The Uniform Securities Act states that an Administrator may require a firm to "require the filing of any prospectus, pamphlet, circular, form letter, advertisement, or other sales literature or advertising communication addressed or intended for distribution to prospective investors, including clients or prospective clients of an investment adviser, unless the security or transaction is exempted."

Exempted securities include the following:

  • Federal covered securities
  • Any security issued or guaranteed by Canada
  • Any security issued or guaranteed by a bank, savings institution or trust company
  • Any security issued or guaranteed by any federal credit union or any credit union
  • Any security issued or guaranteed by any railroad or other common carrier, public utility, or holding company
  • Securities issued or guaranteed by non-profits
  • Any investment contract issued in connection with an employees' stock purchase, savings, pension, profit-sharing or similar benefit plan


Exam Tips and Tricks
You can expect a question on the test regarding the Telephone Consumer Protection Act of 1991, which states that organizations must do the following:
  • Maintain do-not-call lists. When a prospective recipient of a call asks to be put on the list, the firm must keep his or her name on record for 10 years.
  • Make sure that reps understand how to use the list and immediately record any names and phone numbers of people who wish to be on the do-not-call list.
  • Only call homes of prospective clients between the hours of 8:00 AM and 9:00 PM in the customer\'s time zone.



Introduction

Related Articles
  1. Insurance

    Brokerage Functions: Underwriting And Agency Roles

    Learning about these various activities can give insight into how securities are issued and traded.
  2. Financial Advisor

    Cold Call Without Getting The Cold Shoulder

    Learn how to warm up prospective clients to your business and your abilities.
  3. Financial Advisor

    How to Construct an Annual Review for Clients

    One of the best things that advisors can provide to clients is an annual review of their financial situation. Here are some guidelines.
  4. Financial Advisor

    Series 63, Series 65 Or Series 66?

    When joining the world of investment professionals, you must take the right exams.
  5. Financial Advisor

    How to Impress Clients: The First Meeting

    When meeting a prospective client you don’t want your first impression to be your last. Here are some tips to make sure there's a second meeting.
  6. Investing

    How Does Securities Lending Work?

    Securities lending is the act of loaning a stock or other security to an investor or firm.
  7. Small Business

    Uncovering The Securities Firm

    Learn about the various departments of a securities firm and the professionals who make it work.
  8. Financial Advisor

    Tips for Breaking the Ice with New Clients

    Tips and methods to ensure a successful start to client/advisor relationships.
  9. Financial Advisor

    Who Should Buy a Guaranteed Issue Life Insurance Policy?

    Guaranteed issue life insurance policies have added costs and reduced benefits that make them suitable for only a limited pool of buyers.
  10. Financial Advisor

    Understanding Series 63

    Series 63 is a securities license that entitles the holder to sell securities in a particular state.
Frequently Asked Questions
  1. Depreciation Can Shield Taxes, Bolster Cash Flow

    Depreciation can be used as a tax-deductible expense to reduce tax costs, bolstering cash flow
  2. What schools did Warren Buffett attend on his way to getting his science and economics degrees?

    Learn how Warren Buffett became so successful through his attendance at multiple prestigious schools and his real-world experiences.
  3. How many attempts at each CFA exam is a candidate permitted?

    The CFA Institute allows an individual an unlimited amount of attempts at each examination.Although you can attempt the examination ...
  4. What's the average salary of a market research analyst?

    Learn about average stock market analyst salaries in the U.S. and different factors that affect salaries and overall levels ...
Trading Center