Series 65 Chapter 4

All of the following choices are maintained for five years by an IA, EXCEPT: 1. Partnership agreements 2. Articles of incorporation 3. A copy of audited financial statements Written complaints 4. A copy of a solicitor's written disclosure documents

1, 2

Under the Uniform Securities Act, an individual applying for an investment adviser representative registration may be required by the Administrator to: 1. Pass an examination 2. Pay a filing fee 3. Maintain a minimum net capital

1, 2

Which functions can a registered investment adviser representative perform? 1. Soliciting investment advisory services 2. Providing investment advice 3. Recommending asset allocation services 4. Supervising investment adviser representatives

1, 2, 3, and 4

According to NASAA Model Rule 502(c), regarding contents of investment advisory contracts, an advisory contract would include which of the following choices? 1. The term of the contract 2. An exculpatory clause waving compliance with the Investment Advisers Act of 1940 3. A nonassignment clause 4. A clause requiring the adviser to notify clients of any change in membership if the firm is a partnership

1, 3, and 4

Which of the following statements is/are TRUE of an investment adviser who takes custody of cash and securities belonging to its customers? 1. The funds must be deposited into one or more separate accounts that only contain customer funds. 2. The adviser may combine customer cash with its own if proper disclosure is made. 3. The adviser must also be registered as a broker-dealer with the Administrator. 4. The adviser must disclose to its clients both the location and manner in which the securities are held.

1, 4

An investment adviser has no place of business in State A. According to the Uniform Securities Act, in which TWO of the following situations is the firm required to register as an investment adviser in State A? 1. The firm only provides advice to accredited investors in State A. 2. The only client the firm has in State A is a pension fund. 3. Over the last 12 months, the firm has provided advice to 10 retail customers who are residents of State A. 4,. The firm is registered under the Investment Company Act of 1940.

1. 3

The Uniform Securities Act considers which of the following to be an investment adviser representative (IAR)? A. A CPA with an office in a state who charges a fee for advice that is more than just incidental to his profession B. A clerical employee of an advisory firm that has a place of business in the state C. A CPA who gives occasional advice in connection with his tax service, but charges no additional fees D. An officer or director of a federal covered adviser who has clients in a state, but has no office in that state

A. A CPA with an office in a state who charges a fee for advice that is more than just incidental to his profession

Under the Uniform Securities Act, an investment adviser who has no place of business in a state is exempt from registration if: A. All of the adviser's clients are institutional investors B. The adviser has no more than 15 clients who are residents of the state C. The adviser has no more than 10 clients who are residents of the state D. All of the adviser's clients were obtained on an unsolicited basis

A. All of the adviser's clients are institutional investors

According to the Uniform Securities Act, the term investment adviser includes all of the following types, EXCEPT: A. An accountant who advises his clients on how to minimize the tax consequences of the securities in their portfolio B. A financial planner who sells written financial plans covering insurance and securities purchases C. A person who sells security analyses D. A broker-dealer who charges for investment advice

A. An accountant who advises his clients on how to minimize the tax consequences of the securities in their portfolio

For disclosure purposes on Form ADV, a felony (as compared to a misdemeanor) is defined by all of the following choices, EXCEPT: A. An offense that's punishable by a fine of at least $500 B. An offense that's punishable by a prison sentence of at least one year C. A general court martial D. An offense that's punishable by a fine of at least $1,000

A. An offense that's punishable by a fine of at least $500

A new investment advisory firm registers with the Administrator on June 1. Just before its one- year anniversary on June 1 of the following year, the firm renews its registration and the registrations of each of its investment adviser representatives. Which of the following statements is TRUE? A. Both the firm's and its IARs' registrations lapsed on December 31 of the prior year B. The firm effectively renewed prior to the deadline, but the representatives did not C. The representatives are properly registered, but the firm's registration has lapsed D. The firm has complied with the Uniform Securities Act since registrations are valid for one year from the initial registration (June 1)

