Which THREE persons or firms may be excluded from having to register under the
Investment Advisers Act of 1940? (Choose three.)
A. Accountants whose advisory services pertain solely to incidental financial planning.
B. Persons or firms whose advice and reports are related solely to U.S. governme...
IACCP (QE) Practice Test Which THREE persons or firms may be excluded from having to register under the Investment Advisers Act of 1940? (Choose three.) A. Accountants whose advisory services pertain solely to incidental financial planning. B. Persons or firms whose advice and reports are related solely to U.S. government securities. C. Publishers of generally circulated, bona fide newspapers or financial journals. D. Domestic banks and bank holding companies. - ✔✔B. Persons or firms whose advice and reports are related solely to U.S. government securities. C. Publishers of generally circulated, bona fide newspapers or financial journals. D. Domestic banks and bank holding companies. Which activity is NOT mandated for investment advisers that store required records electronically? A. Providing the SEC with prompt access, retrieval, and reproduction. B. Maintaining copies of all electronically stored record s using WORM format. C. Arranging and indexing records to provide easy access and retrieval. D. Developing procedures to preserve and maintain records. - ✔✔B. Maintaining copies of all electronically stored records using WORM format. The Investment Advise rs Act of 1940 defines the scope of the anti -fraud provisions as extending to: A. SEC -registered advisers and foreign advisers with a place of business in the U.S., whether registered or exempt. B. SEC -registered advisers and foreign advisers doing busin ess in the U.S., whether registered or exempt. C. SEC -registered investment advisers. D. All investment advisers, whether registered or exempt. - ✔✔D. All investment advisers, whether registered or exempt. The fiduciary duty imposed on advisers under the Investment Advisers Act of 1940 can BEST be described as: A. providing equal disclosure to all clients. B. imposing an ERISA fiduciary standard. C. putting the client's interests ahead of the adviser's. D. acting in a custodial capacity. - ✔✔C. putting the client's interests ahead of the adviser's. Which TWO qualify as a "security" under the Investment Advisers Act of 1940? (Choose two.) A. Commodity futures B. Limited partnership interests C. Fixed an nuities D. Variable annuities - ✔✔B. Limited partnership interests D. Variable annuities In performing due diligence on a potential solicitor, the investment adviser must ensure that the solicitor: A. is not subject to any statutory disqualification. B. is not acting as a solicitor for an unregistered adviser. C. has passed the Series 65 exam. D. is registered in appropriate states. - ✔✔A. is not subject to any statutory disqualification. An SEC -registered investment adviser is NOT required to disclose "material" disciplinary information in its Form ADV Part 1 after: A. 5 years B. 10 years C. 12 years D. 15 years - ✔✔B. 10 years Which event would be deemed an assignment of an investment advisory contract? A. An adviser hires a new CEO to replace its current retiring CEO. B. An adviser is purchased by an unaffiliated adviser. C. Any public offering of an adviser's stock. D. An adviser organized as a corporation changes its structure to a partnership. - ✔✔B. An adviser is purchased by an unaffiliated adviser The Investment Advisers Act of 1940 requires that written investment advisory agreements must address: A. proxy voting. B. assignment of the contract. C. brokerage arrangements. D. fees. - ✔✔B. assignme nt of the contract. If an investment adviser becomes ineligible for SEC registration, which document must be filed to terminate its registration? A. Form DRP B. Form ADV -W C. Form ADV Part 2A
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