Series 63 - Ch 3

The Uniform Securities Act would include all of the following in the definition of investment adviser except A. a broker-dealer who charges for investment advice. B. a publisher of a financial newspaper of general circulation. C. a person who sells security analysis. D. a CPA who, as an added service, suggests specific tax-free municipal bonds

B. a publisher of a financial newspaper of general circulation.

Under the Uniform Securities Act, all of the following may provide investment advice incidental to their normal business without having to register as an investment adviser except A. a teacher. B. an economist. C. a lawyer. D. an engineer.

B. an economist.

Under the Uniform Securities Act, which of the following requires registration as an investment adviser representative? A. An employee, highly skilled in evaluating securities, who performs administrative or clerical functions for an investment adviser B. An individual who renders fee-based advice on precious metals C. A solicitor for an investment advisory firm who is paid a fee for his services D. An agent of a broker-dealer who offers incidental advice on securities as part of his sales commissions

C. A solicitor for an investment advisory firm who is paid a fee for his services

Which of the following is not considered one of the three prongs making a person an investment adviser? A. Giving advice on securities B. Being in the business of giving advice C. Executing trades in recommended securities D. Receiving compensation for the advice rendered

C. Executing trades in recommended securities

If a prospective client wanted to know what type of investment strategies are used by an investment adviser, the desired information would be found in the adviser's A. Form ADV Part 1A. B. Form ADV Part 1B. C. Form ADV Part 2A. D. Form ADV Part 2B

C. Form ADV Part 2A.

Perfidy Trusted Advisers (PTA), is registered as an investment adviser in States A, B, and C. PTA's principal office is in State B. As such, PTA must meet the recordkeeping requirements of A. the state having the longest requirement. B. the state having the shortest requirement. C. State B. D. the SEC

C. State B.

Under the Uniform Securities Act, an investment adviser with no place of business in the state would be required to register if its only clients in the state are A. banks. B. insurance companies. C. six or fewer individual clients. D. closed-end investment companies

C. six or fewer individual clients.

Each of the following statements about post-registration provisions is true except A) investment advisers must comply with recordkeeping rules. B) a correcting amendment to the Form ADV must be filed with the Administrator if any information filed becomes inaccurate or incomplete. C) the securities Administrator does not have the authority to conduct an onsite examination of an investment adviser registered in his state if the adviser does not have an office in that state. D) a registered investment adviser may be required to file advertisements.

C) the securities Administrator does not have the authority to conduct an onsite examination of an investment adviser registered in his state if the adviser does not have an office in that state.

If a state-registered investment adviser moves to another location, the Administrator must be notified A) within 30 days. B) within 15 days. C) promptly. D) within 7 days.

C) promptly.

Under the Uniform Securities Act, the Administrator can require a federal covered investment adviser to A) maintain net worth in excess of that required by the SEC. B) file copies of the firm's advertisements. C) maintain books and records for a period of time in excess of SEC requirements. D) file a copy of all of the documents submitted to the SEC.

D) file a copy of all of the documents submitted to the SEC.

All of the following statements regarding the registration of an investment adviser in a state are true except A) the initial application must include a properly completed application form including a consent to service of process, an application for each investment adviser representative who will provide services on behalf of the investment adviser, and the appropriate fees. B) if the investment adviser is not an individual, any officer or partner active in the advisory business as an IAR is automatically registered as an investment adviser representative. C) the adviser's registration expires on December 31 each year. D) the annual renewal process involves payment of the appropriate fees and refiling of the consent to service of process.

D) the annual renewal process involves payment of the appropriate fees and refiling of the consent to service of process. The consent to service is a permanent document that remains on file with the Administrator; it need not be resubmitted for yearly renewal.

