Q:

All of the following are unethical behaviors prohibited under the Uniform Securities Act EXCEPT:
a) Deliberately failing to follow a client’s instructions
b) Executing a trade that the sales representative believes to be unsuitable at the client’s orders
c) Telling a client that the investment adviser is registered and therefore has been approved by the state Administrator
d) Failing to tell a client that making trades recommended by the investment adviser will subject them to a large tax liability

A:

The correct answer is b.
All registrants must follow the client’s instructions, including executing a trade that the registrant believes is not suitable. It would only be unethical if the registrant had recommended the inappropriate trade. Also, neither an investment adviser nor a sales representative may imply that registration by the Administrator means that they are “approved” by the Administrator.


MORE FAQS

  1. If an issuer wishes to register a security in the state ...

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

  3. How long is the validity period for a Series 63 exam if I have not been registered?

  4. How do I register for the CFA program for the first time?

  5. Can you trade securities before you pass the Series 63 exam?

  6. Under the Uniform Securities Act, registration requirements for an investment adviser representative ...

  7. A corporation, which does virtually all of its business in the state where it has its home offices

  8. Under the Uniform Securities Act, the Administration is empowered to perform which of the following ...

  9. Under the Uniform Securities Act, all of the following are prohibited EXCEPT ...

  10. Under the Uniform Securities Act, which of the following advisers is NOT defined as a federal covered ...

  11. A person whose registration has been revoked by an Administrator due to a felony conviction of a securities-related ...

  12. Under the Uniform Securities Act, registration with the Administrator as an investment adviser is required ...

  13. Under the Uniform Securities Act, client information may not be disclosed to a third party unless such ...

  14. If ABC corporation, which is listed on the New York Stock Exchange ...

  15. According to the USA, it is unlawful for a person to offer to sell a security in a state unless:

  16. Are dividends the best way to make money for retirement?

  17. How many attempts at each CFA exam is a candidate permitted?

  18. What's the average salary of a financial advisor?

  19. Why is Hong Kong considered a tax haven?

  20. Is smart beta cheaper than hedge funds?

RELATED FAQS

  1. If an issuer wishes to register a security in the state ...

    The correct answer is a. Registration by coordination is permitted when the issuer has filed a registration application with ...
  2. Under the Uniform Securities Act, a registrant who holds custody of client funds ...

    The correct answer is d). A registrant is required to segregate client funds, send notice whenever funds have been moved ...
  3. How long is the validity period for a Series 63 exam if I have not been registered?

    Find out how registration begins using Series 63 results and how long scores are valid without registration. Learn more about ...
  4. How do I register for the CFA program for the first time?

    CFA Institute provides prospective CFA candidates with a couple registration options.1) Online Registration: This is the ...
  5. Can you trade securities before you pass the Series 63 exam?

    Find out more about state registration and Series 63 exam scores. Learn how long these scores are valid and how registration ...
  6. 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 ...
RELATED TERMS
  1. Piggyback Registration Rights

    A form of registration rights that grants the investor the right ...
  2. Small Corporate Offering Registration - SCOR

    A form of corporate securities registration designed to reduce ...
  3. SEC Form SP15D2

    A form that concerns the filing of a special financial report ...
  4. Piggy Back Registration

    When an underwriter allows existing company shares to be sold ...
  5. Shelf Registration

    A regulation that a corporation can evoke to comply with U.S. ...
  6. Registered Investment Advisor - RIA

    An advisor or firm engaged in the investment advisory business ...
Hot Definitions
  1. Market Capitalization

    The total dollar market value of all of a company's outstanding shares. Market capitalization is calculated by multiplying ...
  2. Frexit

    Frexit – short for "French exit" – is a French spinoff of the term Brexit, which emerged when the United Kingdom voted to ...
  3. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  4. Down Round

    A round of financing where investors purchase stock from a company at a lower valuation than the valuation placed upon the ...
  5. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  6. Portfolio Investment

    A holding of an asset in a portfolio. A portfolio investment is made with the expectation of earning a return on it. This ...
Trading Center