Registrations of Persons - Introduction

The following material on registration of persons makes up 30% of your exam. Although this section is not that complicated, it is vital that you are easily able to discern the difference between a broker-dealer, agent, and/or other person. At the end of each part within the section, you will find flashcards to aid your studying. We suggest that you make actual flashcards (3 X 5" index cards work well) to use while preparing.

Exam Tips and Tricks
Be certain that you know your definitions


Consent to Service of Process
We'll start off the section with a brief explanation of consent to service of process as it applies to broker-dealers, agents, investment advisers and investment adviser representatives.

Usually, all persons must sign a consent to service of process, which means that legal papers, such as subpoenas, meant to be served to a registered person, may be served to an Administrator, and will have the same legal force as if served to the individual or company in person. In essence, the Administrator has legally been given power of attorney to receive NON-CRIMINAL grievances on behalf of a registered person by the consent to service of process.

The legal term is that the Administrator has, by the consent to service of process, been appointed as "attorney in fact" to receive legal documents for the registrant.

Broker-Dealer Definition and Exclusions


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RELATED FAQS
  1. Under the Uniform Securities Law, broker-dealers are required to sign a consent ...

    The correct answer is c. The consent to service of process appoints the Administrator as attorney in the event of any lawsuits ... Read Answer >>
  2. When an applicant submits a registration application, under the USA, it must include ...

    A. Has made an application to serve legal papers on behalf of the state's AdministratorB. Has empowered the state's ... Read Answer >>
  3. Under the Uniform Securities Act, registration requirements for an investment adviser ...

    The correct answer is a) Investment advisor representatives do not need to include a minimum amount of net capital since ... Read Answer >>
  4. Under the Uniform Securities Act, the Administration is empowered to perform which ...

    The correct answer is a. The Administrator does have the power to subpoena records and obtain an injunction. Also, a sales ... Read Answer >>
  5. When an agent of a broker-dealer begins employment with another broker-dealer ... ...

    The correct answer is D). When an agent moves from one broker-dealer's employ to another, all parties are responsible for ... Read Answer >>
  6. Under the Uniform Securities Act, registration with the Administrator as an investment ...

    The correct answer is c. I is incorrect, since broker-dealers or their agents who don’t receive a fee for making investment ... Read Answer >>
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