Series 66 Chapter 2

Registration of an investment adviser automatically confers registration on officers, partners, and directors of the firm who are functioning as IARs any employee who is functioning as an IAR clerical employees handling back-office operations an employee who will be soliciting clients for the adviser

1 only

The registration of an investment adviser would automatically register which of the following as investment adviser representatives? Directors Officers Partners

1, 2, 3

Under the Uniform Securities Act, any partner, officer, or director of a registered investment adviser is an investment adviser representative if that individual does which of the following? Offers advice concerning securities Manages client accounts or portfolios Determines securities recommendations for representatives to disseminate Supervises personnel engaged in the above activities but does not sell these services to the public

1, 2, 3, 4

Which of the following persons are required to register in a particular state? An investment adviser who manages client accounts in excess of $100 million in value An investment adviser who manages client accounts and has less than $25 million in total assets under management An adviser to investment companies registered under the Investment Company Act of 1940 An investment adviser representative with a place of business in the state

2 + 4 With certain exceptions not mentioned in the choices, under the Dodd-Frank Wall Street Reform and Consumer Protection Act, advisers who manage clients with a total of less than $100 million under management are required to register with the state Administrator. Under Dodd-Frank, those who advise registered investment companies are required to register with the SEC and are exempt from state registration. Those who manage at least $100 million, but not $110 million, have the choice of registering with either the state or the SEC. Investment adviser representatives with a place of business in the state register with the state. It makes no difference if they represent a federal coverered or a state-registered investment adviser.

The term "investment adviser representative" includes which of the following? A receptionist for an adviser An employee who solicits new business for an adviser A supervisor who oversees employees who manage client portfolios for an adviser An investment advisory firm registered in the state of Texas

2, 3

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 representative must notify the Administrator. B) No notice to the Administrator is required. C) The investment adviser must notify the Administrator. D) Both the representative and the investment adviser must notify the Administrator.

A

Under the Uniform Securities Act, which of the following is NOT an investment adviser representative? A) A clerk employed by a state-registered investment advisory firm B) A vice president of a state-registered investment advisory firm who supervises employees who solicit clients for the firm C) A director in a state-registered investment advisory firm who determines specific recommendations for clients D) 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

A

An individual employed by or associated with an investment adviser that is registered or required to be registered under the Uniform Securities Act, or who has a place of business in this state and is employed by or associated with a federal covered adviser and whose only role is to solicit, offer, or negotiate for the sale of or sell investment advisory services would be considered A) a solicitor and required to register as an IA B) a solicitor and required to register as an IAR C) an administrative employee exempt from registration D) an IAR only if soliciting noninstitutional clients

B

To transact business in a state as an investment adviser representative, a person must A)be employed by a commercial bank located in the state B)be registered as a representative of an investment adviser and have passed the appropriate NASAA exam for IARs C)have passed the agent's exam and taken no other exams D)be registered as an agent of a brokerage house and have passed the appropriate NASAA exam for IARs

B

Under the Investment Advisers Act of 1940, which of the following is excluded from the definition of a person associated with an investment adviser? A) An employee who manages client accounts for an investment advisory firm B) A clerk in an investment advisory firm C) A majority stockholder of an investment advisory firm D) A minority partner of an investment advisory firm

B

As used in the regulations, the term impersonal investment advice means A)investment advisory services provided by a team of advisers B)investment advisory services provided where the client does not know the identity of the investment adviser representative C)investment advisory services provided strictly by subscription D)investment advisory services provided by means of written material or oral statements that do not purport to meet the objectives or needs of specific individuals or accounts

D

Regional Financial Services, LLC, is registered as an investment adviser in States A, B, C, and D. They have just filed an application for registration in State E. Registration of this investment adviser in State E automatically confers registration as an IAR in State E on A)any employee who is functioning as an IAR in State A, B, C, or D B)an employee who will be soliciting clients for the adviser in State E C)clerical employees handling back-office operations D)officers, partners, and directors of the firm who will be functioning in State E as IARs

