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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

• A. $5,000 or more.
• B. $100,000 or more.
• C. $10,000 or more.
• D. $3,000 or more.

John Ketchum is an investment adviser representative with Load Investment Advisers, which has a family
of load funds that it encourages its representatives to promote. Representatives of the firm that sell
shares in these funds to their clients receive a greater share of the load than they do if they sell load funds
offered by other firms. Based on these facts, which of the following statements is true?

• A. Both A and B are true.
• B. John must provide his clients with a written disclosure that he will receive a greater remuneration for
  selling shares in the Load family of funds than if he sells them shares in other funds before he provides his
  clients with any investment advice.
• C. John is obligated to try to sell his clients the funds offered by Load first since he is affiliated with them
  and has a fiduciary responsibility to them.
• D. If, after reviewing the information form a client has filled out, John believes that one of Load's funds is
  an appropriate investment, John can recommend that the client invest in that fund. There is no disclosure
  requirement necessary if the recommendation is a sound one that can be proved to be based on the
  client's specific situation.

Which of the following does not describe a prohibited practice for broker-dealers under the NASAA Model
Rules?
I. SecureMoney Broker-Dealers has received a request from a client who wants SecureMoney to "identify
a few solid firms in the Asian market and invest up to $20,000 in them." SecureMoney executes the
purchases and receives the requisite signed discretionary authorization from the client before the
settlement date.
II. CanDo Broker-Dealers executes a margin transaction for a client, promptly receiving a signed, written
margin agreement from the client after the transaction takes place.
III. GetErDone Broker-Dealers receives a call from a client who wants to purchase some securities on
margin. GetErDone has the client come into the office to sign a properly executed margin agreement prior
to effecting the transaction.

• A. II and III only
• B. I and III only
• C. III only
• D. None of the selections are prohibited practices.

Ms. Muffet is employed by Spyder Broker-Dealers. Her job duties include providing price quotes and
executing purchases and sales for the firm's clients. She is paid a salary plus commission. Ms. Muffet is

• A. an agent.
• B. a broker-dealer.
• C. an investment adviser representative.
• D. an investment adviser.

Ms. Ding is an administrative assistant to the manager of a mutual fund. Most of her day is spent entering
data onto a spreadsheet for her boss and answering phone calls. Some of the calls require her to provide
information about the some of the fund's financial aspects, such as its closing net asset value on the
previous day. What type of registration does Ms. Ding require in order to perform her duties?

• A. Ms. Ding needs to apply for registration as an agent since she is providing financial information.
• B. Ms. Ding does not need to apply for any type of registration. She is merely supplying information and is
  not engaged in the purchase or sale of the fund shares.
• C. Ms. Ding will need to apply for registration as both an agent and an investment adviser representative
  in this case since she is providing information about a mutual fund.
• D. Ms. Ding needs to apply for registration as an investment adviser representative since she is providing
  information about a specific mutual fund.