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green light exam 2 study guide with complete solutions

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green light exam 2 study guide with complete solutions Which of the following statements is NOT TRUE concerning agency cross trades? - Answer️️ -a client may provide verbal authorization for up to 10 days is NOT TRUE. An agency cross transaction is one in which the adviser acts as broker fo...

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  • September 15, 2024
  • 14
  • 2024/2025
  • Exam (elaborations)
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  • Green light
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green light exam 2 study guide with
complete solutions


Which of the following statements is NOT TRUE concerning agency cross trades? -

Answer✔️✔️-a client may provide verbal authorization for up to 10 days is NOT TRUE.




An agency cross transaction is one in which the adviser acts as broker for both sides of

the trade. Advisory clients must provide written consent before an adviser may affect

the first agency cross transaction. This is a blanket consent and covers future agency

cross transactions until the client revokes consent, which can be done at any time.

Which of the following situations would constitute an assignment of an investment

advisory contract requiring client approval?

The investment adviser is a partnership with three partners, one of whom dies

The investment adviser is a partnership with seven partners, three of whom retire, while

another dies

The investment adviser changes from a sole proprietorship to a LLC

A corporation acquires 60% of the assets of the broker-dealer parent of an investment

adviser - Answer✔️✔️-answer is II, III, and IV.

If the adviser is organized as a partnership, the death, resignation or retirement of a

**minority** of the partners does not constitute a change of control or management—

roman numeral (I). However, the investment adviser does need to notify its clients if the

composition of the partnership changes.

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