Practice Quiz

FINRA Series 63 (NASAA)

Category - Series 63

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Julia Hasty has recently applied with the Administrator to be a registered investment adviser in the state. Eager to open her new business, she has business cards printed that indicate that she is a “state-registered” investment adviser and visits some local businesses, asking them for permission to put some of her cards in their waiting rooms. Has Julia violated any of the provisions of the Uniform Securities Act by distributing her business cards?
  1. No. As long as her application has been submitted and is pending acceptance, Julia has not violated any provisions of the Uniform Securities Act.
  2. No. The provisions of the Uniform Securities Act relate to securities, not people.
  3. Yes. Julia is not permitted to advertise as a “state-registered” investment adviser until she receives notification of the acceptance of her application by the state Administrator.
  4. No. Julia has merely put her business cards in waiting rooms. She has not opened her business to clients yet.
Explanation
Answer: C - Yes. Julia has violated a provision of the Uniform Securities Act by distributing business cards that indicate she is a “state-registered” investment adviser because she has not yet received notification of the acceptance of her application by the state Administrator. The filing of an application for registration is not the same as registration, and the placement of the cards is, at this early point, false advertising.
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