Uniform Securities Act and State Regulations Flashcards
6 cards from real Series 65 – Uniform Investment Adviser Law Exam practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Uniform Securities Act and State Regulations flashcards as text
What is a 'registration by coordination' under the Uniform Securities Act?
Answer: A method where a security registered with the SEC can be simultaneously registered at the state level by coordinating with the federal filing
Registration by coordination allows issuers filing a registration statement with the SEC to use that same filing to coordinate state registration, becoming effective at the same time as the federal registration.
What is a 'registration by qualification' under the Uniform Securities Act?
Answer: A stand-alone state registration method for securities not registered with the SEC, requiring full disclosure to state regulators
Registration by qualification is used for securities that are not registered federally; the issuer must provide full disclosure to and obtain approval from state securities regulators.
Under the Uniform Securities Act, how long does a securities registration remain effective?
Answer: One year, until December 31 of the year of registration
Under the Uniform Securities Act, a securities registration is effective for one year and expires on December 31 of the year it was granted.
Which of the following would require an investment adviser to register with the state rather than the SEC?
Answer: An adviser with $90 million AUM and no institutional clients
An adviser with less than $100 million in AUM (and not subject to mandatory SEC registration) must register with the appropriate state securities regulator.
What is a 'solicitor' in the context of investment adviser regulations?
Answer: A person who refers clients to an investment adviser for compensation
A solicitor is an individual or firm paid to refer prospective clients to an investment adviser; this arrangement requires a written agreement and disclosure to clients.
What must an investment adviser do before charging an advisory fee more than six months in advance?
Answer: Obtain written consent and be prepared to refund the pro-rated unearned portion if the contract is terminated
If an adviser collects fees more than six months in advance, the client must provide written consent and the adviser must refund the unearned, pro-rated portion if the contract is terminated.