D

Under the Uniform Securities Act, if the Administrator does not deny an application for registration and no disciplinary proceeding is underway in regard to it, how many days after filing the application as an investment adviser representative does registration generally become effective? A)5 B)7 C)10 D)30

D

Some registered investment advisers are federal covered, while others register on a state by state basis. In the case of a state-registered investment adviser having its only office in Oregon with no offices in any other state, the authority of the office of the Administrator would include A)the Idaho Administrator requiring registration of IARs who make telephone calls to residents of Idaho B)requiring the IA to renew its consent to service of process when paying the annual fee C)requiring each IAR to provide a statement of financial condition D)requiring IARs to pass a qualification exam

D As you know from being here right now, this test is required by the Administrator. What about the Idaho Administrator? Well, maybe the IARs are making 5 or fewer calls in any 12-month period. Maybe they are calling institutional clients domiciled in Idaho. In any event, if you have to choose between an answer that is 100% right all of the time (qualification exams) and one that is right only some of the time. Go for the 100%.

An individual is currently registered as an agent with a broker-dealer. If the agent would like to offer wrap fee programs through the firm, all of the following statements are correct EXCEPT A) the agent would now come under a greater fiduciary responsibility B) the broker-dealer would have to be registered as an investment adviser C) the agent would be defined as an investment adviser representative D) the agent would be defined as an investment adviser

D Once the broker-dealer decides to offer wrap fee programs, it is no longer excluded from the definition of an investment adviser and would become required to register on either the state or federal level. The agent would now become an IAR of the firm and, as such, would now carry the additional fiduciary responsibility incurred in the advisory business.

Long Range Planning (LRP) is a covered investment adviser doing business in all 50 states. Fred Fergus is an IAR with LRP and splits his time between an office in State A and State D. Fred has retail clients as follows: 16 clients in State A 12 clients in State B 6 clients in State C 4 clients in State D Fred would have to register as an IAR in

States A + D

Which of the following is (are) not exempt from registration as an investment adviser representative in the state in which they conduct business? A Certified Financial Planner who, while affiliated with a broker-dealer and an investment adviser, prepares comprehensive financial plans and whose only compensation is commissions generated from the purchase of recommended securities. An insurance agent who prepares comprehensive financial plans and receives commissions on any insurance products purchased by his clients A broker-dealer with extensive business in the state A mutual fund company with offices and clients in the state

1 + 2 A Certified Financial Planner who prepares comprehensive (the exam could say detailed) financial plans and is compensated by the commissions earned when the customer purchases the recommended securities, must register in the state as an investment adviser representative of the advisory firm. This is considered indirect compensation because the regulators take the stance that the CFP would not go through the effort to prepare the plan (which contains securities advice) without receiving the compensation from the trades. Note that the CFP is affiliated with both a BD and an IA. That's how the CFP can earn commissions on the securities sales.. An insurance agent who prepares comprehensive financial plans for commissions is also acting in the capacity of an investment adviser representative and must register accordingly. In both cases, these individuals are holding themselves out as offering investment advice because, at least in the eyes of the USA, there is no such thing as a comprehensive financial plan that does not involve securities. The commissions they receive are considered indirect compensation for the rendering of investment advice. Broker-dealers and mutual fund companies are not investment advisers under the Uniform Securities Act.

Which of the following is (are) required to register with a state Administrator? Investment adviser representatives of federal covered advisers who have natural person clients and have a place of business in the state A person who only provides impersonal investment advice through newspaper columns, magazine articles, or financial publication of general and regular circulation An investment adviser registered in a different state and who has no place of business in the state, but has had fewer than 6 individual advisory clients in this state during the previous 12 months A person who is an officer of a federal covered investment adviser and does not function as an investment adviser representative

