Series 65 Unit 1 Regulation Of Investment Advisors
Series 65 Unit 1 Regulation of Investment Advisors
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Series 65 Unit 1 Regulation of Investment Advisors || with 100% Verified Solutions.
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Series 65 Unit 1 Regulation of Investment Advisors
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Series 65 Unit 1 Regulation Of Investment Advisors
federal level regulation of investment advisors correct answers Investment Advisers Act of 1940
state level regulation of investment advisors correct answers Uniform Securities Act
Uniform Securities Act of 1956 (USA) correct answers there were numerous state security laws (blue sky laws) and...
Series 65 Unit 1 Regulation of Investment Advisors || with
100% Verified Solutions.
federal level regulation of investment advisors correct answers Investment Advisers Act of 1940
state level regulation of investment advisors correct answers Uniform Securities Act
Uniform Securities Act of 1956 (USA) correct answers there were numerous state security laws
(blue sky laws) and there was a need for uniformity in securities laws among states
the term state means... correct answers any of the 50 states, ay territory or possession of the US,
DC, Puerto Rico
NASAA correct answers North American Securities Administrators Association- advisory body
of state securities regulators
administrator correct answers refers to the office or agency that has the complete responsibility
for administering the securities laws of the state
investment adviser (IA). (LO1) correct answers identical under state and federal level:
-any person who, for compensation, engages in the business of advising others, either directly or
through writing, as to the value of securities or the advisability of investing in
person correct answers individual, corporation, a partnership, an association, a joint stock
company, a trust where the interests of beneficiaries are evidenced, government (basically
anyone that can open an account)
easier to remember the 3 NON-persons correct answers 1. minor
2. deceased individual
3. individual declared mentally incompetent by the courts
investment adviser three prong test correct answers involved in:
1. gives advice to others on securities
2. does so as part of regular business activity
3. receives compensation for performing this
giving advice to others on securities correct answers both direct and indirect advice to others
included
-can be written or oral
1. non security investments advice correct answers this is not considered advice about securities
1. commodities
2. collectibles (coins, stamps)
3. precious metals (gold and silver)
4. real estate
, 2. in the business of providing advice correct answers -give advice on regular basis that is a
business activity (advice doesnt have to be the principal activity)
-advertise investment advisory services and presents themself as investment adviser
3. compensation correct answers must receive economic benefit
-fees, commissions, or other types of fees (can be directly or indirectly paid)
ex. of indirect compensation correct answers designs comprehensive financial plan but doesn't
charge a fee, but receives commissions of insurance purchased
investment counsel correct answers 2 criteria in the Inv Act of 1940 that must be met in order to
use this term:
1. IA's principal business must be giving investment advice (excludes financial planners and
others for whom investment advice is only a part of what they do)
2. provide investment supervisory services
2. investment supervisory services means... correct answers a- you have discretionary authority
b- do not have discretion, but have ongoing responsibility to make recommendations
you do not provide continuous and regular management if: correct answers 1. provide market
timing but no ongoing management
2. provide only impersonal advice (market newsletters)
3. make an initial asset allocation without continuous management
4. provide advice on periodic basis (like client request) or onspecific date
SEC release IA-1092 and its impact on definition of IA correct answers this relesae interprets the
definition of IA Act of 1940 to include financial planners, pension consultants, and others who
offer investment advice as PART of their financial practices (includes sports and entertainment
representatives)
three groups include in IA from SEC Release IA-1092 correct answers 1. financial planners
2. pension consultants
3. sports and entertainment representatives
sports agent is included as IA if... correct answers they provide investment advice... not included
if they secure a contract for football player and receive 10% commission but no investment
advice
exclusion correct answers excluded from, or not included in
exemption correct answers not being subject to the registration provisions of the acts even
though that person meets the definition
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