Question

An investment adviser has 1 main office and 3 branch offices, all located in different States. Which statement is TRUE about recordkeeping requirement for the adviser under the Uniform Securities Act?

Answer 1

Answer:

The correct answer is The adviser must keep its records based on the rules of the State where its main office is located.

Explanation:

Branches manage resources independently of the Principal or Matrix. Of course, these resources are transferred by the Matrix and this is done by the respective Accounting Registry, this transfer representing an investment from the Principal to the Branch.

The branch has assets and liabilities, establishing its assets.

In the centralized accounting system, it is used when the volume of sales or operations does not represent a considerable volume that justifies having to open the use of another set of additional accounting records to which the company keeps. This means that the accounting is kept in the main office and the branch is limited to sending the accounting documents for the corresponding record.