Thursday, September 10, 2015

Series 66 For Dummies, pdf p.72-74

National Securities Markets Improvements Act of 1966
  • eliminates duplication with state and federal laws for the registration of securities and investment advisers
state
  • any 50 states
  • any territory/possession of the United States which includes American Samoa and Guam
  • includes District of Columbia
  • includes Puerto Rico
definition
  • important
  • creates jurisdiction
NOT an agent
  • when buying and selling EXEMPT securities 
  • EXEMPT transactions
Registration exemption
  • federal covered adviser-a investment adviser CAN be EXEMPT from state registration 
Questions (first attempt 3/4):
  • 1. A final order may be entered only after opportunity for a hearing has been granted. TRUE. 
  • *2. If an administrator determines that a registration statement for a security is incomplete, he may issue a cease and desist order. FALSE, cease and desist is for people, stop orders are for securities. 
  • 3. Under the Uniform Securities Act, the city of Atlanta would be included in the definition of the term person.TRUE
  • 4. The GEMCO Employees Retirement Plan currently has assets of $750,000. Under the USA, the plan would be considered an investment adviser. FALSE
Persons subject to state registration:

  • Broker/dealers-legal persons such as corporations or partnerships
  • agents-always individuals (natural persons)
  • investment advisers-generally legal persons such as corporations or partnerships
  • investment adviser representatives-always persons
broker dealer
  • any person engaged in the business of effecting transactions in securities for the accounts of others or for its own account
  • person with office in state who buys and sells securities for the accounts of others
  • firms where registered representatives work w. sales and trading
  • agency: buy and sell client's securities
  • proprietary: buy and sell for own accounts 

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