Series 65 Exam
How does a Surety bond meet the requirements of the Uniform Securities Act? - correct answer
✔✔Must provide that any customer who can prove a violation is entitled to collect against the bond
Any time a customer deposits securities with a broker dealer: - correct answer ✔✔a receipt for those
certificates must be issued promptly
What are not considered securities? - correct answer ✔✔Retirement Plans, non-variable insurance
contracts, collectibles, commodities, condos used as personal residence and currencies
Guaranteed under the USA means - correct answer ✔✔Guaranteed by someone other than the issuer as
to Principle, Interest and Dividends...NOT CAPITAL GAINS
A security registered by qualification becomes effective... - correct answer ✔✔Only with an active review
of registration
What are the most common exempt transactions? - correct answer ✔✔Isolated nonissuer transactions,
unsolicited orders, transactions with institutions, transactions between the issuer and underwriter,
transactions by fiduciaries, private placements
Private Placements - correct answer ✔✔10 or fewer offers to noninstitutional clients within 12 months
Does the agent of a BD have to be registered if the security or transaction is exempt? - correct answer
✔✔Yes
Who must notify the administrator when an agent terminates association with a BD? - correct answer
✔✔Both the agent and the BD must notify the administrator
, Who must notify the administrator when an IAR terminates association with an IA? - correct answer
✔✔Depends if the IA is state or federal registered. If state only the IA notifies the administrator. If
federal, only the IAR notifies the administrator
Do agents have to notify the client if they split commisions with another agent of the same or affiliated
BD? - correct answer ✔✔They do not have to inform the client of a commission split
Snowbird Rule - correct answer ✔✔Provides and exemption from registration for all securities
professionals when dealing with vacationing clients. This is subject to the 30 day rule for change of
residence.
Any written complaint must be promptly brought to the attention of? - correct answer ✔✔The
appropriate supervisor
Can a registered agent accept an unsolicited order for a nonexempt unregistered security? - correct
answer ✔✔Yes, it is considered an exempt transaction. However, the administrator retains the right to
have clients acknowledge that the order was truly unsolicited.
Securities Act of 1933 - correct answer ✔✔Registration of securities. Also known as the paper act.
When can nonexempt new issues be sold? - correct answer ✔✔Once the prospectus is effective
If a mutual fund has been registered for more than five years, must a prospectus be delivered during a
sale? - correct answer ✔✔YES!
Securities Act of 1934 - correct answer ✔✔Registration of persons and exchanges (people and places)
including securities information processors and information
Margin requirements - correct answer ✔✔Determined by Board of Governors of Federal Reserve System
(Reg. T) as provided ins the Securities Exchange Act of 1934
Investment Discretion - correct answer ✔✔The ability to select one or more of the following for the
client: Asset, Amount, Action
How does a Surety bond meet the requirements of the Uniform Securities Act? - correct answer
✔✔Must provide that any customer who can prove a violation is entitled to collect against the bond
Any time a customer deposits securities with a broker dealer: - correct answer ✔✔a receipt for those
certificates must be issued promptly
What are not considered securities? - correct answer ✔✔Retirement Plans, non-variable insurance
contracts, collectibles, commodities, condos used as personal residence and currencies
Guaranteed under the USA means - correct answer ✔✔Guaranteed by someone other than the issuer as
to Principle, Interest and Dividends...NOT CAPITAL GAINS
A security registered by qualification becomes effective... - correct answer ✔✔Only with an active review
of registration
What are the most common exempt transactions? - correct answer ✔✔Isolated nonissuer transactions,
unsolicited orders, transactions with institutions, transactions between the issuer and underwriter,
transactions by fiduciaries, private placements
Private Placements - correct answer ✔✔10 or fewer offers to noninstitutional clients within 12 months
Does the agent of a BD have to be registered if the security or transaction is exempt? - correct answer
✔✔Yes
Who must notify the administrator when an agent terminates association with a BD? - correct answer
✔✔Both the agent and the BD must notify the administrator
, Who must notify the administrator when an IAR terminates association with an IA? - correct answer
✔✔Depends if the IA is state or federal registered. If state only the IA notifies the administrator. If
federal, only the IAR notifies the administrator
Do agents have to notify the client if they split commisions with another agent of the same or affiliated
BD? - correct answer ✔✔They do not have to inform the client of a commission split
Snowbird Rule - correct answer ✔✔Provides and exemption from registration for all securities
professionals when dealing with vacationing clients. This is subject to the 30 day rule for change of
residence.
Any written complaint must be promptly brought to the attention of? - correct answer ✔✔The
appropriate supervisor
Can a registered agent accept an unsolicited order for a nonexempt unregistered security? - correct
answer ✔✔Yes, it is considered an exempt transaction. However, the administrator retains the right to
have clients acknowledge that the order was truly unsolicited.
Securities Act of 1933 - correct answer ✔✔Registration of securities. Also known as the paper act.
When can nonexempt new issues be sold? - correct answer ✔✔Once the prospectus is effective
If a mutual fund has been registered for more than five years, must a prospectus be delivered during a
sale? - correct answer ✔✔YES!
Securities Act of 1934 - correct answer ✔✔Registration of persons and exchanges (people and places)
including securities information processors and information
Margin requirements - correct answer ✔✔Determined by Board of Governors of Federal Reserve System
(Reg. T) as provided ins the Securities Exchange Act of 1934
Investment Discretion - correct answer ✔✔The ability to select one or more of the following for the
client: Asset, Amount, Action