Under the Uniform Securities Act, any partner, officer, or director of a registered investment adviser is an investment adviser representative if she I. offers advice concerning securities II. manages client accounts or portfolios III. determines securities recommendations for representatives to disseminate IV. supervises personnel engaged in the above activities but does not sell these services to the public A. I only B. I and II C. I, II, and III D. I, II, III, and IV

D. I, II, III, and IV

Zack is an IAR with Unicorn Investment Advisers (UIA), an investment adviser registered in State W. Zack has accepted an employment offer from Elite Research Associates (ERA), an investment adviser also registered in State W. What are the notification requirements to the State W Administrator? A. Zack is the only person who notifies the Administrator B. UIA is the only person who notifies the Administrator C. ERA is the only person who notifies the Administrator D. UIA and ERA notify the Administrator

D. UIA and ERA notify the Administrator

Alyson Cooke is an investment adviser representative with a state-registered investment adviser. Cooke operates out of an office in State Y. She would be required to register in State Z if during the previous 12 months, she had A. fewer than six retail clients who were residents of State Z B. five or fewer retail clients who were residents of State Z C. no more than five retail clients who were residents of State Z D. six or fewer retail clients who were residents of State Z

D. six or fewer retail clients who were residents of State Z

A state-registered investment adviser would not qualify for the de minimis exemption if, over a 12-month period, it had A. five retail clients. B. five or fewer retail clients. C. fewer than six retail clients. D. six or fewer retail clients.

D. six or fewer retail clients.

If an investment adviser representative of a federal covered adviser that transacts business in a state terminates employment with that investment adviser, which of the following statements is true? A) The investment adviser must notify the Administrator. B) The representative must notify the Administrator. C) Both the representative and the investment adviser must notify the Administrator. D) No notice to the Administrator is required.

B) The representative must notify the Administrator. It is the investment adviser representative's responsibility to notify the Administrator. The advisory firm is not registered with the state; only the representative is registered.

Under the Uniform Securities Act, the executive office of the investment adviser—from which the officers, partners, or managers of the investment adviser direct, control, and coordinate the activities of the investment adviser—is properly referred to as A) the principal office and place of business. B) the registered office. C) the office of supervisory jurisdiction (OSJ). D) the home office.

A) the principal office and place of business.

In the absence of any other possible exemption, registration with the SEC would be prohibited for which of the following investment advisers? A. A pension consultant managing $150 million B. The investment adviser under contract to an open-end investment company with $18 million in assets C. An investment adviser whose assets under management are $103 million D. An investment adviser who would be required to register in 17 states

A. A pension consultant managing $150 million

Under the Uniform Securities Act, all of the following are required to be registered as investment adviser representatives except A) an individual who furnishes investment advice to clients of CB&G Advisers, Inc. B) CB&G Advisers, Inc. C) a vice president of CB&G Advisers, Inc., who serves on the firm's advisory committee. D) an employee who solicits new customers for CB&G Advisers, Inc.

B) CB&G Advisers, Inc. IAR not IA dummy

Which of the following situations would require registration as an investment adviser? I. A broker-dealer provides investment research services to a customer and charges a fee for the service. II. An agent of a broker-dealer recommends the purchase of ABC securities to a customer, who then purchases 100 shares, and the agent earns a commission. III. An agent of a broker-dealer prepares a complete financial plan for a customer with a one-time charge of $950. The plan recommends specific securities transactions, which the customer orders. The agent earns commissions on the securities transactions. IV. A broker-dealer charges its customers a fee for collecting dividends and account maintenance, in addition to commission charges for transactions executed. A) I, II, III, and IV B) I and III C) I and II D) I, III, and IV

B) I and III

An investment adviser representative may perform which of the following functions? Solicit for advisory business. Manage advisory accounts. Make specific securities recommendations. Supervise those who render advice. A) IV only B) I, II, III, and IV C) II and III D) I, II, and III

B) I, II, III, and IV

IAR falls under the definition if they do any of the following

- make recommendations or other advice about securities - manage accounts or portfolios of clients - determining which recommendation or advice ab securities should be given - soliciting, offfering, or negotiation the sale of advisroy services - supervising employees who perform any of the above

Exceptions under Dodd-Frank

- pension consultants with $200M under control - Companies with $100AUM but not yet $110 - IAs expecting to be eligble for SEC registration within 120 days of filing ADV

