Series 66 For Dummies, book p. 81-84, pdf page 99-102

Effective date

• Dec 31 is of NO importance
• coordination: registration happens when SEC accepts registration
• qualification: effective when Administrator says so

Registration statement amendment

• public offering price
• underwriters' discounts and commissions are not changed from the respective amounts stated in the original registration statement

Quiz 2F (2/2)

1. ABC has applied for the registration of its securities with the SEC as required by the Securities Act of 1933 and wants to register its securities in the state of Illinois and several neighboring states. ABC would most likely register by coordination. True.
2. Any company may register by qualification whether or not it files a statement with the SEC. True.

Exemptions from registration

• exempt security
• exempt transaction-exempt from regulatory control of the state
• sale to certain financial institutions

Illegal UNLESS

• registered under the act
• security or transaction is exempt under the act
• it is a federal covered security

Exempt securities

• US and Canadian government and municipal securities
• foreign government securities
• depository institutions (1) representing interest in a debt, (2) guaranteed by bank, savings institution, trust company 
• insurance company securities-stocks, bonds issued by insurance companies
• public utility securities or equipment trust certificate issued by a railroad
• federal covered securities: rights, warrants, preferred stock, debt securities
• securities issued by nonprofit organizations: non profits
• securities issued by cooperatives: issued by nonprofit membership cooperative
• securities of employee benefit plans
• certain money market instruments

Facts:

• Commercial paper, draft, bill of exchange, banker's acceptance 1)matures in 9mo, 2)issued in $50k blocks, 3) receives one of 3 of highest ratings by rating agencies

EXEMPT securities

• foreign government securities
• insurance company securities
• federal covered securities (listed on exchanges or Nasdaq and registered investment companies 
• issued by regulated banks

Quiz 2G

1. Which of the following securities is(are) exempt from the registration and advertising requirements under the USA? shares of investment companies, shares sold on the Nasdaq market, promissory notes of 100k that mature in 30 days,shares sold on the New York Stock Exchange

2. Which of the following securities is NOT exempt from the registration and advertising requirements of the USA? Variable annuity contracts