Combined investment adviser and securities agent law concepts tested on the Series 66 exam.
39 cards · basic cards · AI-written, checked twice. Edit anything.
- Under the Investment Advisers Act of 1940, what three elements define an investment adviser?
- Compensation, being in the business of advising, and giving advice about securities
- What is the de minimis exemption from state investment adviser registration?
- No place of business in the state and fewer than 6 retail clients there in the past 12 months
- What AUM threshold generally requires an investment adviser to register with the SEC instead of the states?
- $100 million or more in assets under management
- Who administers the Uniform Securities Act within each state?
- The state Administrator
- Under the Uniform Securities Act, what is an agent?
- An individual who represents a broker-dealer or issuer in effecting securities transactions
- Which two types of firms are excluded from the definition of broker-dealer under the USA?
- Banks and savings institutions
- Lawyers, accountants, teachers, and engineers are excluded from the definition of investment adviser when their advice about securities is only ____ to their profession.
- incidental
- What is an investment adviser representative (IAR)?
- An individual who works for an investment adviser and gives advice, manages accounts, or solicits advisory business
- What are the two components of an investment adviser's fiduciary duty?
- Duty of care and duty of loyalty
- What document is commonly called an adviser's brochure?
- Form ADV Part 2
- When must an adviser deliver its brochure if it is given less than 48 hours before entering the contract?
- The client gets 5 business days to terminate the contract without penalty
- What does custody mean for an investment adviser?
- Holding client funds or securities, or having authority to withdraw them
- Where must an adviser with custody keep client funds and securities?
- With a qualified custodian
- What extra requirement applies to most advisers who have custody of client assets?
- An annual surprise audit by an independent public accountant
- What financial requirement can a state-registered adviser meet instead of maintaining minimum net worth?
- Posting a surety bond