a special form with the SEC

Answer

Obtain a surety bond equal to the total prepaid fees

Answer

Register the prepayment arrangement with the state