Exam (elaborations)
IACCP Examination Study Guide 2023 | 94 Questions And Answers.
- Course
- Institution
IACCP Examination Study Guide 2023 | 94 Questions And Answers.
[Show more]
Seller
Follow
NurseSallyD
Reviews received
Content preview
IACCP Examination Study Guide 2023 | 94Questions And Answers.
"Investment Adviser" person/firm compensated for engaging in business of (directly or
indirectly) advising others on securities or the advisability of investing (or) who issues
analysis/reports concerning securities - -SEC vs Capital Gains Research Bureau basis of
Fiduciary Rule, specifically Best Interest
-SEC Registration Required when 1) definition of "IA" is met (unless otherwise excepted
from definition or exempt/prohibited from registration); AND $100M in AUM (optional
for Mid-Sized Advisers AUM $100-115M Buffer Zone) - OR - 2) when ADVISING a
Registered Investment Company - OR - 3) AUM $25-100M AND NOT
registered/required to register with State OR NOT Subject to EXAMS by State
Registration withdraw required for AUM under $90M - -SEC Registration Optional
when 1) AUM $25-100M (except NY req. at $25M) - OR - 2) Advisers Registered in 15 or
more States
(AUM $25M or less PROHIBITED from registering w/ SEC but held to various state
requirements)
-EXCLUDED from Definition of "IA" are:
1) Domestic banks and bank holding companies; 2) Services SOLELY Incidental by
lawyers, accountants, engineers, teachers, (and) 3) BD advisory services w/out special
compensation; 4) Publishers of bona fide newspapers/mags w/Regular Circulation; 5)
Advising Direct Obligations of US (bonds); 6) NRSROs (Nationally Recognized
Statistical Rating Orgs; 7) Family Offices; and 8) Others designated by SEC rulemaking
(such as those otherwise prohibited or exempt) - -EXEMPTIONS from SEC
Registration:
1) Intrastate Advisers: NOT advising, analyzing or reporting on NSE Listed Securities*
and ALL Clients reside in same state as principal office (*includes securities w/ unlisted
trading privileges); 2) Advisers to ONLY Insurance Companies; 3) Private Fund
Advisers w/ AUM less than $150M, and Advisers to Foreign Private and Venture Capital
Funds; 4) Church Plans, and certain 5) Charitable organizations 6) Registered
Commodity Trading 7) Small Business Investment Companies
-Private Fund Adviser Exemption Criteria:
PRIVATE FUND: Advise SOLELY private funds (unlimited) so long as aggregate assets
of such NOT EXCEEDING $150M (per ADV annual calculation), including Non-US
Advisers when ALL US clients are Qualifying Private Funds
VENTURE CAPITAL: Any advising SOLELY venture capital funds
FOREIGN PRIVATE: No place of business in US, Less than 15 private fund
clients/investors in US, Less than $25M aggregate AUM attributed to clients/private
fund investors, AND doesn't hold out to US public as an IA - -Form PF (intended to
Monitor Systematic Risk to US Financial System) is required by advisers to Hedge &
, other Private Funds, and SEC-Registered Advisers to 1 or More Private Funds having at
least $150M AUM attributable to such as of last fiscal year-end
Form PF filing EXEMPTION: Advisers NOT registered/required to register with SEC
-Dodd-Frank also resulted in changes to AUM by 1) raising registration threshold to
$100M, and creating Mid-Sized adviser category w/ AUM $25-100M (w/ $100-115
Buffer Zone); and 2) "RAUM" Uniform Calculation of Gross Basis at Market Value (or
fair value if n/a) to include: (i) "Securities Portfolios" (any consisting of at least 50%)
and/or Private Funds to which adviser provides Regular/Continuous Supervisory or
Management services; (ii) Proprietary accounts (owned in aggregate 25% or more),
accts managed w/out compensation and those of foreign clients; and (iii) uncalled
capital commitments to private fund(s) - -Repeal of Private Adviser Exemption (per
Dodd-Frank) brought into SEC's regulatory view hedge, private equity, venture capital,
and other private funds by adding regulation to circumvent adviser's use of a loop-hole
to avoid registration in which each fund, and not it's underlying investors, is counted as
a "client"
-An IAR (supervised person of an Investment Advisor) is required to be licensed when
it has more than 5 and with more than 10% of which are natural person clients.
EXCEPTIONS: 1) Qualified Clients (person/company that immediately after entering
into contract has at least $1 million AUM by IA or net worth of $2 million; 2) Irregular
communication; 3) Impersonal Advisory Services are NOT required for consideration
when determining an IARs licensing requirement - -When is IAR licensing required and
what are the exceptions?
-Varies by state but generally an SEC-registered IA must notice file in any state in which
it has 5 or more clients (de minimus). Exceptions: LA, NE, NH & TX - -State Notice
Filing is generally required when
-Investment Advisers are generally required to register in the state where they have a
principal place of business and any states where they maintain de minimus (5 or more
clients in that state with the exception of LA, NE, NH & TX which have their own de
minimus) - -When is State Adviser Registration generally required?
-The following are deemed a SINGLE CLIENT
1) a natural person, and: (i) any minor child; (ii) any relative, spouse, or relative of
spouse having same residence; (iii) all accounts of which the person is the only primary
beneficiary; and (iv) all trusts of the person or of which the person is the only primary
beneficiary;
2) A corporation, general partnership, limited partnership, LLC, trust, or other legal org
receiving advice based on investment objectives rather than individual objectives of
shareholders/partners/etc. INCLUDING two or more legal orgs having identical owners
- -Define client according to Advisers Act
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller NurseSallyD. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $9.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
75632 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now