Series 65 Unit 1

Question ID: 1177507 The Uniform Securities Act provides an exemption from registration as an investment adviser for which of the following persons who have no place of business in the state? Advisers who deal exclusively with broker-dealers Advisers who deal exclusively with insurance companies Advisers who deal exclusively with investment companies Advisers who have no more than 5 clients in that state in a 12-month period

) I, II, III, and IV

Which of the following statements concerning conflicts of interest under NASAA's Model Rule on Unethical Business Practices of Investment Advisers, Investment Adviser Representatives, and Federal Covered Advisers are TRUE? 1Where a conflict of interest exists, an adviser must decline taking on the client. 11A conflict of interest is defined as anything that may impair the impartiality of the advice being rendered. 111An investment adviser who receives a fee for investment advice, and whose investment adviser representatives are paid commissions from broker-dealers, presents a conflict of interest that must be disclosed.

11 and 111

Under the Uniform Securities Act, an investment adviser is exempt from registration if he has no place of business in a state and his only clients are any of these EXCEPT A) individuals meeting the accredited investor standard B) other investment advisers C) investment companies D) broker-dealers

A

When, if ever, would a broker-dealer be required to register as an investment adviser? A) If it charges distinct fees for investment advice or management B) Never C) If it is not registered with the SEC D) Always

A

Dodd Frank has to do with

AUM

Under the Uniform Securities Act, which of the following investment advisers with no place of business in the state must register with the state as an investment adviser?

An adviser rendering advice to no more than 10 individual clients within a 12-month period (tricky but this is it because its more than 5)

Although many advisers to private funds are exempt from registration, larger ones generally register with the SEC. SEC-registered investment advisers with at least $150 million in private fund assets under management use which form to report information about the private funds that they manage? A) Form ADV Part 1A B) Form PF C) Form 13F D) Form D

B

The term exempt reporting adviser refers to A) advisers whose only clients are insurance companies B) advisers that rely on either the venture capital fund adviser exemption or the private fund adviser exemption C) advisers who are registered on the state level, but who file their Form ADVs through the IARD D) broker-dealers who are considered investment advisers solely because they offer wrap fee accounts

B

ABC Advisers, a federal covered investment adviser, is moving the firm's headquarters to a new office park in the suburbs. ABC is required to file this change with the SEC A) within 60 days B) within 30 days C) promptly D) within 90 days

C

The document that gives the Administrator the right to process complaints against a registrant is known as A) a writ of habeas corpus B) a durable power of attorney C) a consent to service of process D) an injunction

C

The primary responsibility for supervising the activities of an investment adviser representative who is affiliated with a federal covered investment adviser lies with A) the investment adviser representative B) the SEC C) the investment adviser the IAR represents D) the Administrator

C

Under the Investment Advisers Act of 1940, which of the following would be excluded from the definition of an investment adviser? A) A broker-dealer that managed clients' portfolios for a fee B) The publisher of an investment advisory newsletter that plans issues based on market events C) A bank that charged a fee for providing investment advice D) An individual who made recommendations regarding which types of securities would meet a client's investment objectives but who did not recommend specific securities

C. banks usually always excluded

Which of the following individuals does not come under the supervisory regimen of an investment adviser? A) A financial planner registered with the firm as an IAR, but maintaining a separate financial planning practice as an independent contractor B) An individual in the mailroom who has fewer than 6 retail advisory clients C) The CPA engaged to perform the annual audit D) A CFA® preparing the firm's research reports

C. because the CPA has to be by an independent accountant

Question ID: 1177606 Kapco Investment Advisers currently has $18 million in assets under management and has offices in Colorado and Utah. Kapco's only clients in Utah are two insurance companies domiciled in that state. Kapco has no office in Washington but does service the accounts of three middle-class individuals. Kapco has recently opened an advisory account for a pension plan for a corporation located in Montana. Under the Uniform Securities Act, Kapco would have to register with the Administrator in the state of

Colorado and Utah. bc it has under 100 mill in assets so not federal covered. so it must register in each state it has an office

Out-of-state investment advisers with no office in this state are not required to be registered if only advising A) on stocks listed on the NYSE B) on growth issues C) on preferred stock D) insurance companies

D

States may require investment advisers who are registered with the SEC to do each of the following EXCEP A) pay state notice filing fees B) file any documents with the state that are filed with the SEC C) file a consent to service of process D) maintain net capital requirements

D

Under the Uniform Securities Act, which of the following statements is TRUE regarding registration of an investment adviser if the application has not been amended? A) Unless specified earlier, registration becomes effective no sooner than 15 days after the application is filed. B) Unless specified earlier, registration becomes effective no later than 90 days after the application is filed. C) Unless specified earlier by the Administrator, the registration becomes effective at noon on the 60th day after application. D) Unless specified earlier by the Administrator, the registration becomes effective no later than noon on the 30th day after application.

D

Question ID: 1181053 With respect to the recordkeeping rules under the USA, which of the following statements is NOT correct? A) Broker-dealers must maintain records of trade blotters for a minimum of 3 years. B) Investment advisers must maintain copies of all powers of attorney and other evidences of the granting of any discretionary authority by any client to the adviser for a minimum of 5 years. C) Broker-dealers must maintain records of electronic communications for a minimum of 3 years. D) Following termination of the business, investment advisers organized as corporations must maintain copies of their articles of incorporation for a minimum of 5 years.

D only 3 years

Kapco Advisers, a federal covered investment adviser operating on a calendar-year basis, published a list of recommended securities in January 2015. A copy of this must be maintained until at least

December 31, 2020

In which of the following cases would the Uniform Securities Act require registration of an investment adviser who had no place of business in the state?

He had more than 5 noninstitutional clients who were residents of the state.

Which of the following is (are) required to register with a state Administrator?

Investment adviser representatives of federal registered advisers who have natural person clients and have a place of business in the state

Registration with the SEC as an investment adviser would be required for a person who

acts as the investment adviser to an investment company registered under the Investment Company Act of 1940

Under the Investment Advisers Act of 1940, the records that must be maintained by an investment adviser may be kept in which of the following forms?

anyone hard copy, microfilm, computer disk

Leslie is an IAR with Financial Visions (FV), a federal covered investment adviser. Leslie operates Innovative Financial Solutions (IFS), a separate financial planning company with its own office in State W. Should Leslie be found guilty of fraudulent business activities, FV would

be subject to possible disciplinary action brought by the State W Administrator if it could be shown that FV failed to supervise Leslie's activities.

A federal covered investment adviser registered with the SEC that has offices in 5 states must do which of the following? i Pay state filing fees if required by the Administrator ii Notify the Administrator within 1 business day if net worth falls below the required minimum iii Notice file in any of those states where required by the Administrator iv Become licensed as a broker-dealer

i and iii. Although exempt from state registration, federal registered investment advisers must notice file and pay state filing fees (if required by the Administrator) to practice within a given stat

Under the Uniform Securities Act, which of the following are excluded from the definition of investment adviser, provided the advice is incidental to their profession? i Bankers ii Lawyers iii Broker-dealers iv Teachers

ii and iv

A person who renders investment advice solely with respect to securities issued by the U.S. government

is excluded from the definition of investment adviser under federal law and is, therefore, exempt from state registration requirement