Investment Advisers and Investment Adviser Representatives Flashcards
6 cards from real Series 63 – Uniform Securities Agent State Law Exam practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Investment Advisers and Investment Adviser Representatives flashcards as text
Under the USA, who qualifies as an 'investment adviser'?
Answer: Any person who, for compensation, engages in the business of advising others about securities
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.
Under the USA, which of the following is excluded from the definition of 'investment adviser'?
Answer: A newspaper with a general circulation that publishes securities recommendations as part of its regular financial news
Publishers of bona fide newspapers or general circulation publications are excluded from the investment adviser definition, as are their editors acting in that capacity.
Under the USA, which investment advisers must register with the SEC rather than the state?
Answer: Investment advisers with assets under management of $110 million or more, or those advising registered investment companies
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.
Under the USA, what is an 'investment adviser representative' (IAR)?
Answer: An individual who on behalf of an investment adviser provides investment advice, manages accounts, or solicits advisory clients
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.
Under the USA, the 'brochure rule' requires investment advisers to deliver what to clients?
Answer: A written disclosure document containing information about the adviser's services, fees, and background
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.
Under the USA, investment advisers with assets under management below what threshold must register with the state rather than the SEC?
Answer: $100 million
Investment advisers with AUM below $100 million generally must register with the state; those between $100 million and $110 million may choose either; those above $110 million must register with the SEC.
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. Exam facts are checked against the official sources listed below. Not reviewed by a subject-matter expert. Editorial policy
Sources & references
Exam facts on this page (fees, format, dates, passing scores) are checked against these official sources; the date is our last check. Editorial policy