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Civil liability is imposed for violations such as selling unregistered, non-exempt securities or making misstatements of material fact. Market losses due to disclosed risks (B, C) are not violations. Profit guarantees (D) are unethical, but civil liability is triggered by the sale of non-compliant securities. Thus, A.

Soliciting retail clients in a state requires broker-dealer registration regardless of office location. Institutional and exempt security transactions (A, B) may be exempt. Correct: D.

Advisers with under $100 million AUM typically register at the state level. SEC registration is required at $110 million or more, with optional choice between $100–110 million. FINRA does not register advisers. Answer: B.

Guaranteeing investment returns is misleading and prohibited. Even Treasuries carry risks. Correct: B.

Using client funds for personal purposes is misappropriation and a direct breach of fiduciary duty. Disclosure (A), suitability (C), and proper records (D) reflect compliance. Correct: B.