On a final review set, the question is presented in this context. The exam wants the best state-securities answer, not a practical business answer. David is a registered agent with Broker-Dealer Alpha. Without notifying Alpha, David opens a personal account at Broker-Dealer Beta and begins executing his own trades there. Under the USA, David has:

Why C — Violated the USA because he failed to provide written notice to his employing broker-dealer about the outside account

Under state securities regulations and NASAA model rules, a registered agent must provide written notice to their employing broker-dealer before opening accounts at other firms. Failing to disclose outside brokerage accounts violates the duty of disclosure owed to the employing firm, regardless of whether the trades are profitable or personal in nature. The exam trick is the framing, not the underlying Uniform Securities Act rule.