Practice Test Geeks(CIC) Certified Investment Counselor Practice Test
← All CIC Flashcard Decks

CIC - Certified Investment Counselor Securities Law and Regulatory Compliance Questions and Answers Flashcards

6 cards from real CIC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 6 CIC - Certified Investment Counselor Securities Law and Regulatory Compliance Questions and Answers flashcards as text

  1. Under the Investment Advisers Act of 1940, an adviser with assets under management of $110 million or more must register with:

    Answer: The SEC

    Advisers managing $110 million or more in AUM are required to register with the SEC under the Investment Advisers Act of 1940.

  2. SEC Form ADV Part 2 is required to be delivered to clients primarily to:

    Answer: Provide clients with a 'brochure' disclosing the adviser's business practices, fees, and conflicts

    Form ADV Part 2 (the 'brochure') discloses material information about the adviser's services, fees, conflicts of interest, and disciplinary history to clients.

  3. The Securities Exchange Act of 1934 primarily regulates:

    Answer: The trading of previously issued securities in secondary markets

    The Securities Exchange Act of 1934 governs secondary market trading, broker-dealers, and established the SEC.

  4. Rule 10b-5 under the Securities Exchange Act of 1934 prohibits:

    Answer: Fraud, misrepresentation, and insider trading in connection with securities transactions

    Rule 10b-5 is the SEC's primary anti-fraud rule, prohibiting any fraudulent, deceptive, or manipulative act in connection with the purchase or sale of securities.

  5. Under the Investment Company Act of 1940, a mutual fund is legally classified as a:

    Answer: Registered investment company

    Mutual funds are registered investment companies under the Investment Company Act of 1940, subject to its regulatory requirements.

  6. A 'no-action letter' from the SEC staff provides:

    Answer: Staff assurance that it will not recommend enforcement action if the described activities are conducted as stated

    An SEC no-action letter represents the informal opinion of SEC staff that they would not recommend enforcement, but it is not legally binding.

How this page was made: written with AI tools and published by Nathan Beja, founder of Practice Test Geeks, who is responsible for its content. We have not yet matched this exam's facts to an official source, so confirm fees, dates and rules with the exam body. Not reviewed by a subject-matter expert. Editorial policy