Under the Uniform Securities Act, a registrant who holds custody of client funds must do all of the ...

By Investopedia Staff AAA
Q:
Under the Uniform Securities Act, a registrant who holds custody of client funds must do all of the following EXCEPT:
A) Segregate client funds from their own funds
B) Prompt notice whenever funds or securities have been moved to a new location
C) Arrange for an annual unannounced audit from an independent accountant
D)
A:
The correct answer is d).

A registrant is required to segregate client funds, send notice whenever funds have been moved and arrange for an annual audit at least annually. However, the registrant is required to send a quarterly account statement, not a monthly statement.


RELATED FAQS

  1. A _______ is a person on the trading floor of certain exchanges who holds an inventory ...

    The correct answer is d. A good example of an exchange using the specialist system is the NYSE. Each stock listed on the ...
  2. At the beginning of the year, OPQ Corp. began to lease a building using the capitalized ...

    The correct answer is: c) Step 1: Calculate the Present Value of the lease: PMT = $12,000; N = 7; I = 7.5%*
  3. You are currently reviewing the following information for JKL Corp ...

    Free info on financial certification exams including study guides, exam questions, and much more!
  4. A portfolio hedge is purchased in the form of a spread ...

    Free info on financial certification exams including study guides, exam questions, and much more!
RELATED TERMS
  1. Series 79

    A examination to ensure a candidate is qualified to become a ...
  2. Research Analyst

    A person who prepares investigative reports on equity securities. ...
  3. Series 34

    An exam required for individuals seeking to engage in off-exchange ...
  4. Financial Advisor

    One who provides financial advice or guidance to customers for ...
  5. Series 23

    An exam offered by the Financial Industry Regulatory Authority ...
  6. Series 28

    An exam given by the Financial Industry Regulatory Authority ...

You May Also Like

Related Articles
  1. Insurance

    Municipal Bond Tips For The Series 7 ...

  2. Retirement

    6 Proven Tips For Series 6 Success

  3. Insurance

    Tips For Passing The Series 6 Exam

  4. Professionals

    Banker Or Broker: Which Career Is Right ...

  5. Professionals

    Breaking Down Financial Securities Licenses

Trading Center