A. Both the firm's and its IARs' registrations lapsed on December 31 of the prior year

Under the NASAA Recordkeeping Requirements for Investment Advisers Model Rule, all electronic communications and their amendments must be maintained by the adviser for how long if distributed directly or indirectly and to how many persons? A. Five years if sent to two or more persons B. Three years if sent to two or more persons C. The life of the firm if sent to thirty-five or more persons D. Three years if sent to ten or more persons

A. Five years if sent to two or more persons

A firm is located in State Y and has been hired by a pension plan to evaluate its investment manager. The investment manager's office is in State Z. The firm will be advising the pension plan whether it should retain the investment manager or hire a new one. Under the Uniform Securities Act, is the firm required to register as an investment adviser in State Z? A. No, because the firm has no place of business in State Z and is servicing an institutional investor. B. No, because the firm is not making investment recommendations regarding the plan's portfolio. C. Yes, because the firm is advising the pension plan owner and not the participants. D. Yes, because a fee is being charged for the firm's services as a consultant.

A. No, because the firm has no place of business in State Z and is servicing an institutional investor.

You are the chief financial officer of Colfax Advisers, a registered investment adviser located in Dallas, Texas. Your firm manages portfolios and has safekeeping services for its clients. The state of Texas requires that all registered advisers who have custody of client assets maintain a minimum net worth of $35,000. In reviewing the month-end financials for the firm, you calculate the current net worth at $32,875. What would your best course of action be considering these circumstances? A. Notify the Administrator within one business day and file a statement of financial condition by the next business day B. Increase net worth to $35,000 and notify the Administrator of the increase C. Cease operations in the state and file a notice of withdrawal D. Notify the Administrator and post a $35,000 bond

A. Notify the Administrator within one business day and file a statement of financial condition by the next business day

An investment adviser has begun to experience difficulties in collecting fees from the accounts of clients that do not elect to have the fees deducted directly from their accounts. To compensate for this, the firm decides to raise its fees and require a larger up-front deposit from all new accounts for the upcoming year. To reward its current clients, the adviser waives the fee increase and does not change the terms of their contracts. What must the adviser do in this situation? A. The IA must make all necessary changes and promptly file amendments to its Form ADV B. The IA must make necessary changes to all of its disclosure documents and receive written consent from all of its current clients within 30 days C. The IA must notify all current clients of the new fees and update its Form ADV Part 2 within 60 days D. The IA must update its Form ADV Part 2 and any customer disclosure documents within 90 days of its year-end

A. The IA must make all necessary changes and promptly file amendments to its Form ADV

According to NASAA Model Rule 411(c), an investment adviser is required to keep a record of all the following documentation, EXCEPT: A. The IARs personal e-mails B. A ledger reflecting the return of third-party checks within three business days C. Statements of unpaid bills D. Written supervisory procedures

A. The IARs personal e-mails

All of the following would be reasons for a state Administrator to revoke an IA's registration, EXCEPT: A. The adviser filed for personal bankruptcy four years ago B. Discovery that the IA violated CFTC rules or regulations established by the Commodities Exchange Act C. Discovery that the adviser had violated the Investment Company Act of 1940 D. The adviser was subject to a misdemeanor conviction of securities fraud

A. The adviser filed for personal bankruptcy four years ago

An investment adviser provides a brochure to a new client on the same day that the client signs her advisory contract. Under the terms of the contract, the adviser gives the client a 48-hour period during which she may cancel the contract without a penalty. If the client cancels after the 48-hour period, the advisers will charge a reasonable advisory fee. Which of the following statements is TRUE regarding the adviser's contract with the client? A. The contract's provision violates the Brochure Rule. B. Since the advisory fee is reasonable, the contract is valid. C. The 48-hour cancellation policy complies with NASAA's Model Rule on Investment Advisory Contracts. D. The advisers contract is enforceable since it was provided to the client and she agreed to its terms.