1 only

According to the Uniform Securities Act, which of the following would be defined as an investment adviser representative? John, who opens an investment advisory firm where he devotes his time exclusively to management responsibilities as the sole proprietor of the firm Paul, who works for a firm soliciting investment management accounts on behalf of several different investment managers Margaret, who works as a commission sales agent for a broker-dealer Mark, an employee of AAA Broker-Dealers, who solicits brokerage clients for commissions on the basis of research conducted by his firm's securities analyst

1, 2 Paul, who works for a firm soliciting investment management accounts for several investment managers, would be defined as an investment adviser representative because he is acting in the capacity of a sales agent for investment advisers. John, as the owner of a sole proprietorship, is both an investment adviser and the firm's only investment adviser representative. Margaret would not be defined as an investment adviser representative because she functions as a registered agent for a broker-dealer. If she sold investment advice for the broker-dealer's investment management subsidiary, she then would be defined as an investment adviser representative. An agent of a broker-dealer, earning commissions on security sales, is not an IAR even if his primary selling tool for the brokerage business is the firm's outstanding research department.

Under the Uniform Securities Act, any partner, officer, or director of a registered investment adviser is an investment adviser representative if a function of the position involves offering advice concerning securities managing client accounts or portfolios determining securities recommendations for representatives to disseminate supervising personnel engaged in advisory activities but not directly dealing with the public

1, 2, 3, 4

The Uniform Securities Act authorizes the state Administrator to require either oral or written qualification examinations of investment adviser representatives and officers of investment adviser partnerships or corporations officers of investment advisers to pass a qualification examination an applicant for initial registration to publish an announcement of the application in one or more specified newspapers published in the state investment adviser representatives to pass a qualification examination

1, 2, 3, 4 The state Administrator may require qualification examinations for officers of investment advisers, as well as its representatives, and may require them to publish an announcement in one or more newspapers published in the state. The Administrator may also require either an oral or written examination.

Under the Uniform Securities Act, which of the following statements regarding the employment of investment adviser representatives by a state-registered investment adviser is (are) true? The investment adviser must notify the Administrator whenever an investment adviser representative is terminated. An investment adviser is not required to notify the Administrator when an investment adviser representative begins employment. The registration of an investment adviser representative is effective only as long as the individual is employed by a registered investment adviser.

1, 3 Whenever an individual begins or ends association as an IAR with a state-registered investment adviser, the IA must notify the Administrator. An IAR's registration is only valid while employed by a registered investment adviser.

According to the Uniform Securities Act, which of the following is an investment adviser representative? 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 An employee of AAA Investment Management Company who is properly registered under the USA and supervises analysts who provide research to clients An employee of a federal covered adviser with an office in the state who offers investment advice to the public An agent of a broker-dealer with strong investment opinions who sells securities only on a commission basis

2, 3 An investment adviser representative means any partner, officer, director, or other individual, except clerical or administrative personnel, who is employed by an investment adviser that is registered or required to be registered. Therefore, unregistered personnel are not investment adviser representatives. An employee who supervises analysts who deal with the public must be an investment adviser representative. The employee of the federal covered adviser with an office in the state is also an investment adviser representative. The agent is an agent of a broker-dealer, not an investment adviser representative.

Under the Uniform Securities Act, which of the following is TRUE regarding registration of investment adviser representatives? A)To register, a representative must submit a completed application for registration, a filing fee, and a signed consent to service of process. B)A representative's registration remains in effect even during a period when the representative is not employed by a registered investment adviser. C)Registration in the state where a representative has his business office enables the representative to do business in any state. D)Representatives are automatically registered when they become employed by a registered investment adviser.

A

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

A

Gibraltar Advisers is a federal covered investment adviser with offices in 13 states. However, Nancy, a Gibraltar employee who solicits accounts for Gibraltar out of an office in one of those states, is required to complete the NASAA examination and register at the state level. Why might this occur? A)The Uniform Securities Act requires investment adviser representatives employed by federal covered advisers, including solicitors, to register at the state level, regardless of whether the firm is required to register at the state level, as long as the IAR has a place of business in the state. B)The state securities Department is required to register all individuals serving professionally in the investment industry. C)All employees of Gibraltar must register at both the state and federal level. D)The state securities Administrator has stricter standards than federal standards and requires investment associates to register at the state level.

