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

Under the USA, an investment adviser is a person who, for compensation, is in the business of advising others about securities.

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

State-registered investment advisers are generally required to maintain records for a minimum of 5 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

Banks are specifically excluded from the definition of investment adviser under the Uniform Securities Act.

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

The brochure must be delivered at least 48 hours before contract execution, or at signing if the client has a 5-day right to cancel.

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

Assigning an investment advisory contract to another adviser without client consent is prohibited under the USA.

Series 66 – Uniform Combined State Law Exam Practice Test