Which of the following may be required to be filed with the Administrator quizlet?

The procedure for entering an order to purchase a security for the account of a customer is to complete an order ticket. Which of the following would be found on an order ticket?

A) customer name, execution price, time of order entry, and time of execution or cancellation.
B) customer name, customer address, execution price, time of execution or cancellation.
C) account number, execution price, time of order entry, time of execution or cancellation, and terms and conditions of the order.
D) account number, customer address, time of order entry, and terms and conditions of the order.

Which of the following regarding the registration of investment advisers and their representatives is TRUE?

A) ABC Advisers, Inc., registered with the Administrator, employs an investment adviser representative who left the employment of another investment advisory firm six months ago. ABC must notify the Administrator of this association promptly.
B) An investment adviser representative, terminated his employment with ABC Advisers and, six months later, was employed as an advisory representative by KLM, a federal covered adviser. Each firm is required to notify the Administrator of each event.
C) XYZ Advisers, Inc., is a federal covered investment advisory firm registered with the SEC; therefore, its representatives need not be registered with the Administrator.
D) ABC Advisers, Inc., is an investment advisory firm registered with the Administrator; therefore, its representatives need not be registered with the Administrator.

An agent submits a list of recommendations to a customer that includes 5 different securities. The customer chooses to buy a round lot of 1 of the 5 securities recommended (a stock in which the agent's broker/dealer makes a market). The firm, in completing the trade, charges a markup that is larger than normal for a stock transaction. Is this allowable under the Uniform Securities Act?

A) Yes, it is allowable, but proper disclosure is required.
B) Yes, markup schedules are dependent upon the type of security, broker/dealer risk, services that the broker/dealer provides, and effort in acquiring the security.
C) No, under the circumstances given, it is a prohibited practice to charge a higher than normal markup.
D) No, the markup schedule is set and cannot be changed for an individual trade.

One of the effects of the NSMIA was to establish the pre-emption of federal law over state law. A broker/dealer registered in multiple states is going to be registered with the SEC as well. NSMIA amended the Securities Exchange Act of 1934 (the 34 Act) to add section 15(h)(1) which reads as follows:

"No law, rule, regulation, or order, or other administrative action of any State or political subdivision thereof shall establish capital, custody, margin, financial responsibility, making and keeping records, bonding, or financial or operational reporting requirements for brokers, dealers, municipal securities dealers, government securities brokers, or government securities dealers that differ from, or are in addition to, the requirements in those areas established under this title."

However, had this question been dealing with an investment adviser registered on the state level, then it would have been the requirements of the state where the principal office of the adviser is located.

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