Series 65 - Unit 10 Quiz #2

An investment adviser hires two individuals to solicit new customers for the firm's wealth management service. Under the Uniform Securities Act, A) registration as investment adviser representatives is required. B) they may begin soliciting as soon as they have passed their licensing examinations. C) each of them would have to register as an investment adviser. D) soliciting is generally prohibited.

A.

Under the Uniform Securities Act, which of the following statements regarding the consent to service of process is not true? A) Only applicants whose principal office is in another state need to file a consent to service of process. B) A consent to service of process does not need to be supplied each time a registrant's registration is renewed. C) Investment advisers and investment adviser representatives must file a consent to service of process to become registered. D) A consent to service of process makes legal process served on the Administrator legally binding as process served on the registrant personally.

A.

While enjoying some après-ski after a long day vacationing out of state on the slopes, Gervaise, an investment adviser representative with a federal covered investment adviser, spots several existing advisory customers. They invite Gervaise to join them for some spirits, and the invitation is warmly accepted. After about an hour, some of these customers and their friends ask Gervaise if it would be possible to have a lesson on what specific stocks should be considered under current market conditions. To make this presentation, Gervaise A does not have to be registered in the state because, as a representative of a covered adviser, registration is required only in those states where a place of business is maintained. B does not have to be registered in the state as long as the only participants are the existing customers without their friends.

B.

As written in the Investment Advisers Act of 1940, a "person associated with an investment adviser" is any partner, officer, or director of such investment adviser (or any person performing similar functions), or any person directly or indirectly controlling or controlled by such investment adviser, including any employee of such investment adviser. Persons associated with an investment adviser whose functions are clerical or ministerial are not included in this definition. Based on that definition, all of the following would be associated persons ​except​ A) a silent partner in an advisory firm organized as a general partnership. B) a senior officer of an investment adviser responsible for marketing the adviser's services as opposed to making investment advisory decisions. C) an employee of the firm with a degree in communications whose job is the graphic design of the investment adviser's research publications

C.

Under the Uniform Securities Act, which of the following is not an investment adviser representative? A) A vice president of a state-registered investment advisory firm who supervises employees who solicit clients for the firm B) A natural person representing an SEC-registered investment advisory firm who has a place of business in the state and manages the account of a single client C) A clerk employed by a state-registered investment advisory firm D) A director in a state-registered investment advisory firm who determines specific recommendations for clients

C.

Washington, Adams, and Jefferson, Inc., (WAJI) is an investment adviser whose principal and only office is in Alexandria, VA. WAJI's sole business is advising institutional investors. Rutherford Buchanan is employed by the firm in the main office and has the responsibility of servicing the firm's bank and insurance company clients. Which of the following statements is correct regarding Rutherford's licensing requirements? A) Rutherford cannot register as an IAR of WAJI because providing advice exclusively to institutions exempts the firm from registration. B) Rutherford is exempt from registration because he has fewer than six retail clients. C) Rutherford is exempt from registration because his only clients are institutions. D) Rutherford must register as an IAR of WAJI with the State of Virginia.

D.