Release IA-1092 revised the Investment Advisors Act of 1940 to include anyone who

- provides investment advice, reports, or analyses with respect to securities - is in the business of providing advice or analyses - recieves compensation, directly or indirectly, for these services

Buffer

- $20M - Once they register with the SEC at $110M they have to stay above $90M hence the 20 buffer

De minimis expemtion

- Dont't have to register if they have 5 or less retail clients in a state in a 12mo period

Exclusions from the definition of IA which exempt them from registering

- IAR (bc thats the rep not the IA) - banks, savings institutions, trusts - LATE (lawyers, accountants, teachers, engineers who don't charge a seperate fee for securities advice) - a BD who offers advice in normal business and does not recieve additional/special compensation - publisher, ecmployee, columnist for a newspaper, radio or TV that is not released on regular basis (not market related time for a subscription fee) -Federal covered IAs registered with the SEC?? - Any other person the Admin specifies

What permits a small cap to register w SEC?

- If they are covered by Investment Act 1940 ex: mutual fund -Have to register in 15 or more states

Federal covered investment advisers register with the SEC and have

- Registered wi SEC bc of AUM of $110M - registered with SEC under contract to manage an investment co registered under the Investment Act of 1940 - Are not registered with the SEC bc they are excluded from the definition of an IA due to only advising U.S. treasury securities like FNMA and GNMA

Compensation for IA includes

- advisory fees - commision - other fees

IA-1092 now includes these professions as IAs

- financial planners - pensions consultants - sports and entertainment reps - other people who offer investment advice as part of a financial practice

what does it mean to be in the business of providing advice?

- give advice regularly and -advertise investment advisory services

Federal covered IAs will make a notice filing with the state if they

- have a place of business in that state OR - have 6 or more retail clients in that state in a 12mo period

Mid cap SEC registration

- if the IA isn't required to be registered as an IA with the state of its home office - if registered w SEC, the adviser wouldn't be subject to examination as an IA by the Admin - if register w 15+ states - If advier elects to take advantage of the buffer

IAs fill out Form ADV, part 1A includes

- location of prinicpal office - location of books n records - business org type (partnerhsip, corp, etc) - types of advisory provided - other business activites - custody of customer assets - officer, directors, control persons - disciplinary history - states the AI indends to or is already registered

Notice Filing excpetion is if the business

-doesn't have an office in that state - only clients in the state are investment companies, BDs, banks, insurance companies, employee benefit plans, gov. agencies

IA ABC test acronym

1. gives ADVISE 2. in the BUSINESS of advisinf 3 recieves COMPENSATION

To be an IA under both state and federal law they must

1. provide advice about securities 2. provide that advice as part of an oniong business on a regular basis 3. recieve compensation for the advice

If SEC registration is withdrawn, how many days do they have to register with the state?

180 days

Which part of ADV do Federally covered not have to fill out?

1B which is additoinal Qs to 1A

What is the retention rate for records of IAs

5 years

If the IA reaches $110AUM and needs to register w SEC, how many days do they have?

90 days

Form ADV must be updated each year through filing an amendment within

90 days after the end of the adviser's fiscal year

Under the Uniform Securities Act, which of the following qualifies as an investment adviser representative? A) A solicitor for an investment advisory firm who is paid a fee for his services B) An individual who renders fee-based advice on precious metals C) An employee who, although highly skilled in evaluating securities, solely performs administrative or clerical functions for an investment adviser D) An agent who offers incidental advice on securities as part of his sales commissions

A) A solicitor for an investment advisory firm who is paid a fee for his services metals aren't securities

An investment adviser would be exempt from registration under the Uniform Securities Act if it had no place of business in this state and its only clients were I. banks. II. insurance companies. III. registered investment companies. IV. other investment advisers. A) I, II, III, and IV B) I and II C) III and IV D) I, II, and III

