Unit 10 Practice Questions
Which of the following regarding the registration of investment advisers and their representatives is true? A) ABC Advisers, Inc., registered with the Administrator, employs an investment adviser representative who left the employment of another investment advisory firm six months ago. ABC must notify the Administrator of this association promptly. B) ABC Advisers, Inc., is an investment advisory firm registered with the Administrator; therefore, its representatives need not be registered with the Administrator. C) An investment adviser representative terminated his employment with ABC Advisers, Inc., a state-registered investment adviser and, six months later, was employed as an advisory representative by KLM, a federal covered adviser. Each firm is required to notify the Administrator of each event. D) XYZ Advisers, Inc., is a federal covered investment advisory firm registered with the SEC; therefore, its represen
A) ABC Advisers, Inc., registered with the Administrator, employs an investment adviser representative who left the employment of another investment advisory firm six months ago. ABC must notify the Administrator of this association promptly.
Under the Uniform Securities Act, all of the following are required to be registered as investment adviser representatives except ABD Advisers, Inc. an employee who solicits new customers for ABD Advisers, Inc. an individual who furnishes investment advice to clients of ABD Advisers, Inc. a vice president of ABD Advisers, Inc., who serves on the firm's advisory committee.
ABD Advisers, Inc.
Delta Advisers is registered in Alabama, Mississippi, and Louisiana. Billy Joe works for Delta Advisers rendering investment advice to individual clients. He works out of Delta's Jackson, MS office and has 3 clients in Mississippi, 6 clients in Alabama and 4 in Louisiana. Billy's friend, Bobby Ray, works for Biloxi Investments, a federal covered adviser with offices in several cities in Mississippi. Bobby Ray works out of the Tupelo, MS office and has 45 retail clients in Tennessee, 4 in Georgia, and 6 in Alabama. With regards to registration as an IAR, which of the following statements is TRUE?
Billy Joe must register in MS and AL and Bobby Ray must register in MS.
Kapco Advisers registers with the Administrator on April 1. Pete Patel, an IAR with Kapco, registers on the same day. Both of them file renewal papers, accompanied by the appropriate fees, on March 31 of the following year. Which of the following statements are true? Kapco's renewal was timely. Kapco's renewal was late. Patel's renewal was timely. Patel's renewal was late.
Both late
Under the Uniform Securities Act, which of the following statements regarding the consent to service of process is not true? Only applicants whose principal office is in another state need to file a consent to service of process. A consent to service of process does not need to be supplied each time a registrant's registration is renewed. A consent to service of process makes legal process served on the Administrator legally binding as process served on the registrant personally. Investment advisers and investment adviser representatives must file a consent to service of process to become registered.
Only applicants whose principal office is in another state need to file a consent to service of process.
An individual who is employed by or associated with an investment adviser (IA) that is registered or required to be registered under the Uniform Securities Act or who has a place of business in this state and is employed by or associated with a federal covered adviser and whose only role is to solicit, offer, or negotiate for the sale of or sell investment advisory services would be considered
an investment adviser representative and required to register as such.
Adnan is an investment adviser representative associated with a state-registered investment adviser. He is registered in several states. To be in compliance with the Uniform Securities Act, Adnan
as no financial requirements with regard to a minimum net worth.
When an investment adviser representative terminates employment with a federal covered investment adviser and then registers with a different federal covered investment adviser in the state where the individual has an office,
only the investment adviser representative must notify the Administrator promptly.
Greater Wealth Managers (GWM) is an investment adviser registered in States A, B, C, and D. An individual was recently hired to solicit new advisory accounts for the firm. This person will not be engaged in giving advice of any kind, and all activities will be closely supervised by senior personnel of the firm. Under Section 201 of the Uniform Securities Act,
registration as an investment adviser representative is required for this individual.
DEF Investment Advisers, organized as a partnership, is currently registered with State Y. Marjorie is one of the partners and is registered as an IAR. If DEF were to register with State Z,
she would be automatically registered as in IAR in State Z
Jay is an investment adviser representative with a state-registered investment adviser. Jay operates out of an office in State Y. He would be required to register in State Z if, during the previous 12 months, he had
six or fewer retail clients who were residents of State Z.
Esther Watson has recently been hired by Robinson, Ibbotson, Carlson, and Hanson (RICH), an investment adviser registered with the SEC. RICH has offices in 17 states and Esther works in the branch located in State A. If no exemption is available, Esther will have to register as an IAR with
the Administrator of State A.
An individual who has passed the NASAA examination for registration as an investment adviser representative may begin soliciting advisory clients
when informed by the investment adviser that the representative's registration is effective.
