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

Question 1

Under the Uniform Securities Act, who is defined as an 'investment adviser representative' (IAR)?

Accepted Answer

A person who is supervised by an investment adviser and makes investment recommendations or manages client accounts

Answer

Any employee of a registered investment adviser

Answer

Any person who sells securities on behalf of an investment adviser

Answer

A person who prepares marketing materials for an investment adviser

Question 2

What is the typical notice filing requirement for a federally covered investment adviser in a state?

Accepted Answer

Filing a copy of Form ADV and paying a state fee, but not full state registration

Answer

Full state registration as if they were a state-registered adviser

Answer

No filing required in any state

Answer

Filing Form U4 for each IAR located in the state

Question 3

Under the Uniform Securities Act, which of the following is NOT exempt from the definition of a broker-dealer?

Accepted Answer

A firm that regularly buys and sells securities for its own account with the public

Answer

An agent trading only for their own account

Answer

A bank effecting securities transactions

Answer

A person who has no place of business in the state and deals only with issuers

Question 4

What authority does a state securities administrator have under the Uniform Securities Act?

Accepted Answer

The authority to register securities, advisers, and broker-dealers, investigate violations, issue cease-and-desist orders, and seek civil and criminal penalties

Answer

Only the authority to collect registration fees

Answer

Only the authority to approve or deny new securities offerings

Answer

The authority to set national securities regulations

Question 5

Which of the following securities is exempt from registration under the Uniform Securities Act?

Accepted Answer

U.S. government securities

Answer

A new corporate IPO

Answer

A variable annuity contract

Answer

Shares of a new startup company

Question 6

Under the Uniform Securities Act, what is the maximum criminal penalty for willful violations?

Accepted Answer

$5,000 fine and/or 3 years imprisonment

Answer

$5,000 fine and/or 1 year imprisonment

Answer

$10,000 fine and/or 5 years imprisonment

Answer

$50,000 fine and/or 10 years imprisonment