Series 63 – Uniform Securities Agent State Law Exam Investment Advisers and Investment Adviser Representatives

Question 1

Under the USA, who qualifies as an 'investment adviser'?

Accepted Answer

Any person who, for compensation, engages in the business of advising others about securities

Answer

Under the USA, an investment adviser is any person who, for compensation, engages in the business of advising others about investing in, purchasing, or selling securities.

Question 2

Under the USA, which of the following is excluded from the definition of 'investment adviser'?

Accepted Answer

A newspaper with a general circulation that publishes securities recommendations as part of its regular financial news

Answer

Publishers of bona fide newspapers or general circulation publications are excluded from the investment adviser definition, as are their editors acting in that capacity.

Question 3

Under the USA, which investment advisers must register with the SEC rather than the state?

Accepted Answer

Investment advisers with assets under management of $110 million or more, or those advising registered investment companies

Answer

Investment advisers with $110 million or more in AUM, or those who advise registered investment companies, are required to register with the SEC as federal covered advisers.

Question 4

Under the USA, what is an 'investment adviser representative' (IAR)?

Accepted Answer

An individual who on behalf of an investment adviser provides investment advice, manages accounts, or solicits advisory clients

Answer

An IAR is an individual supervised by or associated with an investment adviser who performs advisory functions such as giving advice, managing accounts, or soliciting clients.

Question 5

Under the USA, the 'brochure rule' requires investment advisers to deliver what to clients?

Accepted Answer

A written disclosure document containing information about the adviser's services, fees, and background

Answer

The brochure rule requires investment advisers to provide clients with a written disclosure brochure (Part 2 of Form ADV) containing material information about the firm.

Series 63 – Uniform Securities Agent State Law Exam Practice Test

Series 63 – Uniform Securities Agent State Law Exam Practice Test

Series 63 – Uniform Securities Agent State Law Exam Investment Advisers and Investment Adviser Representatives