Brad Smith works for GHI Firm. GHI firm is a registered Broker-Dealer in State A, B and C and a registered IA in State A. Brad is a registered IAR in State A, and travels to State B because he wants to meet with some potential new clients in State B. Brad sets up an office in a hotel room, meets with the potential clients, and gives them advice about their portfolio.

[A] This is acceptable because the GHI Firm is registered as a B/D in State B.

[B] This is unacceptable because Brad is not registered in State B.

[C] This is acceptable because Brad does not have an office in State B.

[D] This is unacceptable because Brad is not an Agent.

Question

Computers and Technology

Kyan Wagner

18 December, 13:59

Brad Smith works for GHI Firm. GHI firm is a registered Broker-Dealer in State A, B and C and a registered IA in State A. Brad is a registered IAR in State A, and travels to State B because he wants to meet with some potential new clients in State B. Brad sets up an office in a hotel room, meets with the potential clients, and gives them advice about their portfolio.

[A] This is acceptable because the GHI Firm is registered as a B/D in State B.

[B] This is unacceptable because Brad is not registered in State B.

[C] This is acceptable because Brad does not have an office in State B.

[D] This is unacceptable because Brad is not an Agent.

+1

Answers (1)

Know the Answer?

Guzman · Answer 1

The correct answer is B. This is unacceptable because Brad is not registered in State B

Explanation:

Given:

Brad is a registered Investment Advisory Representative (IAR) in State A.

In the question, it's not stated that Brad is not registered in State B.

Setting up an office in State B is unacceptable because Brad is holding himself out as an IAR in State B and he is not registered as an IAR in State B.

Though GHI is a registered firm in State B, Brad also needs to be registered before setting up an office in other states.