An agent working for a broker-dealer mistakenly sends an investment adviser some bonds that the adviser purchased on behalf of his client instead of directing the bonds to the financial institution that is serving as the qualified custodian of the client's funds.
If the investment adviser wants to avoid being considered custodian of this client's account, what must the adviser do?

• A.Record what securities were sent, when he received them, and when he forwarded them--which
• B.Record what securities were sent, when he received them, and when he forwarded them--which must be within three business days-to his client.
• C.Record what securities were sent, when he received them, and when he forwarded them--which must be within twenty-four hours-to his client.
• D.Record what securities were sent, when he received them, and when he forwarded them--which must be within twenty-four hours-to the qualified custodian of the client's funds.

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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 naive clients, who never pay attention to the confirmation statements BondsRUs sends them.
BondsRUs is guilty of

• A.nothing. It is acting as a dealer in bonds and, as such, can charge its clients whatever the clients are
  willing to pay.
• B.overcharging its clients by unreasonable markups. A $9 dealer's spread on Treasury bonds is
  unwarranted.
• C.fraud.
• D.both B and C.

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Ari Gaunt is employed by a small state-registered broker-dealer and has recently received notification that his application to be a registered agent of the state has been accepted. Now that he is licensed to execute transactions for the firm's clients, Ari has a batch of business cards printed up, with a picture of himself on the right-hand side of the card. Underneath the picture is the caption, "State-Approved Agent." Will Ari be violating any securities laws if he distributes these business cards?

• A.No. However, he may be violating company policy of the broker-dealer he works for by designing his own cards.
• B.No. His registration with the Administrator of the state has been accepted, so he is entitled to call himself a "State-Approved Agent."
• C.Yes. Agents are not permitted to include a picture of themselves on their business cards.
• D.Yes. It is a violation of a securities law to suggest that he has been approved by the state Administrator.

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