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

Investment Adviser Regulations Flashcards

7 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 7 Investment Adviser Regulations flashcards as text

  1. Under the Investment Advisers Act of 1940, which of the following is NOT considered 'investment advice' that triggers registration requirements?

    Answer: Publishing a general-circulation financial newsletter with no individualized advice

    Publishers of bona fide general-circulation newsletters providing impersonal advice are excluded from the definition of investment adviser under the 'publisher exclusion.'

  2. A state-registered investment adviser wants to move to SEC registration. The adviser must demonstrate AUM of at least:

    Answer: $110 million

    An investment adviser must have at least $110 million in AUM to register with the SEC, though advisers managing $100–$110 million may register with either SEC or states.

  3. Which rule under the Advisers Act requires investment advisers to maintain a written code of ethics?

    Answer: Rule 204A-1

    Rule 204A-1 requires all SEC-registered investment advisers to adopt and enforce a written code of ethics covering personal securities transactions.

  4. An investment adviser representative (IAR) who moves from one state to another must:

    Answer: File a new Form U4 and meet the new state's requirements

    IARs must register in each state where they conduct advisory business, requiring a new Form U4 filing that meets the new state's licensing requirements.

  5. The 'brochure rule' under the Advisers Act requires advisers to deliver Form ADV Part 2A to prospective clients:

    Answer: At least 48 hours before signing an advisory contract, or at signing with a 5-day rescission right

    Rule 204-3 requires delivery of the brochure at least 48 hours before contract execution, or at signing if the client has a 5-day right to terminate without penalty.

  6. Under the Advisers Act, which action by an investment adviser constitutes a violation of the anti-fraud provisions of Section 206?

    Answer: Failing to disclose a material conflict of interest to a client

    Section 206 makes it unlawful for any investment adviser to engage in any act or practice that defrauds clients, including omitting material conflicts of interest.

  7. Which of the following advisers is EXEMPT from SEC registration under the Advisers Act?

    Answer: A venture capital fund adviser relying on the VC fund adviser exemption

    Advisers solely to venture capital funds may rely on the venture capital fund adviser exemption under Section 203(l) of the Advisers Act.

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