A) I, II, III, and IV

Which of the following may be required by the Administrator to post surety bonds? I. An agent who has discretion over client funds and securities II. A broker-dealer who has custody of or discretion over, client funds and securities III. An investment adviser who has custody of or discretion over, client funds and securities A) I, II, and III B) III only C) I only D) I and III

A) I, II, and III

According to the Uniform Securities Act, which of the following is an investment adviser representative? I. A clerical employee of the AAA Investment Management Company, an investment advisory firm registered in the state that offers investment portfolio services to the public II. An employee of AAA Investment Management Company who is properly registered under the Uniform Securities Act and supervises analysts who provide research to clients III. An employee of a federal covered adviser with an office in the state who offers investment advice to institutions IV. An agent of a broker-dealer with strong investment opinions who sells securities only on a commission basis A) II and III B) III and IV C) I and IV D) I and II

A) II and III

Under the Uniform Securities Act, persons providing investment advice do not have to register as investment advisers if they have no place of business in the state and they I. limit their clientele to individuals who meet the accredited investor standards. II. deal only with institutional investors. III. have five or fewer noninstitutional clients in the state during any 12-month period. IV. deal only with other registered investment advisers. A) II, III, and IV B) III and IV only C) I, II, III, and IV D) II only

A) II, III, and IV

Which of the following statements is are true? I. A person with a place of business in the state who transacts business exclusively for the accounts of banks and savings institutions is not a broker-dealer under the Uniform Securities Act. II. A person excluded from the definition of investment adviser under the Investment Advisers Act of 1940 who offers investment advice to individual investors residing in this state, and has less than $100 million in assets under management, is subject to the jurisdiction of the state Administrator. III. A person required to register as an investment adviser under the Investment Advisers Act of 1940, who manages funds on a regular business headquartered in this state, may be subject to notice filing fees required by the state Administrator. IV. Broker-dealers who supply incidental investment advice and make securities recommendations to customers who pay commissions for the execution of their trades are not investment advisers subject to state or federal registration. A) III and IV B) I and II C) II and III D) I and IV

A) III and IV Under the NSMIA, any person excluded from the definition of investment adviser under the Investment Advisers Act of 1940 is considered a federal covered adviser. Therefore, regardless of the amount of money under management, the state has no jurisdiction. A federal covered adviser may be subject to payment of notice filing fees. Broker-dealers who supply investment advice incidental to their business and receive no special compensation for it are not IAs. A person who conducts business exclusively with banks and savings institutions is a BD under the USA if he has a place of business in the state. Had the person no place of business in the state and conducted business exclusively with banks and savings institutions, he would not be considered a BD subject to the regulatory control of the state Administrator.

An individual with a place of business in State A manages client assets on behalf of a covered investment adviser. This individual wishes to expand his client base by working one day per week out of the firm's office in State B. Which of the following actions must the person take to practice within that particular state? A) Pay state registration fees if required by the Administrator B) Pass an oral or written examination C) Become licensed as a broker-dealer D) Comply with the notice filing requirements of the state

A) Pay state registration fees if required by the Administrator *note its a covered advisor Individuals with a place of business in a state who manage client assets while employed by federal covered investment advisers, must register as investment adviser representatives in that state (or any others in which they, the IAR, maintain a place of business). Registration will generally involve paying the registration fees. Because this individual is already registered in State A, it is not necessary to pass another exam to become registered in another state. It is the IA who may be required to notice file with the Administrator.

State securities Administrators may require all of the following except A) minimum recordkeeping retention periods by registered investment adviser representatives. B) minimum net capital requirements on broker-dealers. C) bonding requirements for registered agents who exercise discretion in customer accounts. D) minimum net worth levels on investment advisers with custody of client funds and securities.

A) minimum recordkeeping retention periods by registered investment adviser representatives.

