Series 65: Unit 9 Quiz 1

Under the Uniform Securities Act, if not denied, an application for registration as an investment adviser will generally become effective how soon after filing? A. 15 days B. 10 days C. Immediately D. 30 days

30 days

An investment adviser registered in State A who has no office in State B is exempt from registration in that state if, during any 12-month period, the adviser limits its retail clients in State B to no more than A. 10. B. 20. C. 35. D. 5.

5

Under the Investment Advisers Act of 1940, for how many years must an investment adviser maintain the records required by regulation? A. Five years B. No requirement C. Three years D. One year

5 yrs

Initial application for registration as an investment adviser requires which of these? 1. A consent to service of process 2. A fee 3. Disclosure as to whether the applicant will have discretionary powers over client funds and/or securities 4. Disclosure as to whether the applicant will have custody of client funds or securities

A consent to service of process and a fee and a disclosure as to whether the applicant will have discretionary powers over client funds and/or securities and disclosure as to whether the applicant will have custody of client funds or securities

An investment adviser sends a notice offering a research report she has recently prepared to a group of 25 new members of the local Lions Club. Under the NASAA Model Rule on recordkeeping for investment advisers, the firm must keep a copy of the notice along with A. the names of those members to whom the report was sent. B. a memorandum describing the list and its source. C. a copy of the full roster of the local chapter. D. the date the Administrator approved the research report.

A memorandum describing the list and its source

Under the NSMIA, who is included in the term federal covered adviser? 1. A person registered with the SEC under the Investment Advisers Act of 1940 2. A person registered as an investment adviser in two or more states 3. A person excluded from the definition of investment adviser under the Investment Advisers Act of 1940 4. A person required to register with the state Administrator

A person registered w/ the SEC under the Investment Advisers Act of 1940 and a person excluded from the definition of investment adviser under the Investment Advisers Act of 1940

The Investment Advisers Act of 1940 contains the basic definition of persons who are investment advisers. Which of the following persons would be included in the listing of those who must register? 1. A person who gives advice to investors on collectibles that are most likely to appreciate in value in the next 10 years 2. A chemical engineer who gave advice on new product ideas that was solely incidental to the practice of the profession and for which no compensation was received 3. A person, while receiving compensation, described the advantages of certain types of managed investments, such as mutual funds and REITs, but did not recommend a specific investment 4. A fee-based financial planner who, on the basis of current economic forecasts, had many of his clients liquidate their investment-grade bonds and purchase gold coins with the proceeds

A person, while receiving compensation, described the advantages of certain types of managed investments, such as mutual funds and REITs, but did not recommend a specific investment and a fee-based financial planner who, on the basis of current economic forecasts, had many of his clients liquidate their investment-grade bonds and purchase gold coins with the proceeds

Under the Uniform Securities Act, all of the following persons may provide investment advice incidental to their normal business without requiring registration as an investment adviser except A. an economist. B. an engineer. C. a lawyer. D. a teacher.

An economist

Which of the following statements best describes an investment supervisory service as described by the Investment Advisers Act of 1940? A) No actions are taken in client accounts without first being approved by a senior supervisory person. B) An investment adviser sends monthly newsletters to 200 clients offering nonspecific advice. C) An investment adviser provides continuous advice based on the client's individual needs. D) An investment advisory firm offers nondiscretionary services on a non-client-specific basis.

An investment adviser provides continuous advice based on the client's individual needs

Which of the following investment advisers, with no place of business in the state, does not qualify for the de minimis exemption? A. An investment adviser who, during the preceding 12-month period, has had fewer than six retail clients B. An investment adviser who, during the preceding 12-month period, has had five or fewer retail clients C. An investment adviser who, during the preceding 12-month period, has had no more than six retail clients D. An investment adviser who, during the preceding 12-month period, has had no more than five retail clients

An investment adviser who, during the preceding 12-month period, has had no more than 6 retail clients

Under current regulations, registration with the SEC is optional for all of the following investment advisers except A. Midwestern Asset Managers, LLC, with $53 million in AUM, required to register in 17 states B. CEF Investment Managers, LTD., a partnership managing a small, registered, closed-end investment company traded on the OTCQB. C. Employee Benefit Specialists, Inc., a pension consultant with $225 million in AUM. D. Grand Visions Advisers, a sole proprietorship with $104 million in AUM

CEF Investment Managers, LTD., a partnership managing a small, registered, closed-end investment company traded on the OTCQB

If a federal covered adviser's fiscal year ends on November 30, 2022, it must file its annual updating amendment to its Form ADV no later than A. December 31, 2022. B. February 28, 2023. C. January 18, 2023. D. March 30, 2023.