A. The contract's provision violates the Brochure Rule.

The Administrator may require an investment adviser to file which of the following documents along with its initial A. The firm's current financial condition B. A list of all of its recommendations for the past five years C. A list of all customer securities and the location where they are held D. A list of all customers and their addresses

A. The firm's current financial condition

According to NASAA's model rules, which of the following is NOT required to be disclosed to a client when an investment adviser renews or extends its contract? A. The investment adviser's level of experience B. Any prepaid fees or penalties assessed to clients who elect to cancel the contract C. The formula used to calculate its investment advisory fee D. The length of the contract

A. The investment adviser's level of experience

According to the Uniform Securities Act, which of the following statements is NOT correct regarding an Administrator's authority over the books and records of an IA? A. The state securities Administrator may indicate the types of books and records that are required to be kept by an investment adviser that's registered with the SEC. B. The state securities Administrator is allowed to inspect the books and records of any investment adviser both inside and outside its state. C. The state securities Administrator may indicate the types of books and records that are required to be kept by an investment adviser in its principal place of business. D. The state securities Administrator may indicate the time periods for the preservation of books and records of investment advisers that have their principal place of business in the state.

A. The state securities Administrator may indicate the types of books and records that are required to be kept by an investment adviser that's registered with the SEC. (Since adviser is registered with SEC, does not need to follow record keeping rules of Administrator)

A newspaper writer in a small town has been writing articles on the forestry industry. Her work has included covering exchange-traded companies operating in the forestry industry. If the journalist is looking for other forms of income, which of the following activities would require registration as an investment adviser under the Uniform Securities Act? A. Writing monthly emails to subscribers that are unionized workers in the forestry industry and providing advice to them on the best time to exercise the stock options they received from their employing forestry company. B. Creating a publicly available blog that covers local politics. C. Writing a newsletter that's emailed to her friends which includes stories about general trends in the forestry industry. D. Taking a part-time position with the local newspaper as an editor of other journalists' stories.

A. Writing monthly emails to subscribers that are unionized workers in the forestry industry and providing advice to them on the best time to exercise the stock options they received from their employing forestry company.

Which of the following brochure delivery periods applies to investment advisers under the Uniform Securities Act? A. Clients must receive the adviser's brochure or ADV Part 2 at least 48 hours prior to signing a contract in order to rescind B. If an ADV or brochure is not provided at least 48 hours prior to signing the contract, clients must be given five days to rescind without penalty C. Clients must receive the adviser's brochure or ADV Part 2 five business days prior to signing a contract or the client has 48 hours to cancel without penalty D. If an ADV or brochure is not provided, clients must be given 10 days to rescind the contract

B. . If an ADV or brochure is not provided at least 48 hours prior to signing the contract, clients must be given five days to rescind without penalty

An IAR of a state-registered adviser is registered in State X, but gives seminars to potential clients in State C. The IAR is: A. Exempt from registration in State C B. Required to register in State C if he directs solicitations to more than five noninstitutional clients C, Required to register in State X only D. Exempt from registration in State C since he has no place of business there

B. . Required to register in State C if he directs solicitations to more than five

If information contained in any document filed with the Administrator is, or becomes inaccurate in any material respect, the registrant must file: A. Schedule I, within 90 days of the end of the registrant's fiscal year B. A correcting amendment, promptly C. An updating amendment, within 30 days D. Form ADV-W, within 60 days

B. A correcting amendment, promptly

Which of the following is NOT defined as an IAR? A. A person who gives advice and is employed by an investment adviser B. A person that manages portfolios and assets for its clients C. A person who manages IARs at an investment advisory firm D. A person who solicits new business for an investment adviser

B. A person that manages portfolios and assets for its clients

Which of the following individuals meets the definition of an investment adviser representative? A. An employee of an issuer that's offering securities to more than 10 individual investors in a 12-month period B. A person who indicates that she will create financial plans for a fee C. An employee of a broker-dealer who executes orders that are received for an investment adviser's managed accounts D. The human resources supervisor who's employed by a registered investment adviser (RIA)