Sharika Williams is an investment adviser representative with High Tide Advisers, a federal covered investment adviser with its principal office in State X. Williams provides advisory services to a bank located in State X, a state in which she has no place of business. Under current regulations A. because Williams has no place of business in State X, she does not have to register as an IAR in State X B. because Williams' client is a bank, she does not have to register as an IAR in State X C. because Highwater's principal office is in State X, Williams would be required to register as an IAR in State X D. because Williams has a client in State X, registration as an IAR would be required in State Xunit3.indd 5817/08/21 11:34 AM

A. because Williams has no place of business in State X, she does not have to register as an IAR in State X - High Tide has the place of business, not Williams, therefore she doesn't have to regirster

Registration as an investment adviser would be required for any firm in the business of giving advice on the purchase of A. convertible bonds. B. gold coins. C. rare convertible automobiles. D. apartments undergoing a conversion to condominiums

A. convertible bonds.

Wealth Management Experts (WME) is an investment adviser registered in State X, the location of its only offices. During the past 12 months, WME has directed investment advice to six individual clients in State Y. This means that WME A. is required to register in State Y because it has exceeded the de minimis limit B. is not required to register in State Y because it is within the de minimis limit C. does not need to register in State Y if that state has a reciprocal licensing arrangement with State X D. would be required to register in State Y as soon as advice was directed to a single retail client

A. is required to register in State Y because it has exceeded the de minimis limit

Thomas Hobson is the founder and principal owner of Hobson Investment Strategies (HIS). HIS has its principal office in State A with branch offices in States B, C, and D. On its last annual updating amendment, HIS reported AUM of $300 million. HIS maintains custody of client assets. As a result, when it comes to meeting financial requirements, Hobson's choice would be adhering to those of A. the SEC. B. State A C. the state with the highest requirements. D. the state

A. the SEC.

Under the Uniform Securities Act, all of the following are excluded from the definition of an investment adviser except A) a federal covered adviser. B) an individual providing advice on municipal bonds. C) broker-dealers and their agents. D) banks.

B) an individual providing advice on municipal bonds. Providing advice on municipal bonds (even though they are exempt securities) does not entitle one to an investment adviser exclusion. Even though federal covered advisers are IAs, they are excluded from the definition under state law. Broker-dealers and agents are excluded as well unless something indicates they are receiving special compensation for advice.

A federal covered investment adviser is a person A) registered under the Uniform Securities Act. B) registered, or excluded from the definition of investment adviser, under the Investment Advisers Act of 1940. C) exempt from regulation under the Securities Exchange Act of 1934. D) registered with the North American Securities Administrators Association (NASAA).

B) registered, or excluded from the definition of investment adviser, under the Investment Advisers Act of 1940.

Which of the following securities professionals must be a natural person? I. an agent II. a broker-dealer III. an investment adviser IV. an investment adviser representative A. I and II B. I and IV C. II and III D. III and IV

B. I and IV

An investment adviser would be exempt from registration under the Uniform Securities Act if it had no place of business in the state and I. it offered their services to no more than five individuals in that state during any consecutive 12-month period. II. it offered their services to fewer than 15 individuals in that state during any consecutive 12-month period. III. its only clients were registered investment companies. IV. its only clients were broker-dealers and other investment advisers. A. I and III B. I, III, and IV C. II and III D. II and IV

B. I, III, and IV

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, A. Marjorie would be required to complete an application for IAR registration with State Z B. Marjorie would automatically be registered as an IAR in State Z C. Marjorie's registration as an IAR in State Z would become effective after passing the Series 65 or Series 66 exam D. Because DEF is a state-registered investment adviser, Marjorie could only register in State Z if she was a resident of the state

B. Marjorie would automatically be registered as an IAR in State Z

Mammon Money Managers (MMM) has its principal office in State A and is also registered in States B, C, and D. MMM exercises discretion in client accounts. As a result, MMM would have to meet the net worth or bonding requirements of A. the SEC. B. State A. C. the state with the highest requirement. D. each state

B. State A.

Under the Uniform Securities Act, the definition of investment adviser would include A. a bank B. a lawyer charging a fee to advise clients how to invest an injury settlement she just won for them C. an investment adviser representative D. none of the above

B. a lawyer charging a fee to advise clients how to invest an injury settlement she just won for them

With regard to state-registered investment advisers, all of the following statements regarding the powers of the Administrator are true except A. the Administrator may request submission of literature used by the adviser to solicit new business. B. the Administrator must be provided with a detailed description of the adviser's proposed method of selecting investments. C. an investment adviser's registration must be renewed each December 31. D. the Administrator may rule that custody of client funds is not permissible

B. the Administrator must be provided with a detailed description of the adviser's proposed method of selecting investments.

