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  • Exam Code: CCRA-L1
  • Exam Name: Certified Credit Research Analyst Level 1
  • Version: V14.35
  • Q & A: 163 Questions and Answers

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NEW QUESTION: 1
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. Yes. It is a violation of a securities law to suggest that he has been approved by the state
Administrator.
B. No. However, he may be violating company policy of the broker-dealer he works for by designing his
own cards.
C. No. His registration with the Administrator of the state has been accepted, so he is entitled to call
himself a "State-Approved Agent."
D. Yes. Agents are not permitted to include a picture of themselves on their business cards.
Answer: A
Explanation:
Yes, Ari will be violating a securities law if he distributes the business cards because the
cards suggest he has been approved by the state Administrator. The Uniform Securities Act specifically
states that the effective registration of a person does not mean that the Administrator has "given approval
to" that person. Any statement to this effect is considered an unlawful representation.

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