Laws & RegulationsQuestion 12 of 100
A broker-dealer with no place of business in a state deals exclusively with which type of client and may qualify for an exemption from registration in that state?
a.Retail walk-in customers
b.Institutional clients such as other broker-dealers and banks
c.First-time individual investors
d.Clients referred by local advertising
Explanation
A broker-dealer with no place of business in the state may be exempt from registration if it deals only with institutional clients, other broker-dealers, or issuers. Dealing with retail customers in the state generally triggers registration. The exemption is designed for limited, professional-to-professional activity.
Law Reference: Uniform Securities ActPractice all 100 questions free — no signup required.
Related questions on this topic
- Which of the following is an exempt TRANSACTION under the Uniform Securities Act?
- The state Administrator may deny, suspend, or revoke the registration of an agent if the agent:
- Under NASAA model rules on custody, an investment adviser that has custody of client funds or securities generally must:
- Under the Investment Advisers Act, an adviser's brochure (Form ADV Part 2) must be delivered to a client:
- An investment adviser wants to enter a contract that assigns the advisory agreement to another firm following a merger. Under the Uniform Securities Act, assignment of an advisory contract generally requires:
- Which of the following best describes a fiduciary obligation that an investment adviser owes but a broker-dealer historically did not owe under a pure suitability standard?
Last reviewed: · editorial process
PrepPass Editorial Team · Verified against NASAA Series 66 Uniform Combined State Law Exam · How we review