Practice Exam #1
- 1. An employee of an investment advisory firm who provides advice and solicits new customers must be registered as a(n):
- A. Investment adviser
- B. Investment adviser representative
- C. Broker-dealer
- D. Agent
- 2. All of the following may result in mandatory federal registration for an investment adviser except:
- A. Operating as a mid-sized investment adviser with clients in 39 states
- B. Working as a pension plan consultant with $25 million in employee accounts
- C. Serving as an adviser to registered investment companies
- D. Sharing an office with an affiliated SEC-registered adviser
- 3. All of the following are true of an investment adviser’s registration except:
- A. It expires one year after it was filed
- B. It becomes effective 30 days after filing
- C. They must file a consent to service of process
- D. They must meet net capital requirements
- 4. Which of the following are actions an administrator might take against an investment adviser in violation of the law?
- I. Suspension
- II. Withdrawal
- III. Limitation
- IV. Revocation
- A. I and IV
- B. I and III
- C. I, II, and III
- D. I, III, and IV
- 5. Which of the following would not meet the definition of an investment adviser representative?
- A. An employee under the direct supervision of the investment adviser
- B. Clerical or ministerial staff
- C. An investment adviser representative with fewer than 5 clients in the state that they have their office
- D. An agent of a broker-dealer who receives a fee for telling a client to not purchase any investments at the current time
- 6. All of the following must be filed on behalf of an investment adviser representative at the appropriate time except:
- A. Form ADV
- B. Form U-4
- C. Form U-5
- D. Notice of Termination
- 7. All of the following are true of