Series 63 – Knopman Questions with Correct Answers
Definition of "persons" under the Uniform Securities Act Correct
Answer-Governments, government agencies, human beings
What is not considered a person under the USA? Correct Answer-An
equitable interest in a corporation
Terms that describe persons who are human beings under the USA
Correct Answer-natural persons, individuals
The model law that most states have adopted as the basis for their
securities regulations Correct Answer-Uniform Securities Act (USA)
Definition of the term "state" under the USA Correct Answer-any state,
territory, or possession of the United States
All persons who are state securities-registered must renew their
registrations each Correct Answer-Dec 31
How state registration fees are assessed under the USA Correct Answer-
annually, not pro-rated for partial years
Upon the merger of a broker-dealer with another firm, when the state
registration fee is due Correct Answer-A fee is assessed on the next Dec
31; the surviving firm receives a carry-over registration and does not pay
a fee at the time of the merger
,Under the USA, agents of two firms that merge retain their registration
and are associated with Correct Answer-the successor firm
The type of client notification required when a registered person changes
his/her firm association Correct Answer-None. Information does not
need to be sent to clients. However, the change must be promptly
updated with the Administrator.
When a registered person must notify the Administrator about any
changes to information in his/her registration, such as firm association or
address Correct Answer-Promptly
State registration requirements for fingerprints and character affidavits
consists of Correct Answer-no requirements; fingerprints and character
affidavits are not required with registration at the state level
The type of convictions that can result in statutory disqualification of a
state registration Correct Answer-conviction for any felony in the past
10 years and conviction of any securities- or money-related
misdemeanor in the past 10 years
Regulatory action that can result in a statutory disqualification from
registration Correct Answer-An injunction by the SEC, state securities
Administrator, or self-regulatory organization
,During an application for securities registration, a personal bankruptcy
must be reported if it occurred during Correct Answer-the past 10 years;
bankruptcy is not a statutory disqualification, but it must be disclosed
When a personal bankruptcy can be grounds for denying or revoking a
securities registration Correct Answer-when the applicant is currently
insolvent (bankrupt)
The period during which a state Administrator may suspend or revoke a
registration based on information submitted on an application Correct
Answer-only during the first 90 days of registration (after 90 days,
inaccuracies in the application cannot be used to justify a denial of
registration)
When an application for securities registration normally become
effective Correct Answer-noon, 30 days after filing (however, the
Administrator may accelerate or delay effectiveness)
The time period during which an agent can continue doing business with
a client under an existing state registration, after that client moves to a
new state Correct Answer-30 days
The type of state registration or renewal application that must include a
consent to service of process Correct Answer-only the initial
registration, not renewals
, The scope of the permission granted by an agent under a consent to
service of process Correct Answer-The agent agrees to accept service on
civil actions related to the securities industry. The consent does not
include criminal actions or civil actions outside the industry
The impact of a broker-dealer's registration suspension on its registered
employees is Correct Answer-all registrations of its employees are
suspended until the firm's registration is reinstated
The jurisdiction of FINRA in registering Investment Advisors is Correct
Answer-None. The SEC and state register and regulate Investment
Advisors
Obtaining state registration with an Administrator means that a broker-
dealer has qualified to Correct Answer-lawfully sell securities in the
state of registration
The role of the Administrator in verifying the truth and accuracy of a
broker-dealer's registration filing is Correct Answer-None. The
administrator does not imply that the registration is true and accurate-
only that the firm has made sufficient disclosure to sell securities
A broker-dealer can charge a client for a service only when Correct
Answer-the service has been performed (not when it is promised,
requested, or contracted)
Definition of "persons" under the Uniform Securities Act Correct
Answer-Governments, government agencies, human beings
What is not considered a person under the USA? Correct Answer-An
equitable interest in a corporation
Terms that describe persons who are human beings under the USA
Correct Answer-natural persons, individuals
The model law that most states have adopted as the basis for their
securities regulations Correct Answer-Uniform Securities Act (USA)
Definition of the term "state" under the USA Correct Answer-any state,
territory, or possession of the United States
All persons who are state securities-registered must renew their
registrations each Correct Answer-Dec 31
How state registration fees are assessed under the USA Correct Answer-
annually, not pro-rated for partial years
Upon the merger of a broker-dealer with another firm, when the state
registration fee is due Correct Answer-A fee is assessed on the next Dec
31; the surviving firm receives a carry-over registration and does not pay
a fee at the time of the merger
,Under the USA, agents of two firms that merge retain their registration
and are associated with Correct Answer-the successor firm
The type of client notification required when a registered person changes
his/her firm association Correct Answer-None. Information does not
need to be sent to clients. However, the change must be promptly
updated with the Administrator.
When a registered person must notify the Administrator about any
changes to information in his/her registration, such as firm association or
address Correct Answer-Promptly
State registration requirements for fingerprints and character affidavits
consists of Correct Answer-no requirements; fingerprints and character
affidavits are not required with registration at the state level
The type of convictions that can result in statutory disqualification of a
state registration Correct Answer-conviction for any felony in the past
10 years and conviction of any securities- or money-related
misdemeanor in the past 10 years
Regulatory action that can result in a statutory disqualification from
registration Correct Answer-An injunction by the SEC, state securities
Administrator, or self-regulatory organization
,During an application for securities registration, a personal bankruptcy
must be reported if it occurred during Correct Answer-the past 10 years;
bankruptcy is not a statutory disqualification, but it must be disclosed
When a personal bankruptcy can be grounds for denying or revoking a
securities registration Correct Answer-when the applicant is currently
insolvent (bankrupt)
The period during which a state Administrator may suspend or revoke a
registration based on information submitted on an application Correct
Answer-only during the first 90 days of registration (after 90 days,
inaccuracies in the application cannot be used to justify a denial of
registration)
When an application for securities registration normally become
effective Correct Answer-noon, 30 days after filing (however, the
Administrator may accelerate or delay effectiveness)
The time period during which an agent can continue doing business with
a client under an existing state registration, after that client moves to a
new state Correct Answer-30 days
The type of state registration or renewal application that must include a
consent to service of process Correct Answer-only the initial
registration, not renewals
, The scope of the permission granted by an agent under a consent to
service of process Correct Answer-The agent agrees to accept service on
civil actions related to the securities industry. The consent does not
include criminal actions or civil actions outside the industry
The impact of a broker-dealer's registration suspension on its registered
employees is Correct Answer-all registrations of its employees are
suspended until the firm's registration is reinstated
The jurisdiction of FINRA in registering Investment Advisors is Correct
Answer-None. The SEC and state register and regulate Investment
Advisors
Obtaining state registration with an Administrator means that a broker-
dealer has qualified to Correct Answer-lawfully sell securities in the
state of registration
The role of the Administrator in verifying the truth and accuracy of a
broker-dealer's registration filing is Correct Answer-None. The
administrator does not imply that the registration is true and accurate-
only that the firm has made sufficient disclosure to sell securities
A broker-dealer can charge a client for a service only when Correct
Answer-the service has been performed (not when it is promised,
requested, or contracted)
