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A per stirpes distribution divides an estate so that each branch of a family receives an equal share. If a primary beneficiary is deceased, that beneficiary’s share is passed down to their descendants by representation. For example, if a parent leaves an estate to their children per stirpes, each child receives an equal share. However, if one of the children has passed away, the deceased child’s share is divided among their own children (the grandchildren of the estate holder), ensuring the deceased child’s branch of the family still receives an inheritance.

A per capita distribution would distribute the estate equally among all living members of a group, such as children or grandchildren, and if a member is deceased, their share would not pass down to their descendants but instead be reallocated among the remaining living beneficiaries.

Under the Securities Act of 1933, civil liability applies to any individual or entity associated with a registration statement that includes an untrue statement or omits a material fact. Those potentially liable include any person who signed the registration statement, directors or partners of the issuer, accountants or other professionals who certified or prepared the statement, and all underwriters of the security. A purchaser who relied on this statement and was unaware of the misrepresentation may sue for damages, which can include the full purchase price, plus interest, minus any income received from the security.

Under the Uniform Securities Act (USA), an Administrator has the authority to issue a cease and desist order immediately if someone is engaging in or about to engage in a violation. The order is effective on the date of issuance and does not require a hearing to be issued initially. The order must specify whether the Administrator intends to seek a civil penalty or recover the costs of the investigation, and it must provide the reasons for the issuance. Additionally, if the person receiving the order requests a hearing in writing, a hearing must be scheduled within 15 days of that request.

"Selling dividends" is an unethical practice where an adviser or broker suggests that an investor buy shares right before a dividend or capital gain distribution. This tactic is misleading because it creates an unnecessary tax burden without any real financial benefit; the stock or mutual fund’s price drops by the amount of the distribution, resulting in no gain for the investor. Instead, it can lead to a tax liability on the dividend received. This practice is prohibited because it does not serve the best interests of the client.

Under the soft dollar arrangement guidelines, investment advisers may only use client assets to pay for certain services and products that provide direct benefit to client accounts, specifically those that aid in the investment decision-making process, such as research and market data services. However, expenses like conference attendance fees, travel, administrative costs, and subscriptions to general publications are not considered permissible soft dollar expenses because they do not directly contribute to investment research or portfolio management on behalf of the client. Thus, advisers must cover these costs themselves, not using client assets.

The Investment Advisers Act allows an exclusion from the definition of an investment adviser for lawyers, accountants, teachers, and engineers (often referred to as "LATE") if their investment advice is incidental to their primary professional services. However, this exclusion does not apply if a professional charges separately for investment advice or establishes a separate entity specifically to provide advisory services.

Form ADV is divided into multiple parts to gather information about the adviser’s business practices, background, and any disciplinary issues.

Part 1A is required for all advisers registering with either the SEC or state securities authorities, providing information about the firm, its business practices, ownership, and advisory personnel.
Part 1B is required only for advisers registering with state authorities (not SEC registrants) and includes additional disclosures required by states.
Part 2A requires advisers to provide clients with a narrative brochure detailing the advisory firm’s operations.
Part 2A-Appendix 1 is required specifically for advisers managing wrap fee programs.
Part 2B includes brochure supplements information on supervised persons who give investment advice.

Under the Uniform Securities Act (USA), broker-dealers, agents, and investment advisers are generally required to post a surety bond if they have custody of, or discretionary authority over, client funds or securities. However, if a broker-dealer’s net capital or an investment adviser’s financial condition exceeds specified minimum thresholds, they are exempt from the bonding requirement. Administrators may allow these professionals to post cash or securities instead of a bond. The surety bond must be maintained while the professional is in business and for three years after their registration ends.

The effective date of registration is significant because it indicates when a security is officially released for public distribution by the regulator. If there are other securities of the same class already issued and outstanding, the registration statement cannot be withdrawn within one year following the effective date. This restriction is in place unless the Administrator provides an exemption. Additionally, the Administrator may request quarterly reports to ensure the information remains current and to monitor the offering's progress.

The National Securities Markets Improvement Act of 1996 (NSMIA) was created to reduce regulatory duplication by establishing that certain securities and financial professionals already regulated at the federal level would not be subject to additional state registration. By enacting NSMIA, Congress intended to eliminate the overlapping requirements that could complicate the regulatory environment for both issuers and investors.