Which of the following represents a true statement concerning licensing and registration of registered representatives and investment adviser representatives?
A. passing a license exam constitutes the attainment of a license to sell securities or investment advice
B. upon passing a license exam a candidate is licensed subject to being granted a registration by the state
C. agents register with the SEC; investment adviser representatives register with FINRA
D. a conviction of misdemeanor theft does not need to be disclosed on Form ADV after 10 years
EXPLANATION: I wrote this question after receiving an email this morning from a customer studying the Series 65. He asked, "After getting a license do I need to register as an RIA?" In other words, he mistakenly thought that passing the exam = getting a license. And, he didn't realize that "license" and "registration" are two words for the same thing. Some states call it a "license," others call it a "registration." either way, passing an exam only allows you to APPLY for a license. Will you get one? Probably not if you have misdemeanor theft convictions in the previous 10 years. Believe it or not, Form ADV only goes back 10 years, while U-4 asks if you have EVER been convicted of securities-related misdemeanors or any felonies. Agents register with FINRA; IARs register with the state Administrator(s).