A firm with an office in State X regularly effects securities transactions for retail clients in State X. No exclusion or exemption applies. What does the Uniform Securities Act require before the firm transacts that business?
A. Registration as a broker-dealer in State X
B. Registration only after its first customer complaint
C. Registration as an issuer rather than a broker-dealer
D. No registration if the firm discloses that it is unregistered
Source: USA-1956-NASAA -- Section 201(a), broker-dealer and agent registration requirement
A state-chartered bank executes securities transactions as part of its traditional banking operations. Under the Uniform Securities Act definition, which conclusion is most accurate?
A. Every bank is automatically an investment adviser representative
B. A bank is excluded from the Act's broker-dealer definition
C. A bank is treated as an issuer's agent in every transaction
D. A bank must register as a broker-dealer solely because it handles securities
Source: USA-1956-NASAA -- Section 401(c), definition of broker-dealer and bank exclusion
An agent's registration is approved while she is associated with Broker-Dealer A. She resigns and has not yet become associated with another registered broker-dealer or issuer. What is the status of her agent registration under the Uniform Securities Act?
A. It remains effective indefinitely because she once passed an examination
B. It converts automatically to investment adviser representative registration
C. It is not effective while she lacks the required association
D. It permits transactions for any broker-dealer for 90 days
Source: USA-1956-NASAA -- Section 201(b), effectiveness of an agent's registration during association
An agent terminates an association with a broker-dealer. Which response best reflects the Uniform Securities Act's notification rule?
A. Only the customer with the largest account must be notified
B. No notice is needed if the agent leaves voluntarily
C. Notice is postponed until the next annual renewal
D. The agent and broker-dealer must promptly notify the Administrator
Source: USA-1956-NASAA -- Section 201(b), prompt notice when an agent begins or terminates an association
An individual represents an issuer in transactions involving specified exempt securities, receives no sales commission, and does not otherwise fall within the agent definition. Under the Uniform Securities Act, what is the best conclusion?
A. The individual may fall within an issuer-representative exclusion from the definition of agent
B. The individual is always a broker-dealer because an exempt security is involved
C. The individual is automatically a federal covered adviser
D. The security loses its exemption whenever an issuer uses an employee
Source: USA-1956-NASAA -- Section 401(b), definition of agent and exclusions for qualifying issuer representatives
