Question

If a foreign broker-dealer that does not have U.S. based operations wishes to solicit customers in the United States, the broker-dealer:I. must establish an SEC-registered U.S. subsidiaryII. is not required to establish an SEC-registered U.S. subsidiaryIII. can effect its business through another registered U.S. broker-dealerIV. cannot effect its business through another registered U.S. broker-dealer

Answer 1

Answer: I. must establish an SEC-registered U.S. subsidiary.

III. can effect its business through another registered U.S. broker-dealer.

Explanation:

If a foreign broker-dealer that does not have U.S. based operations wishes to solicit customers in the United States, the broker-dealer must establish an SEC-registered U.S. subsidiary and can also effect its business through another registered U.S. broker-dealer.