February 28th, 2023

Under the Uniform Securities Act, which of the following statements is true about an investment adviser who does not have an office in a state and solicits no more than five clients in that state? A. He is not liable for violations of the antifraud provisions. B. He is exempt from the advertising requirements in the state. C. He must file a consent to service of process. D. He is not required to register as an investment adviser in that state.

He isn't required to register as an investment adviser in that state

According to the Investment Advisers Act of 1940, how can records of the investment adviser's business be stored during the first two years? 1. In written form on site 2. On microfilm on site 3. On magnetic tape or a computer on site 4. On computer disks at an offsite storage facility that requires 30 days' notice to retrieve

In written form on site and on microfilm on site and on magnetic tape or a computer on site and on computer disks at an offsite storage facility that requires 30 days' notice to retrieve

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

Insurance companies

The term federal covered investment adviser would apply to a person who A. limits the advice offered strictly to securities listed on the New York Stock Exchange (NYSE). B. limits the advice offered strictly to securities issued or guaranteed by the U.S. government or one of its political subdivisions. C. is registered as such under the Investment Advisers Act of 1940. D. is registered as such under the Investment Company Act of 1940.

Is registered as such under the Investments Advisers Act of 1940

Which of the following are not investment advisers under the Uniform Securities Act? 1. Joe advises customers regarding the value of gold and silver coins. 2. The trust department of ABC Bank provides investment advice to its clients. 3. Tammy writes a newspaper column in which she analyzes and recommends securities. 4. Jack is an investment adviser representative.

Joe advises customers regarding the value of gold and silver coins and the trust department of ABC Bank provides investment advice to its clients and Tammy writes a newspaper column in which she analyzes and recommends securities and Jack is an investment adviser representative

If a natural person files his first application for registration as an agent in the state in late October, the agent's license will expire: A. automatically within 30 days after the withdrawal of registration if the state securities Administrator has initiated proceedings against the registrant. B. on December 31 of the same year. C. on December 31 of the following year. D. on every anniversary date of the initial registration.

On December 31 of the same yr

Searching Out New Growth (SONG) is a venture capital fund. As such, all of the following statements are true except A. SONG is not registered under the Investment Company Act of 1940. B. SONG only issues securities that are, except in extraordinary circumstances, nonredeemable. C. SONG must have less than $150 million in assets in the fund. D. SONG's investment adviser is exempt from registration.

SONG must have less than $150 million in assets in the fund

A state-registered investment adviser maintains custody of client funds and securities. On Thursday, the chief financial officer of the firm informs the chief compliance officer that their net worth is $31,578. Under the provisions of the Uniform Securities Act, the firm would A. send a detailed financial report to the Administrator by the close of business Monday. B. need to increase its net worth. C. do nothing, as their net worth is far in excess of the minimum requirement of $10,000. D. send a detailed financial report to the Administrator by the close of business Friday

Send a detailed financial report to the Administrator by the close of business Monday

Under which of the following circumstances may attorneys and accountants claim an exclusion from the definition of investment adviser under the Investment Advisers Act of 1940? A. They charge a separate fee for the provision of investment advice from that received for their professional services. B. The investment advisory activities have grown to represent 30% of their business. C. They advertise that they are available to provide investment advice. D. The advice is incidental to the practice of their profession.

The advice is incidental to the practice of their profession

Under the Investment Advisers Act of 1940 (as amended by the NSMIA of 1996 and the Dodd-Frank Act of 2010), an adviser is required to be registered with the SEC if A. the adviser's advice relates solely to securities issued or guaranteed by the U.S. government. B. the adviser is the publisher of a news magazine of general and regular circulation. C. the adviser's clientele is exclusively federal credit unions and the adviser has less than $100 million in assets under management. D. the adviser's clients are investment companies registered under the Investment Company Act of 1940.

The adviser's clients are investment companies registered under the Investment Company Act of 1940

An agent and a broker-dealer maintain wrap fee accounts for several of their customers. Which of the following registrations is required? A. Neither the broker-dealer nor the agent is required to have any license other than their regular securities license. B. The firm must register as an investment adviser. C. Only the registered principal would need to be registered in the state(s) in which they do business. D. The agent must be registered as an investment adviser.

The firm must register as an investment adviser

Under the Uniform Securities Act, a state-registered investment adviser whose only office was in State N would not have to register in State O if its only clients were A. trust companies. B. six or fewer retail clients. C. complex trusts. D. individual accredited investors.

Trust companies