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
.
What constitutes taking custody under the nasaa rule for investment advisers?
What constitutes “taking custody” under the NASAA rule for investment advisers? … As a general rule, advisers that take custody
must post a higher net worth, must send out quarterly account statements, must keep customer funds or securities at a qualified custodian, and must be audited annually
.
Which of the following is an acceptable investment advisory contract provision 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
.
What do the antifraud provisions of the Uniform Securities Act provide for?
Securities are sold by a non-registered person who is not required to be registered under the Uniform Securities Act. Answer: DThe antifraud provisions of the Uniform Securities Act apply
to all offers and sales of securities, whether the person selling them is exempt from the Act or not
.
Which of the following situations would constitute an assignment of an investment advisory contract requiring client approval?
Which of the following situations would constitute an assignment of an investment advisory contract requiring client approval? …
An investment advisory contract may not be assigned without a client’s consent
. Anything that causes a change in the adviser’s management or control is considered an assignment.
Which action is a prohibited practice under the Uniform Securities Act?
Excessive trading activity in an account
is called churning and is a prohibited practice. Unlike agents, investment adviser representatives are not allowed to share in the capital appreciation or depreciation of their customers’ accounts.
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 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
.
What can investment advisers include in their contracts with clients?
The investment advisory contract must disclose the manner in which the adviser will be compensated. The contract must also include
a statement that the adviser may not assign the contract to another party unless
the client consents and may not be compensated based on a share of capital gains. What is a sale?
Which of the following is the most appropriate investment for an estate account?
Which of the following is the MOST appropriate investment for an estate account? The objective of an estate account is to preserve principal and to effect a timely distribution of estate assets. The best investment of the choices offered is
Treasury Bills
– they are liquid and have little market risk.
Who does the Uniform Securities Act apply to?
The Uniform Securities Act is a model law created as a starting point for state-level securities regulation. The purpose of the Uniform Securities Act is to
deal with securities fraud at the state level
and to assist the Securities and Exchange Commission (SEC) in enforcement and regulation.
Which of the following securities are exempt from the registration provisions of the USA?
The securities exempt from the registration requirements of the Uniform Securities Act include
securities issued by the U.S. or Canadian government or any state, province, or political subdivision
; securities issued by any foreign government with which the U.S. has diplomatic relations; securities issued by banks, …
Who does the Securities Exchange Act of 1934 apply to?
The Securities Exchange Act requires disclosure of important information by
anyone seeking to acquire more than 5 percent of a company’s securities by direct purchase or tender offer
. Such an offer often is extended in an effort to gain control of the company. If a party makes a tender offer, the Williams Act governs.
Can I give financial advice without a license?
While there is not a specific
licensing
requirement for
financial
advisors, they are generally required to have various securities
licenses
to sell investment products.
Do all investment companies need to register with the SEC?
If an investment company is organized or otherwise created under the laws of the United States or of a State, meets the definition of an investment company, and cannot rely on an exception or an exemption from registration, generally
it must register with the Commission under the Investment Company Act and must
…
Are all investment advisors required 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).
