Under current regulations, registration with the SEC is optional for all of the following investment advisers EXCEPT
A)
Midwestern Asset Managers, LLC, with $53 million in AUM, required to register in 17 states
B)
Employee Benefit Specialists, Inc., a pension consultant with $225 million in AUM...
Series 65 Unit 1 || with 100% Errorless Answers.
Under current regulations, registration with the SEC is optional for all of the following
investment advisers EXCEPT
A)
Midwestern Asset Managers, LLC, with $53 million in AUM, required to register in 17 states
B)
Employee Benefit Specialists, Inc., a pension consultant with $225 million in AUM
C)
Grand Visions Advisers, a sole proprietorship with $104 million in AUM
D)
CEF Investment Managers, LTD., a partnership managing a small registered closed-end
investment company traded on the OTC Bulletin Board correct answers D.
Currently, registration with the SEC is mandatory (not optional) for any investment adviser
managing a registered investment company (open or closed-end). It is optional for:
pension consultants once their AUM reach $200 million;
small and mid-size advisers who would be required to register in 15 or more states; and
those advisers with at least $100 million in AUM, but not $110 million in AUM.
Any of these choosing to register with the SEC are federal covered advisers and do not register
with any state, although a notice filing may be required.
A state-registered investment adviser organized as a corporation is required to preserve a copy of
its articles of incorporation
A)
for 3 years after the end of the fiscal year in which the most recent entry was made.
B)
for 3 years after the termination of the enterprise.
C)
easily accessible for 2 years in the firm's principal office.
D)
for 5 years after the end of the fiscal year in which the most recent entry was made. correct
answers B.
NASAA's Model Rule on record keeping requires partnership articles and any amendments,
articles of incorporation, charters, minute books, and stock certificate books of the investment
adviser and of any predecessor, to be maintained in the principal office of the investment adviser
and preserved until at least 3 years after termination of the enterprise.
Each of the following statements about postregistration provisions is true EXCEPT
A)
the securities Administrator does not have the authority to conduct an onsite examination of an
investment adviser registered in his state if the adviser does not have an office in that state
B)
investment advisers must comply with recordkeeping rules
, C)
a registered investment adviser may be required to file advertisements
D)
a correcting amendment to the Form ADV must be filed with the Administrator if any
information filed becomes inaccurate or incomplete correct answers A.
Administrators have the authority to conduct an onsite examination of a registered investment
adviser, even if there is no place of business maintained in the Administrator's state. Under the
Act, Administrators may require the filing of advertising used by broker-dealers and investment
advisers, who must also comply with certain recordkeeping requirements and file correcting
amendments.
Under the Uniform Securities Act, persons providing investment advice do not have to register
as investment advisers if they have no place of business in the state and they
limit their clientele to individuals who meet the accredited investor standards
deal only with institutional investors
have 5 or fewer noninstitutional clients in the state during any 12-month period
deal only with other registered investment advisers
A)
II, III, and IV
B)
II only
C)
III and IV only
D)
I, II, III, and IV correct answers A.
If a person offering advice on securities has no place of business in a state and deals only with
institutional investors or other investment advisers, registration is not required. Also, if a person
has no place of business in a state and has 5 or fewer noninstitutional clients in the state during
any rolling 12-month period, they are not deemed to be investment advisers in that state under
the USA.
Please note that choice I specifies individuals who are accredited investors. Although
institutional accredited investors would qualify the adviser for the exemption, individuals do not.
Which of the following situations would require registration as an investment adviser?
A broker-dealer provided investment research services to a customer and charged a fee for the
service.
An agent of a broker-dealer recommends the purchase of ABC securities to a customer, who then
purchases 100 shares, and the agent earns a commission.
A broker-dealer has its agents prepare complete financial plans for customers for a nominal fee.
The plans recommend specific securities transactions, and when the customers place orders, the
agents earn commissions on those securities transactions.
A broker-dealer charges its customers for collecting dividends and maintaining their accounts in
addition to commission charges for transactions executed.
A)
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