Series 66 – Uniform Combined State Law Exam Investment Adviser Registration & Licensing 2

Question 1

Which of the following best describes an 'investment adviser' under the Uniform Securities Act?

Accepted Answer

A person who, for compensation, engages in the business of advising others on securities

Answer

Any person who provides advice about municipal bonds for a fee

Answer

Any broker-dealer who recommends securities

Answer

A person who publishes a general financial newsletter

Question 2

A state-registered investment adviser must keep records for a minimum of how many years under the Uniform Securities Act?

Accepted Answer

5 years

Answer

2 years

Answer

3 years

Answer

7 years

Question 3

Which of the following individuals is EXCLUDED from the definition of 'investment adviser' under the Uniform Securities Act?

Accepted Answer

A bank giving advice as part of its regular banking activities

Answer

A financial planner who charges fees for advice

Answer

A portfolio manager managing separate accounts

Answer

A person advising pension funds for a fee

Question 4

When must an investment adviser disclose its Part 2 brochure (Form ADV Part 2) to a client?

Accepted Answer

At least 48 hours before entering into an advisory contract, or at contract signing with a 5-day withdrawal right

Answer

Within 30 days after entering into a contract

Answer

Only upon client request

Answer

Annually at the start of each calendar year

Question 5

Under the Uniform Securities Act, which of the following is a prohibited practice for investment advisers?

Accepted Answer

Assigning the advisory contract without client consent

Answer

Charging performance-based fees to qualified clients

Answer

Taking custody of client funds with proper notice

Answer

Recommending securities not listed on a national exchange

Question 6

Which of the following is TRUE regarding investment adviser surety bonds under the Uniform Securities Act?

Accepted Answer

Advisers who take custody or have discretion may be required to post a surety bond

Answer

All investment advisers must post a surety bond regardless of size

Answer

Surety bonds replace net capital requirements

Answer

Only federal-covered advisers must post surety bonds