Series 63 – Uniform Securities Agent State Law Exam (Series 63) - Finra Exam Questions

An arrangement wherein a terminally ill person sells a second party his life insurance policy at a discount from its face value, giving the buyer the right to the policy’s face value when the seller dies is called a:

Which of the following is not considered to be a security, as defined by the Uniform Securities Act (USA)?

In which of the following scenarios is an investment adviser representative required to disclose the fact that someone other than the representative performed the research on which his advice to the client is based? I . The investment adviser representative recommends the same asset allocation for his client that a buddy of his did after his buddy had done some research for a client with similar characteristics. II . The investment adviser representative provides a recommendation for his client based on research provided by a broker-dealer that provides the investment adviser with its analysts’ recommendations in return for trades that the investment adviser executes using the services of the broker-dealer, as well as a couple of other research sources he finds on the internet. III . The investment adviser representative submitted his client’s information to a data base that provided a recommendation for the asset allocation of the client’s investment monies that the adviser deemed was sound and, therefore, recommended it to his client.

Under the guidelines of the Bank Secrecy Act (BSA), the Treasury Department now requires broker- dealers to obtain and keep certain information relating to clients that make or receive funds transfers that involve

BondsRUs is a broker-dealer that (unsurprisingly) specializes in bonds. The firm has found that it is
able to sell Treasury bonds that it buys for $90 per $100 of par value for $99 per $100 of par value to
some of its more naïve clients, who never pay attention to the confirmation statements BondsRUs sends them. BondsRUs is guilty of