Series 63

Series 63 practice questions, page 7 of 10, with answer review and explanations.

Question 31

Which of the following entities must sign a "consent to service of process," thereby allowing the Administrator to receive legal documents that are meant to be served to the entity in place of that entity? I. agents - II. investment advisers - III. investment adviser representatives IV. broker-dealers -

  1. I and IV only
  2. II and III only
  3. II and IV only
  4. I, II, III, and IV

Question 32

Which of the following would fall under the definition of "agent," as defined by the Uniform Securities Act (USA)?

  1. Joe works as an administrative assistant for broker-dealer GetErDone, doing data entry, filing client forms that contain confidential information, and directing calls to registered representatives of the firm.
  2. Freedom broker-dealers executes the purchase and sale of securities for its customers.
  3. TrustUs Bank has a subsidiary operation that sells mutual funds to the public.
  4. None of the above would fall under the definition of "agent," as defined by the Uniform Securities Act (USA.)

Question 33

The 2003 NASAA Model Rule requires that investment advisers that are not federal covered maintain their records for at least

  1. three years.
  2. five years.
  3. seven years.
  4. Investment advisers must maintain their records for as long as they remain registered with the state.

Question 34

Individual states are prohibited from requiring a broker-dealer or investment adviser to file financial reports more frequently than:

  1. once a year.
  2. twice a year.
  3. four times a year.
  4. twelve times a year.

Question 35

A-2-Z Associates advertises itself as a full service brokerage firm that will buy and sell securities for its clients, as well as provide investment advice to them. Its brochure provides a variety of plans to which a client can subscribe. The basic plan is the cheapest and allows the client a maximum number of trades per month for a specified fee. Another, slightly more expensive, plan provides the client with the same maximum number of trades per month, but the client also receives a personalized quarterly review of his portfolio along with advice for restructuring his portfolio based on such factors as current market conditions and specific industry or company information. The most expensive plan is one in which the client is assigned to an individual portfolio manager, who will take total responsibility for the asset allocation of the client's portfolio and will provide the client with monthly reports. Based on the services A-2-Z provides, it must register with the state as:

  1. a broker-dealer.
  2. an investment adviser.
  3. both a broker-dealer and an investment adviser.
  4. an investment adviser representative.