B. A person who indicates that she will create financial plans for a fee

According to NASAA's Model Rule on IAR CE, when must an IAR complete her continuing education credits? A. Once every five years B. Annually C. Only if a regulatory action has been taken against the IAR D. Twice per year

B. Annually

Under the Uniform Securities Act, an investment adviser must deliver a disclosure document (brochure) to a client: A. With each statement, but at least on a quarterly basis B. At least 48 hours prior to signing the contract or, if given at the time that the contract is signed, the client must be given five days to rescind the contract C. Five business days prior to signing the contract, as long as the client has two business days to rescind the contract without penalty D. Within three business days of an existing client's request

B. At least 48 hours prior to signing the contract or, if given at the time that the contract is signed, the client must be given five days to rescind the contract

Schedule A of Form ADV is filed: A. By investment advisers at the end of every calendar year B. By investment advisers that are applying for their initial registration C. By broker-dealers when filing their annual renewal D. By investment adviser representatives when submitting their IAR CE credits

B. By investment advisers that are applying for their initial registration

Regarding the possession of funds held by investment advisers (IAs), which of the following is FALSE? A. Client notification must be made immediately regarding the location where the firm will hold the funds B. Client funds may only be held in an account that is established for that specific purpose C, Clients must receive a statement at least annually that discloses certain details of the funds held by the firm D. Client funds may be held by a qualified custodian that has met certain standards

B. Client funds may only be held in an account that is established for that specific purpose (they are instead sent quarterly, not annually)

Which of the following terms is not pertinent when determining whether a firm meets the investment adviser definition? A. Compensation B. Commission C. Business D. Advice

B. Commission

According to the NASAA Custody Requirements for Investment Advisers Model Rule, an investment adviser who wants to send account statements directly to clients: A. Is permitted to do so, if statements are sent on a monthly basis B. Is permitted to do so, if audited by an independent CPA C. Will be committing a violation D. Is permitted to do so, if approved by the Administrator

B. Is permitted to do so, if audited by an independent CPA

Which of the following statements is TRUE of an investment adviser that maintains custody of client funds and/or securities? A. It must complete Form ADV-NR. B. It must initiate Form ADV-E. C. It must complete Form ADV-W. D. It must arrange for an independent public account to audit these assets on a regular basis at least every three years.

B. It must initiate Form ADV-E.

Under which of the following circumstances will an individual be required to register with the Administrator as an investment adviser representative? A. She supervises the accounting department of a registered investment adviser B. She serves on a committee that makes investment decisions for an investment adviser's managed accounts C. She holds herself out as an investment adviser representative D. She solicits brokerage services

B. She serves on a committee that makes investment decisions for an investment adviser's managed accounts

An investment adviser is registered in 10 states. The firm wants to transact business with three clients in a state in which it is not registered. According to the Uniform Securities Act, which of the following statements is TRUE? A. The firm would be required to register in the new state if the clients were employee benefit plans with assets greater than $1,000,000 B. The firm would not be required to register as an investment adviser if it did not lease an office in the state in which it is not registered C. The firm would be required to register as an investment adviser with the SEC since it is now doing business in more than 10 states and is defined as a federal covered adviser D. The firm would be required to register in the new state if the clients were not accredited investors

B. The firm would not be required to register as an investment adviser if it did not lease an office in the state in which it is not registered

Under the Uniform Securities Act, which of the following advisers meets the definition of a federal covered adviser? A. An adviser who has a place of business in only two states B. An adviser whose recommendations are solely based on U.S. government securities C. An adviser who is registered with the SEC under the Investment Advisers Act of 1940 D. An adviser whose recommendations are solely based on exchange-traded securities

C. An adviser who is registered with the SEC under the Investment Advisers Act of 1940

Under the Uniform Securities Act, what information is NOT disclosed in an investment advisory contract? A. The manner in which the advisory fee will be computed B. A provision disallowing the investment adviser to assign the contract to another party without client consent C. Any other states in which the investment adviser is registered D. A provision prohibiting the investment adviser from being compensated based on a share of capital gains

