Which of the following actions by an investment adviser representative would be an unethical practice under the Uniform Securities Act?
Failing to disclose that recommended investments are being sold as principal by the representative’s own firm would be an unethical business practice
.
Which of the following advisers are exempt from registration under the Investment Advisers Act of 1940?
The investment adviser is prohibited from changing the terms of the advisory contract. … The Investment Advisers Act of 1940 also exempts from
registration advisers who only give advice on U.S. Government securities
; and advisers who wholly operate within one State, trading securities only in that State.
Which of the following actions by an investment adviser are prohibited under the Investment Advisers Act of 1940?
Section 206(3) of the Investment Advisers Act of 1940
1
makes it unlawful for any investment adviser,
directly or indirectly “acting as principal for his own account, knowingly to sell any security to or purchase any security from a client, or acting as broker for a person other than such client
, knowingly to effect any …
Which of the following actions by an agent of a broker dealer is prohibited?
An agent would be prohibited from
engaging in all of the business practices except selling a security short on one exchange and buying it back on another for the purpose of making a profit
. This is a trading strategy known as arbitrage and is legal.
Which of the following is not required to disclosed in an investment advisory contract under the Uniform Securities Act?
Which of the following is NOT required to be disclosed in an investment advisory contract under the Uniform Securities Act? The Uniform Securities Act does not require an investment advisory contract
to disclose the IA’s past performance
.
Which of the following persons is considered an investment adviser representative under the Uniform Securities Act?
A person who solicits advisory services
is an investment adviser representative. An accountant offering a separate service for giving securities advice would most likely need to register as an investment adviser representative.
Which order is not required to be retained as a record by a broker-dealer?
Which order is NOT required to be retained as a record by a broker-dealer?
Subscription order pursuant to a rights offerings
.
Who is subject to the Investment Advisers Act of 1940?
Investment Advisers Act of 1940
Since the Act was amended in 1996 and 2010, generally only advisers who
have at least $100 million of assets under management or advise a registered investment company
must register with the Commission.
What was the main purpose of the Investment Advisers Act of 1940?
The Investment Company Act of 1940 was passed in
order to establish and integrate a more stable financial market regulatory framework following the Stock Market Crash of 1929
. It is the primary legislation governing investment companies and their investment product offerings.
Do investment advisers need to register with the SEC?
While there are some exceptions, in general,
investment advisors with $100 million or greater in regulatory assets under management (AUM) must register with the SEC as Registered Investment Adviser
(RIA).
Who can make a loan to a registered investment adviser?
Who can make a loan to a Registered Investment Adviser? An
investment adviser registered with
the SEC under the Investment Advisers Act of 1940 changes from an S Corporation to a C Corporation.
Which of the following is prohibited in a margin account?
Which of the following is (are) prohibited in a margin account? In any account, whether it be a cash or margin account, a
customer cannot buy a security without intending to pay on settlement
, and cannot sell a security without intending to deliver on settlement. Short sales can only be effected in a margin account.
Which of the following are excluded from the definition of a broker-dealer?
Firms that trade exclusively with Professional Investors with No place of business in the state
are excluded (from the term broker-dealer)
Does the fact that an investment adviser is registered in a state mean that the investment adviser is qualified?
Does the fact that an Investment Advisor is registered in a state mean that the Investment Advisor is qualified? [A] Yes,
registration means
that the Investment Advisor is qualified as an IA.
Which of the following is are unethical business practices of investment advisers?
All of the following are unethical practices for investment advisers:
charging a client an unreasonable advisory fee
; guaranteeing a client that a specific result will be achieved with advice which will be rendered; recommending to a client an investment without reasonable grounds to believe the recommendation is …
Which of the following would be grounds for the denial revocation or suspension of a registration by an administrator?
Incomplete information on the registration statement,
unreasonable underwriting compensation, failure to pay filing fees, and a security subject to an administrative stop order in federal court
are all grounds for suspension, denial, or revocation of an issuer’s registration statement.