A Certain individuals employed by investment advisers, including those whose only function is to solicit advisory business, are deemed to be investment adviser representatives. Even though the firm does not have to register in any state, IARs must register in each state in which they have a place of business.

When an investment adviser representative terminates employment with a federal covered investment adviser and then registers with a different federal covered investment adviser in the state where the individual has an office, A)only the investment adviser representative must notify the Administrator promptly B)the investment adviser representative and the employing adviser must notify the Administrator promptly C)only the terminating investment adviser must notify the Administrator D)the investment adviser representative and the federal covered advisers must notify the Administrator promptly

A If you are working for a registered investment adviser within a specific state, that state securities Administrator wants to know who you are. The problem becomes a question of who is responsible for notifying the state securities Administrator of your employment. A federal registered investment adviser is exempt from registration at the state level and therefore has very little contact with the state. If you go to work for a federal registered investment adviser, it becomes your duty to notify the state securities Administrator that you are working there, as well as when you terminate.

An investment adviser representative of a federal covered investment adviser registers with A)the Administrator. B)the FINRA. C)the NASAA. D)the SEC.

A Registration of IARs is done solely on the state level. IARs register with the Administrator of each state in which they are required to be registered.

Esther Watson has recently been hired by Robinson, Ibbotson, Carlson and Hanson (RICH), an investment adviser registered with the SEC. RICH has offices in 17 states and Esther works in the branch located in State A. If no exemption is available, Esther will have to register as an IAR with A) the Administrator of State A. B) the SEC because RICH operates in more than 15 states. C) the Administrators of each of the 17 states. D) the FINRA.

A Unless qualifying for an exemption, employees of investment advisers must register as an IAR in any state in which they have a place of business. This is a state-level registration so the SEC or FINRA are not involved in any way.

Which of the following individuals employed by an investment adviser would be required to be registered as an IAR? A)The night watchman B)A chief compliance officer (CCO) who has no sales duties C)An intern who receives no compensation whatsoever D)The vice president of human resources

B

Which of the following is required to effectuate annual renewal of the registration of an investment adviser representative affiliated with a federal covered adviser? A)Consent to service of process B)State licensing fee C)Renewal notice to the SEC D)Form U4

B All investment adviser representatives are registered with the states, not the SEC. Renewal requires the payment of the annual renewal registration or licensing fee. The consent to service of process is a permanent document submitted with the initial application for registration.

James Stillman is an investment adviser representative with Rock, Feller, and Standard (RFS), a covered adviser with its principal office in State O. Stillman works out of an office in State P and has 4 retail clients there. In addition, Stillman has 25 retail clients in State D, 6 retail clients in State M, and 1 retail client in State O. Stillman would be required to register as an investment adviser representative in A)States D and M. B)State P. C)States P, D, and M. D)States P and O.

B As an IAR for a federal covered investment adviser, Stillman is required to register only in those states in which he (Stillman) has a place of business. Although Stillman has clients in several states, the question tells us that his place of business is the office in State P. Please note that, as long as an IAR with a covered adviser does not maintain a place of business in a state, there is no numerical limit on the number of clients he can have and still be exempt from registering in that state.

Which of the following regarding the registration of investment advisers and their representatives is TRUE? A)ABC Advisers, Inc., is an investment advisory firm registered with the Administrator; therefore, its representatives need not be registered with the Administrator. B)ABC Advisers, Inc., registered with the Administrator, employs an investment adviser representative who left the employment of another investment advisory firm 6 months ago. ABC must notify the Administrator of this association promptly. C)XYZ Advisers, Inc., is a federal covered investment advisory firm registered with the SEC; therefore, its representatives need not be registered with the Administrator. D)An investment adviser representative, terminated his employment with ABC Advisers and, 6 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 Only state-registered investment advisory firms are required to notify the appropriate state Administrator when employment is terminated or begun. In the case of investment adviser representatives of federal covered advisers, notification is the responsibility of the adviser representative. Investment adviser representatives of both state and federal registered investment advisers must be registered with the appropriate state Administrator(s), unless otherwise exempted. In the case of agents, not only the broker-dealers but also the agents must notify the Administrator.

