IACCP TEST QUESTIONS AND ANSWERS

4 elements of "investment advice" - Answer- 1. Advice about market trends 2. Advice in historical or data form 3. Advice about selecting an adviser 4. Advice about the pros and cons of securities vs. other investments What is the RAUM threshold for Registered Advisers? - Answer- $150 million What is the RAUM range of a "Mid Sized adviser"? - Answer- $25-100 million What two factors determine whether mid size advisers are required to register? - Answer- 1. Mid size advisers have to register if the state where their principal office is located does NOT require registration. 2. If they are registered in a state that is NOT subject to a Exam by the State securities administrator. Define small adviser - Answer- Advisers with $25 million or less in assets under management 3 reasons for small advisers to register with SEC - Answer- 1. principal state does not require registration 2. state does not require any type of exam IARD Account - Answer- All states that require registration of IAR's (RA's on CRD) which can be done in a IARD account When is the deadline to amend form ADV? - Answer- All firms that are registered with the SEC on Jan 1st 2012 must amend their ADV by March 30th, 2012 "buffer zone" to remain SEC registered - Answer- If a firm has assets between $90 - $110 million, then the firm is not required to switch their registration New rule on "private adviser exemption" - Answer- an adviser with its principal office and place of business in the U.S. is exempt from Advisers Act registration under the Private Fund Adviser Exemption if it: (1) acts solely as an adviser to one or more "Qualifying Private Funds" and (2) manages private fund assets of less than $150 million Foreign Private Adviser Exemption - Answer- Under Dodd-Frank Act, adviser will be exempt if: 1. has no place of biz in the U.S.; 2. has