Combined investment adviser and securities agent law concepts tested on the Series 66 exam.
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- Under the Investment Advisers Act of 1940, what three elements define an investment adviser?
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Compensation, being in the business of advising, and giving advice about securities- What is the de minimis exemption from state investment adviser registration?
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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?
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$100 million or more in assets under management- Who administers the Uniform Securities Act within each state?
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The state Administrator- Under the Uniform Securities Act, what is an agent?
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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?
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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.
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incidental- What is an investment adviser representative (IAR)?
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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?
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Duty of care and duty of loyalty- What document is commonly called an adviser's brochure?
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Form ADV Part 2- When must an adviser deliver its brochure if it is given less than 48 hours before entering the contract?
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The client gets 5 business days to terminate the contract without penalty- What does custody mean for an investment adviser?
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Holding client funds or securities, or having authority to withdraw them- Where must an adviser with custody keep client funds and securities?
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With a qualified custodian- What extra requirement applies to most advisers who have custody of client assets?
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An annual surprise audit by an independent public accountant- What financial requirement can a state-registered adviser meet instead of maintaining minimum net worth?
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Posting a surety bond
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