An individual who has passed the NASAA examination for registration as an investment adviser representative may begin soliciting advisory clients A)immediately B)when informed by the investment adviser that the representative's registration is effective C)within 48 hours D)when informed by the Administrator that the representative's registration is effective

B Passing the exams does not automatically give one an effective investment adviser representative's license. Notice is received by the investment adviser from the appropriate state and/or federal authorities and then, in accordance with that firm's procedures, advisory activity may start. The Administrator does not have direct contact with the individual.

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 is exempt from registration because he has fewer than 6 retail clients. B)Rutherford must register as an IAR of WAJI with the state of Virginia. C)Rutherford is exempt from registration because his only clients are institutions. D)Rutherford cannot register as an IAR of WAJI because providing advice exclusively to institutions exempts the firm from registration.

B Regardless of whom the clients are, Rutherford has a place of business in Virginia and that requires registration with the Administrator as an IAR. If WAJI does business in other states where it does not have a place of business, it is exempt from registration because the only clients are institutions. If WAJI is not registered in the state, Rutherford can't register as their IAR. The de minimis exemption for fewer than 6 retail clients only applies when there is no place of business in the state.

Pontourny Advisory and Investment Services (PAIS) is a federal covered investment adviser. Its principal office is in State X. PAIS also maintains branch offices in States Y and Z. Brenda is the manager of the branch office in State Y. Some of the individuals being supervised by Brenda have clients in States X and Y, and others have clients in States Y and Z. Brenda must register as an IAR in A)States X and Y B)State Y C)States Y and Z D)States X, Y, and Z

B Those who supervise the activities of investment adviser representatives are themselves defined as IARs. An IAR representing a federal covered investment adviser need only register in the state or states in which she (the IAR) has a place of business. There is nothing in this question to suggest that Brenda has a place of business anywhere other than in State Y, where her branch office is located. Remember, when it comes to federal covered advisers, registration of their IARs is dependent on the IAR's place of business, not the location of their clients.

An individual has been employed by a broker-dealer to make cold calls to solicit prospects for the firm's new wrap fee program. Under the USA, it is true to state that this individual A)does not need supervision because he is only making cold calls B)would be permitted to use the term investment counsel C)would be defined as an investment adviser representative D)is not defined as an investment adviser representative because he is only making cold calls

C

Jay Cooke is an investment adviser representative with a state-registered investment adviser. Jay operates out of an office in State Y. He would be required to register in State Z if, during the previous 12 months, he had A)fewer than 6 retail clients who were residents of State Z. B)5 or fewer retail clients who were residents of State Z. C)6 or fewer retail clients who were residents of State Z. D)no more than 5 retail clients who were residents of State Z.

C

Strategic Capital Asset Managers (SCAM) is an investment adviser registered with the SEC. Registration as an investment adviser representative would be required of an employee who A)cleans the office on weekends B)supervises the activities of clerical staff who file individual clients' transaction reports C)provides recommendations on securities to the firm's bank clients D)presents seminars on the benefits of whole life insurance

C

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

C

Under the Uniform Securities Act, which of the following would be included in the definition of an investment adviser representative? A)An individual who renders fee-based advice on precious metals B)An employee, highly skilled in evaluating securities, who performs administrative or clerical functions for an investment adviser C)A solicitor for an investment advisory firm who is compensated for the service rendered D)An agent who offers incidental advice on securities whose sole compensation is from commissions on transactions

C

According to the Investment Advisers Act of 1940, which of the following is always a natural person? A)A broker-dealer B)The city of Chicago C)An investment adviser representative D)An investment adviser

C Natural persons are human beings. An adviser representative must be an individual. Although there are broker-dealers and investment advisers organized as a sole proprietorship, almost all are structured under some type of business form. A city is never an individual.