C. Any other states in which the investment adviser is registered

According to NASAA provisions, an investment adviser that maintains custody of a client's funds must: A. Provide prior verbal notification to the Administrator of its intention to take custody of the client's funds B. Maintain a separate bank account in the adviser's name as agent/trustee for the client's benefit C. Arrange for an independent annual audit D. Notify the client of the location of the funds within 90 days of taking custody

C. Arrange for an independent annual audit

According to NASAA provisions, an investment adviser that maintains custody of a client's funds must: A. Notify the client of the location of the funds within 90 days of taking custody B. Provide prior verbal notification to the Administrator of its intention to take custody of the client's funds C. Be subject to a surprise audit by an independent accountant D. Notify the client of the location of the funds within 30 days of taking custody

C. Be subject to a surprise audit by an independent accountant

A semi-retired IAR works for an investment adviser that is located in State A, but she intends to spend the winter months in her second home in State B. The IAR put the addresses of both her office in State A and her home address in State B on her business cards since she intends to continue servicing her clients that reside in State A over the winter months. If the investment adviser does not have an office in State B, which of the following statements is TRUE? A. Neither the IAR nor the investment adviser need to be registered in State B since they are only doing business with clients whose residence is in State A. B. The IAR needs to register in State B, but the investment adviser does not. C. Both the IAR and the investment adviser need to be registered in State B since the IAR's residence in State B is considered an office and it is listed on her business card. D. The investment adviser needs to register in State B, but the IAR does not since neither she nor her clients are residents of the state.

C. Both the IAR and the investment adviser need to be registered in State B since the IAR's residence in State B is considered an office and it is listed on her business card.

Under the Uniform Securities Act, amendments to an investment adviser's Form ADV must be filed promptly. On August 31, an investment adviser closes one of its branch offices and must therefore file an amendment. What constitutes a prompt filing with the IARD? A. Filing the notice by October 31 of the current year B. Filing the notice by December 31 of the current year C. Filing the notice by September 30 of the current year D. Filing the notice by the end of the adviser's fiscal year.

C. Filing the notice by September 30 of the current year

An advisory firm has 30 individuals who are registered as IARs. What record is the investment adviser required to keep in regard to its IARs? A. The securities screening and background check for each IAR B. A copy of each IAR's fingerprints that have been obtained from law enforcement C. Form U4 for each IAR D. A copy of the driver's license or passport for each IAR

C. Form U4 for each IAR

According to the Uniform Securities Act, the Administrator may require federal covered advisers to: A. Do nothing because the Administrator has no jurisdiction B. Register in every state in which they have a branch office C. Give notice or notice file in any state where they transact business with six or more individual retail clients D. Register with the Administrator in any state where they transact business with six or more individual retail clients

C. Give notice or notice file in any state where they transact business with six or more individual retail clients

A state Administrator is permitted to apply all of the following administrative actions, EXCEPT: A. Order a broker-dealer to cease conducting business in the state. B. Suspend a broker-dealer's registration in the state. C. Require a higher minimum financial requirement than the state in which a broker-dealer maintains its principal office. D. Bar an agent from association with any other broker-dealer registered in the state.

C. Require a higher minimum financial requirement than the state in which a broker-dealer maintains its principal office

An investment adviser is registered in many states, including the state in which its principal place of business is located. Which of the following statements is TRUE concerning the IA's obligation to maintain a minimum financial requirement? A. The IA must satisfy the requirements of the state. B. The IA must satisfy the requirements of the SECA. C. The IA must satisfy the requirements of only the state in which its principal place of business is located. D. The IA must satisfy the requirements of the state in which it has the largest number of clients.

