Under the National Securities Markets Improvement Act of 1996 (NSMIA), investment companies registered under the Investment Company Act of 1940 are required to register:
A) as exempt securities, at neither state nor f
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Under the National Securities Markets Improvement Act of 1996 (NSMIA), investment companies registered under the Investment Company Act of 1940 are required to register:
A) as exempt securities, at neither state nor federal levels.
B) as securities at the federal level only.
C) as securities at the state level only.
D) as securities at both state and federal levels. Correct Answer: Answer: B
The NSMIA requires that the SEC, rather than individual states, assume responsibility for the registration and regulation of federal registered mutual funds and other investment companies. Thus, these federal registered investment companies are no longer required to register at the state level; however, they will likely have to pay state filing fees by going through the notice filing procedure.
In the event that a filing with the state securities Administrator is found to have material misstatements or omissions, a correcting amendment must be filed:
A) within seven business days of the discovery.
B) with the Administrator and the SEC Fraud Division within five business days of the discovery.
C) with a new consent to service of process.
D) promptly. Correct Answer: Answer: D
If a filing with the Administrator is found to have material misstatements or omissions, an amendment must be filed promptly with the office of the Administrator.
A closed-end investment company is registered under the Investment Company Act of 1940. Its shares trade on the Nasdaq Stock Market. To qualify their shares for sale in the state, they would probably use:
A) supplementation.
B) notice filing.
C) coordination.
D) qualification. Correct Answer: Answer: B
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