All of the following would meet the definition of investment adviser under the Uniform Securities Act except A. a broker-dealer charging separately for investment advice. B. the publisher of a weekly magazine, sold on newsstands, that contains at least five stock recommendations per issue. C. a civil damages attorney who advertises that he is available to assist clients by suggesting appropriate investments for their successful claims. D. a finance teacher at a local community college who offers weekend seminars on comprehensive financial planning at a very reasonable pric

B. the publisher of a weekly magazine, sold on newsstands, that contains at least five stock recommendations per issue.

If a rep leaves one firm to go to another who must notify the admin?

Both firms must notify the admin

Which of the following regarding the registration of investment advisers and their representatives is true? A) An investment adviser representative, terminated his employment with ABC Advisers 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. B) 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. C) ABC Advisers, Inc., is an investment advisory firm registered with the Administrator. Therefore, its representatives must notify the Administrator whenever there is a termination. D) XYZ Advisers, Inc., is a federal covered investment adviser registered with the SEC. Therefore, its representatives do not register with the Administrator.

C) ABC Advisers, Inc., is an investment advisory firm registered with the Administrator. Therefore, its representatives must notify the Administrator whenever there is a termination. A isn't right bc the federally covered doesn't need to notify only the state registered

Which of the following could be a reason for the Administrator to deny an applicant's registration as an investment adviser representative? A) The applicant is not a citizen of the United States of America or the Dominion of Canada. B) The applicant plans to exercise discretion but does not post a surety bond. C) The applicant is insolvent. D) The Administrator discovers that the applicant failed to note a 30-day driver's license suspension caused by excessive speeding tickets in a 12-month period.

C) The applicant is insolvent. One of the disqualifying conditions when applying for registration is insolvency, meaning that his liabilities exceed his assets, in the sense that he cannot meet his obligations as they mature. Agents will generally need to post a surety bond if they are exercising discretion, but there are no bonding requirements for IARs. Non-securities-related misdemeanors do not have to be included in the application. Although citizenship must be disclosed, there is no requirement that the applicant be a citizen of the U.S. or Canada.

What is in 2A?

Customer related content - compensation - types of clients - types of invesments - types of strategies - methods of analysis - consent to service of process -educational and business background of advisers - audited balance sheet

Foster Advisers, based in New Jersey, manages $135 million in funds for New Jersey-based clients. As a result of the Dodd-Frank Wall Street Reform and Consumer Protection Act, which of the following statements best describes the registration requirement for Foster Advisers? A) Foster Advisers is required to register with the Administrator of the New Jersey Department of Securities. B) Foster Advisers is required to register with both the SEC and the Administrator of the New Jersey Department of Securities. C) Foster Advisers is required to register as an adviser with the SEC and has no requirement to notify the Administrator of the New Jersey Department of Securities. D) Foster Advisers is required to register as an adviser with the SEC and notify the Administrator of the New Jersey Department of Securities of its operation.

D) Foster Advisers is required to register as an adviser with the SEC and notify the Administrator of the New Jersey Department of Securities of its operation.

Harrison, Certified Financial Planner (CFP), has an office in the state and a telephone directory listing under the category "Financial Planners." Harrison has, for fees, written more than 100 comprehensive financial plans for various individual clients. However, only 20% of the plans' content entails advice regarding securities and investments. Which of the following statements best describes Harrison's status as an investment adviser in the state under the Uniform Securities Act? A) Harrison is not required to register as an investment adviser because his securities advice is purely incidental to his overall planning activities. B) Harrison is required to register as an investment adviser because he holds a recognized financial planning credential. C) Harrison is not required to register as an investment adviser because he holds a recognized financial planning credential. D) Harrison is required to register as an investment adviser because he regularly offers advice and receives compensation for advice concerning securities and investments, and he holds himself out as a financial planner.