C. The IA must satisfy the requirements of only the state in which its principal place of business is located.

Under the Investment Advisers Act, which of the following forms must be filed if an investment adviser has custody of customer funds and securities? A. ADV-NR B. ADV-W C. ADV-H D. ADV-E

D. ADV-E

Under the Uniform Securities Act, an investment adviser must meet all of the following conditions in order to maintain custody of client assets, EXCEPT: A. Making sure all client cash and securities are segregated from the adviser's cash and securities B. Verifying client funds and securities at least once every calendar year in an unannounced audit by an independent accountant C. Sending each client an itemized statement of his or her account at least quarterly D. Also obtaining written discretionary authority from each client for whom it is holding funds and/or securities

D. Also obtaining written discretionary authority from each client for whom it is holding funds and/or securities

Which of the following would NOT be considered an investment adviser representative under the Uniform Securities Act? A. An individual who works for an investment adviser and manages assets B. An individual who works for an investment adviser and is compensated for transactional business C. An individual who works for an investment adviser and provides advice D. An individual who works for an investment adviser as a clerk or receptionist

D. An individual who works for an investment adviser as a clerk or receptionist

If an investment adviser makes material changes to its brochure, when does the adviser need to provide a summary of the changes to its clients? A. At the end of the current quarter B. A summary is not required to be provided C. At the end of the current month D. At the adviser's year-end registration renewal

D. At the adviser's year-end registration renewal

When is the latest time that a brochure can be provided to a new advisory client? A. 48 hours before the first securities order is placed in the client's account B. At the end of the adviser's fiscal year C. At the time of the first discretionary trade is made by the adviser on client's behalf D. Before the client signs the advisory contract which gives discretionary authority to the advisory firm

D. Before the client signs the advisory contract which gives discretionary authority to the advisory firm

Under NASAA's Model Rule on Brochure Rule Requirements, if an investment adviser provides a brochure at the time that a contract is signed, how long must a client be given to terminate the contract without penalty? A. 48 hours B. 12 months C. Two days D. Five days

D. Five days

Under the Uniform Securities Act, which of the following statements is TRUE regarding the registration of investment advisers (IAs) and investment adviser representatives (IARs)? A. IARs are not required to be registered in a state as long as the IA is registered there. B. IARs that are giving advice about exempt securities don't need to be registered even if the IA is required to be registered. C. IARs are required to register in a state even if the IA is provided an exemption from registration there. D. IARs are required to be registered in a state even if the IA is registered there.

D. IARs are required to be registered in a state even if the IA is registered there.

The term supervised person is BEST represented by an investment adviser representative who: A. Holds himself out as an investment adviser representative B. Manages an investment adviser's accounting department C. Is an employee of an issuer that offers registered securities to residents of only one state D. Is a partner of an investment adviser that manages investments in several discretionary accounts

D. Is a partner of an investment adviser that manages investments in several discretionary accounts

How long is an investment adviser (IA) required to keep the files of a client with whom it no longer does business? A. Not less than three years from the end of the fiscal year when in which the IA made the last entry B. Until the end of the IA's fiscal year when the client's contract expired C. Not less than two years from the end of the fiscal year in which the IA made the last entry D. Not less than five years from the end of the fiscal year in which the IA made the last entry

D. Not less than five years from the end of the fiscal year in which the IA made the last entry

An investment adviser is registered and located State A. One of the IAR's has three non-institutional clients and one institutional client in State B. A different IAR has four non-institutional clients in State B. If the investment adviser does NOT have an office in State B, who must register in that state? A. The IARs and the investment adviser B. Neither the IARs nor the investment adviser C. Only the IARs D. Only the investment adviser

D. Only the investment adviser

In the public's best interest, an Administrator may use all of the following actions as grounds for denial of an agent's application for registration, EXCEPT: A. She failed to disclose a six-month gap of employment on her Form U4 B. She sold unregistered, non-exempt securities in another state without acknowledgement from investors C. She violated federal commodities laws within the past 10 years D. She withdrew from registration as an agent in another state

D. She withdrew from registration as an agent in another state

According to NASAA's Model Rule on IAR continuing education (CE), how many credit hours of continuing education must an IAR complete each year? A. Six credit hours related to products and practices and zero credit hours related to ethics if the IAR is registered with FINRA. B. 10 credit hours of training on regulatory changes. C. Zero, if the IAR is also registered with FINRA as an associate member. D. Six credit hours related to products and practices and six credit hours related to regulatory and ethics (three of which must specifically cover ethics).

