Practice 66 test
Which of the following statements regarding the filing requirements for institutional investment managers with investment discretion over portfolios with an aggregate value of $100 million or more of 13(f) securities are TRUE? I.Form 13D must be filed. II.Form 13F must be filed. III.Filing must occur within 10 days of the month-end. IV.Filing must occur within 45 days of the quarter-end
II & IV
Under Section 401 of the Uniform Securities act, the term "agent" does not include an individual who represents an issuer in effecting transactions in a security A) issued or guaranteed by any federal credit union or any credit union, industrial loan association, or similar association organized and supervised under the laws of this state. B) issued by and representing an interest in or a debt of, or guaranteed by, any federal savings and loan association, or any building and loan or similar association organized under the laws of any state and authorized to do business in this state. C) issued by any person organized and operated not for private profit but exclusively for religious, educational, benevolent, charitable, fraternal, social, athletic, or reformatory purposes, or as a chamber of commerce or trade or professional association. D) issued by and representing an interest in or a debt of, or guaranteed by, any bank organized under the laws of the United States, or any bank, savings institution, or trust company organized and supervised under the laws of any state.
D An individual representing an issuer in the sale of that issuer's security is not defined as an agent if the security is •issued by and representing an interest in or a debt of, or guaranteed by, any bank organized under the laws of the United States, or any bank, savings institution, or trust company organized and supervised under the laws of any state; •issued or guaranteed by the United States, any state, any political subdivision of a state, or any agency of the foregoing; •any security issued or guaranteed by Canada, any Canadian province, any political subdivision of any such province, any agency of the foregoing, or any other foreign government with which the United States currently maintains diplomatic relations, if the security is recognized as a valid obligation by the issuer or guarantor; •a promissory note, draft, bill of exchange or bankers' acceptance that evidences an obligation to pay cash within 9 months after the date of issuance, is issued in denominations of at least $50,000, and receives a rating in one of the 3 highest rating categories from a nationally recognized statistical rating organization; or •any investment contract issued in connection with an employees' stock purchase, savings, pension, profit-sharing, or similar benefit plan if the Administrator is notified in writing thirty days before the inception of the plan It is not just any exempt security that qualifies the individual for the exemption - only the five listed above. A confusing point is that the individual is not an agent when the sales are made in any exemption transaction with no exceptions. Reference: 2.3.2.2 in the License Exam Manual
Question ID: 630308 Under the rules of the Investment Advisers Act of 1940, which of the following need NOT be included in an investment advisory contract? A) Amount of prepaid fees to be returned to a client if the contract is terminated. B) A description of the services to be provided. C) The past performance record of the investment adviser. D) The advisory fee.
c Written advisory contracts must contain the services to be provided; the term of the contract; the amount of the advisory fee or the formula used to compute it; provisions for refunds, if any, if the advisory fee is prepaid and the contract is terminated; provisions as to whether discretionary authority is given and to what extent; and provisions requiring the consent of the client to assign the contract. There is no requirement for including the past performance record of the adviser. Reference: 3.14 in the License Exam Manual
