Investment adviser law and ethics vocabulary tested on the Series 65 exam.
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- NASAA
- North American Securities Administrators Association
- What is the Uniform Securities Act?
- A model law adopted, with modifications, by states to regulate securities activity within that state
- Under the Uniform Securities Act, who is the 'Administrator'?
- The state official or agency responsible for administering and enforcing the state's securities law
- Under state law, what is an 'investment adviser'?
- A person who, for compensation, engages in the business of advising others on the value of securities or the advisability of investing in securities
- IAR
- Investment Adviser Representative
- What is the de minimis exemption for investment adviser state registration?
- An adviser with no place of business in a state and fewer than 6 retail clients there in the preceding 12 months is exempt from registering in that state
- At what AUM level does an adviser generally register with the SEC instead of the states?
- $100 million or more in assets under management
- What is the AUM range for a mid-size adviser that generally registers at the state level?
- Between $25 million and $100 million
- What AUM threshold generally requires state (not SEC) registration for a smaller adviser?
- Less than $25 million in assets under management
- AUM
- Assets Under Management
- What information does Form ADV Part 1 contain?
- Structured business, ownership, and disciplinary information filed electronically, used by regulators
- What is Form ADV Part 2 commonly called, and what does it contain?
- The 'brochure'; a plain-English narrative describing the adviser's services, fees, and conflicts of interest
- IARD
- Investment Adviser Registration Depository
- When must an adviser deliver its brochure to a client under the Brochure Rule?
- Before or at the time of entering into an advisory contract
- If a brochure is delivered less than 48 hours before the advisory contract is signed, what right does the client have?
- The right to terminate the contract without penalty within 5 business days