Unit 6 Review
It is necessary to indicate how long the investment system has been used or its performance history.
false
T/F? A broker-dealer creating an approved list of securities is both unethical and prohibited
false
T/F? A state-registered investment adviser would be permitted to use Part 1 of the Form ADV to satisfy the brochure requirement
false
T/F? Advisory fees are not regulated for sophisticated clients.
false
T/F? Advisory fees may be any amount, provided the client has agreed in writing to the fees, and disclosure has been made that the fees may be much higher than those charged by other advisers for the same service.
false
T/F? Advisory fees must bear a relationship to the amount of time the adviser devotes to the client's account.
false
T/F? Agency cross transactions are not permitted under any circumstance
false
T/F? Agency cross transactions, where the adviser represents both sides of the trade, are permitted as long as the adviser makes the proper written disclosures and can make recommendations to buy or sell to both parties
false
T/F? Margin fees can be charged on a cash account
false
T/F? Of the 3 primary expenses involved with brokerage accounts that are not included in the fee disclosure template, one of them is markups and markdowns on trades done as a principal
false
T/F? Part 1, but not Part 2, of the Form ADV may be used in lieu of a fancy brochure.
false
T/F? References to charts, tables, formulas, or other devices used to forecast securities prices without setting forth difficulties or limitations in their use is allowed
false
T/F? T/F? Only managing partner changes to the ownership of an investment advisor firm organized as a partnership would require notification to the client.
false
T/F? T/F? The Investment Adviser's brochure is Form ADV Part 2B
false
T/F? T/F? the majority stockholder of a registered investment adviser pledging his stock as collateral for a loan taken out by the firm to expand its services would not require consent from clients
false
T/F? The brochure must be delivered to a new client no later than the 3 days before the entry of the contract
false
T/F? The nature of any control relationship or conflict of interest must be disclosed to customers, except in exempt transactions
false
T/F? The phrase "approved" can be used with reference to a regulator commenting on the status of a security or an individual
false
T/F? Third-party solicitors do not need to provide a copy of the investment adviser's brochure (Form ADV Part 2A)
false
T/F? Under the USA, the term guaranteed can refer to capital gains
false
T/F? both the SEC and the customer receives a copy of the Form ADV Part 1
false
It is not necessary to indicate how long the investment system has been used or its performance history.
true
T/F? A broker-dealer creating an approved list of securities is not unethical or prohibited
true
T/F? A state-registered investment adviser would be permitted to use Part 2 of the Form ADV to satisfy the brochure requirement
true
T/F? Advisory fees may be considered unreasonable if they are not comparable to fees charged by other advisers for the same advisory services.
true
T/F? Agency cross transactions, where the adviser represents both sides of the trade, are permitted as long as the adviser makes the proper written disclosures and only makes the recommendation to buy or sell to one of the parties, not both.
true
T/F? Any change in the ownership of an investment advisory firm organized as a partnership, no matter how small, requires notification to all clients within a reasonable amount of time.
true
T/F? Margin fees can be charged on a margin account
true
T/F? Of the 3 primary expenses involved with brokerage accounts that are not included in the fee disclosure template, one of them is advisory fees
true
T/F? Of the 3 primary expenses involved with brokerage accounts that are not included in the fee disclosure template, one of them is commissions
true
T/F? Of the 3 primary expenses involved with brokerage accounts that are not included in the fee disclosure template, one of them is markups and markdowns
true
T/F? Part 2, but not Part 1, of the Form ADV may be used in lieu of a fancy brochure.
true
T/F? References to charts, tables, formulas, or other devices used to forecast securities prices without setting forth difficulties or limitations in their use is prohibited
true
T/F? The Investment Adviser's brochure is Form ADV Part 2A
true
T/F? The brochure must be delivered to a new client no later than the entry of the contract
true
T/F? The nature of any control relationship or conflict of interest must be disclosed to customers, regardless of the capacity in which the firm acted or the type of transaction made.
true
T/F? The phrase "approved" can never be used with reference to any regulator commenting on the status of a security or an individual
true
T/F? Third-party solicitors must provide a copy of the investment adviser's brochure (Form ADV Part 2A)
true
T/F? Under the USA, the term guaranteed can refer to dividends
true
T/F? Under the USA, the term guaranteed can refer to interest
true
T/F? Under the USA, the term guaranteed can refer to principal
true
T/F? only the SEC receives a copy of the Form ADV Part 1
true
T/F? the majority stockholder of a registered investment adviser pledging his stock as collateral for a loan taken out by the firm to expand its services would require consent from clients
true