D. Six credit hours related to products and practices and six credit hours related to regulatory and ethics (three of which must specifically cover ethics).

Which of the following statements is FALSE regarding an investment adviser's contract? A. Contracts may not be assigned without customer consent B. Contracts may allow for an adviser to be compensated based on the value of the assets under management between designated dates C. If the investment adviser is a partnership, advisory clients must be notified of any change in partners D. The contract may stipulate that the adviser will receive a share of the gains and appreciation that are generated in the account as long as the time period is disclosed to the customer

D. The contract may stipulate that the adviser will receive a share of the gains and appreciation that are generated in the account as long as the time period is disclosed to the customer (performance based fees)

Under the Uniform Securities Act, an investment adviser is required to provide a balance sheet when it files Form ADV Part 2 in all of the following situations, EXCEPT when: A. The investment adviser has the authority to execute transactions in an account in which a client has beneficial interest. B. The investment adviser has custody over clients' funds and securities. C. The investment adviser requires prepayment of advisory fees of $800, seven months in advance. D. The investment adviser inadvertently received client securities, but returned them after two business days.

D. The investment adviser inadvertently received client securities, but returned them after two business days.

Under the Uniform Securities Act, which of the following persons is required to register as an investment adviser? A. A federal covered adviser B. An accountant who provides investment advice that is incidental to her tax practice C. A bank's trust department that provides fee-based investment advice D. The publisher of a financial periodical that responds to each subscriber with personalized investment advice

D. The publisher of a financial periodical that responds to each subscriber with personalized investment advice

Which of the following persons would be required to register as an investment adviser under the Uniform Securities Act? A. A bank's trust department that provides fee-based investment advice B. A federal covered adviser C. An accountant who provides investment advice that is incidental to her tax practice D. The publisher of a financial periodical that responds to each subscriber with personalized investment advice

D. The publisher of a financial periodical that responds to each subscriber with personalized investment advice

According to the recordkeeping requirements for IAs, if a client trade is executed, which of the following items is NOT required to be included on the order memorandum? A. The person who placed the order B. The person who recommended the transaction C. The date on which the order was entered D. The time that the order was executed

D. The time that the order was executed

If an adviser inadvertently receives client funds and/or securities, it can avoid the implication that it is maintaining custody of the assets by returning them to the sender within: A. Seven calendar days of receiving them B. Seven business days of receiving them C. Three calendar days of receiving them D. Three business days of receiving them

D. Three business days of receiving them

If information in an adviser's brochure becomes materially inaccurate, the adviser must file a(n): A. Annual amendment of Part 2 B. Updating amendment within 90 days C. Updating amendment within 120 days D. Updating amendment promptly

D. Updating amendment promptly

According to the Investment Advisers Act of 1940, when is an investment adviser required to provide an audited balance sheet to its clients? A. When the adviser has limited discretion over the account B. When the adviser requires the prepayment of a $500 initial advisory fee C. When the adviser requires the prepayment of a fee that is greater than $500, six months or more in advance of providing service D. When the adviser requires the prepayment of a fee that is greater than $1,200, six months or more in advance of providing service

D. When the adviser requires the prepayment of a fee that is greater than $1,200, six months or more in advance of providing service

Under NASAA's Mode Rule on Investment Adviser Representative Continuing Education Requirements, how many credits may be rolled over annually? A. Three B. Six C. 12 D. Zero

D. Zero

According to the Uniform Securities Act, if a firm has five or fewer clients in a state (during a 12-month period) in which it has no office, is it exempt from registration in the state?

Yes