Question of the Week

Under the Uniform Securities Act, the Administrator of California may examine the financial books and records of all of the following, EXCEPT?

a) A broker-dealer in Illinois that has no California branches and doesn’t trade in California
b) The main office in Illinois of the California branch referred to above
c) Investment adviser’s office in California
d) The branch office of a broker-dealer in California whose main office is in Illinois


Answer:

The correct answer is a.

The Administrator has jurisdiction over investment advisers, broker-dealers and sales representatives located in the state or involved with securities offers directed into the state. However, the Administrator has no jurisdiction over an office located outside the state, which has no branch office or securities activities within the state.



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