D) Harrison is required to register as an investment adviser because he regularly offers advice and receives compensation for advice concerning securities and investments, and he holds himself out as a financial planner.

An investment adviser representative may perform which of the following functions? I. Solicit for advisory business. II. Manage advisory accounts. III. Earn commissions on sales of recommended securities. IV. Supervise those who render advice. A) II and IV B) I, II, III, and IV C) II and III D) I, II, and IV

D) I, II, and IV An IAR may not earn commissions on the sale of securities unless also registered as an agent

Under current law, who of the following would be required to register as an investment adviser in a state? I A person who effects transactions exclusively with issuers of securities in that state while maintaining no office therein II. A person who has directed advice relating to securities to six individuals in that state within the past 12 months, even though he has no place of business within the state III. A person with an office in the state who manages less than $25 million in assets IV. A person who deals exclusively with broker-dealers in that state but maintains no place of business within the boundaries of the state A) III and IV B) I and IV C) I and II D) II and III

D) II and III Dont meet above $100M so gotta register w state

Under the NSMIA, the term federal covered adviser includes a person I. registered with the SEC under the Investment Advisers Act of 1940. II. registered as an investment adviser in two or more states. III. excluded from the definition of an investment adviser under the Investment Advisers Act of 1940. IV. required to register with the state Administrator. A) II and IV B) I and III C) I and IV D) II and III

D) II and III The NSMIA defines a federal covered adviser as a person who is either required to register with the SEC under the Investment Advisers Act of 1940 or who is specifically excluded from the definition of investment adviser under that act. Registration with the state Administrator is not required of a federal covered adviser.

Which of the following are not exempt from registration as an investment adviser representative in the state in which they maintain a place of business? I. A certified financial planner who prepares comprehensive financial plans and whose only compensation is commissions II. An insurance agent who prepares comprehensive financial plans and receives commissions on any insurance products purchased by his clients III. A broker-dealer with extensive business in the state IV. A mutual fund company with offices and clients in the state A) I and II B) I, II, III, and IV C) I only D) III and IV

I and II

If an IA is a federak covered adviser, the _________ must notify the admin of termination

IAR

IRAs are only allowed to give advice on securities not...

Rare coins, art, or real estate

Aum 110 sec or state

SEC

$25M-$99M - mid size

State registration

Less than $25M - small

State registration

How do they measure AUM for buffer and SEC registration?

With the IA's annual updating ammendment

If an IA meets the net worth surety bond in the state its office is located, is that sufficient enough for other registration w other states?

Yes

What is 2B?

brochure supplement that contains certain info about advisers including -educaiton background -disciplinary info -other business activities -additional compensation -supervision

$100M AUM SEC or state

either SEC or state

SEC Release IA-1092 added ________________________ to the list of potential IAs.

financial planners, pension consultants, and sports and entertainment representatives Unless the life insurance agent is offering investment advice, the agent does not meet the definition of investment adviser. The release did not address wrap fee programs because the exclusion for broker-dealers is part of the Investment Advisers Act of 1940; once special compensation in the form of wrap fees is received, the exclusion is lost.

If the IA is stte-registered, the _________ must notify admin of termination

firm

Agents register as a FINRA member with both the state and SEC, who do IRAs register with?

just the state

Would the publication of a general newsletter offering nonspecific investment advice have to register as an IA?

no

Are there financial requirements to register as an IAR?

no, but bankruptcy can be a cause for denial or revocation

Do IARs register with the SEC?

no, only with the states

When an individual can be both the IA and IAR they have a

sole proprietrship

What is in Form 3?

the client relationship survey

If emplyeed or associated with a federal covered, what rule makes someone an IAR?

they have a place of business in the state, NOT the states where their clients reside