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Last Updated: Sep 15, 2026
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| Section | Weight | Objectives |
|---|---|---|
| Administrative Provisions and Remedies | 15% | - Powers of state securities administrators - Civil and criminal liabilities - Investigations, subpoenas, and orders - Judicial review and appeals |
| Regulations of Investment Advisers | 5% | - Definition under Uniform Securities Act - Recordkeeping and reporting rules - Registration and exemptions |
| Regulations of Securities and Issuers | 10% | - Exempt securities and exempt transactions - Registration methods: coordination, qualification, filing - Disclosure and anti-fraud requirements - Definition of securities |
| Regulations of Broker-Dealers | 12% | - Definition and legal status - Exclusions and exemptions from registration - Registration and post-registration requirements - Supervision and compliance obligations |
| Regulations of Investment Adviser Representatives | 5% | - Registration and post-registration duties - Definition and activities requiring registration - Exclusions and exemptions |
| Regulations of Agents of Broker-Dealers | 13% | - Definition and scope of activities - Termination and notice requirements - Exemptions from registration - Registration procedures and Form U4 |
| Ethical Practices and Fiduciary Obligations | 40% | - Advertising and communication rules - Prohibited business practices - Anti-fraud provisions and misrepresentation - Customer suitability and disclosure - Conflicts of interest and compensation - Handling of customer funds and securities |
Which of the following is not a security, as defined by the Uniform Securities Act?
I. an option contract
II. a futures contract on gold
III. a 401K plan
IV. a variable annuity
Correct Answer: B 🗳️
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A broker-dealer will be found guilty of churning an account if the account has a turnover ratio of
Correct Answer: D 🗳️
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Don is a state-registered agent with GetErDone Broker-Dealers. He has three other friends who are
licensed agents-Huey, Dewey, and Louie. Huey is also an agent with GetErDone Broker-Dealers. Dewey
is an agent with a different firm in the same city, CanDo Broker-Dealers. Louie works for a Broker-Dealer
with an office just across the state line. Don can enter a commission-splitting agreement with
Correct Answer: A 🗳️
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Blue Sky Laws are designed to:
Correct Answer: C 🗳️
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Broker-dealer Small & Associates has received a complaint about one of its agents, Mr. Ari Gaunt. Small
& Associates is required to
Correct Answer: A 🗳️
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