Question

an investment adviser has an office next door to a broker-dealer. the adviser directs all client transactions to the broker-dealer for execution and, in exchange, the broker-dealer rebates 10% of the commissions that it receives to the adviser. this practice is: a prohibited under the uniform securities act

Answer 1

The practice of an investment adviser receiving rebates from a broker-dealer is prohibited under the Uniform Securities Act.

Step-by-step explanation:

The subject of this question is Business and it pertains to the field of securities and investments. In this scenario, an investment adviser has an office next to a broker-dealer and directs all client transactions to the broker-dealer for execution. The broker-dealer then rebates 10% of the commissions received to the adviser.

However, this practice is prohibited under the Uniform Securities Act. The Act regulates and supervises the sale of securities and the brokers, dealers, and bankers who sell them. It ensures that transactions are conducted fairly, without any conflicts of interest or preferential treatment.