An individual is employed by a federal covered investment adviser for the sole purpose of giving advice related to monitoring investment portfolios, but only to qualified employee benefit plans. Under the Uniform Securities Act, this individual is A)defined as an IAR because the plan is qualified B)not defined as an IAR because the plan is considered an institutional client C)defined as an IAR because the individual is rendering investment advice D)not defined as an IAR because the individual works for a federal covered investment adviser

C Regardless of whom the advice is given to, unless there is some kind of exemption involved, individuals working for IAs (state or federal) must register as IARs in at least one state. It makes no difference if the plan is qualified or not.

Sharon Smith is an investment adviser representative with Highwater Advisers, a federal covered investment adviser with its principal office in State X. Sharon 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 Sharon has a client in State X, registration as an IAR would be required in State X. B)because Highwater's principal office is in State X, Sharon would be required to register as an IAR in State X. C)because Sharon has no place of business in State X, she does not have to register as an IAR in State X. D)because Sharon's client is a bank, she does not have to register as an IAR in State X.

C The key is that Sharon is an IAR for a covered IA. When that is the case, the IAR is only required to register in states where she (the IAR) maintains a place of business. Sharon does not have a place of business in State X so no registration is required there. The fact that the client is a bank is of no relevance nor is the location of her employer's principal office.

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)an individual employed by an investment adviser to solicit new advisory clients, compensated at a rate of $500 for each new account. B)a senior officer of an investment adviser responsible for marketing the adviser's services as opposed to making investment advisory decisions. C)a silent partner in an advisory firm organized as a general partnership. D)an employee of the firm with a degree in communications whose job is the graphic design of the investment adviser's research publications.

D

Howard Robard is an investment adviser representative with Hughes & Company, a state-registered investment adviser having its principal office in State O and offices in States P and D. Howard works out of an office in State P and has 4 retail clients there. In addition, Howard has 25 retail clients in State D, 6 retail clients in State M, and 1 retail client in State O. Howard would be required to register as an investment adviser representative in A)State P. B)States P, D, M, and O. C)States D and M. D)States P, D, and M.

D

Sally is registered as an agent with ABC Securities Co., a major brokerage house with offices in most states. ABC has recently introduced a fee-based asset management program and has asked Sally to devote one hour per day soliciting her existing clients for this program. Under the USA, Sally would A)only be permitted to solicit those clients who currently have discretionary accounts with ABC B)not be required to obtain any additional licensing beyond her agent's registration C)be required to obtain registration as a registered investment adviser D)be required to obtain registration as a registered investment adviser representative

D

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

D

If a natural person files an initial application for state registration as an investment adviser representative on October 1, the registration will most likely expire A)on the anniversary date of the following year B)the registration does not expire until the person resigns, retires, or is expelled by the Administrator C)on a date set by the Administrator of that state D)December 31 of that year

D Although the Administrator may change the date, registrations typically expire on December 31 of each year. In this question, the registered person would have to renew his registration in 3 months. Thereafter, renewal would occur every 12 months on December 31.

An investment adviser hires 2 individuals to solicit new customers for the firm's wealth management service. Under the USA, A)they may begin soliciting as soon as they have passed their licensing examinations B)soliciting is generally prohibited C)each of them would have to register as an investment adviser D)registration as investment adviser representatives is required

D The definition of investment adviser representative includes individuals who solicit for the firm's advisory business.

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)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's registration as an IAR in State Z would become effective after passing the Series 65 or Series 66 exam. C)Marjorie would be required to complete an application for IAR registration with State Z. D)Marjorie would automatically be registered as an IAR in State Z.

D When DEF's registration becomes effective in State Z, those individuals included in the filing are granted automatic registration - they don't have to file an individual Form U4. That filing includes the names and other pertinent information about all of the partners, officers, or directors who are already acting as IARs. Please note, it is not any IAR, it is only those listed or, as the rule states, those occupying a similar status, etc., who receive this treatment.