Series 66 – Uniform Combined State Law Exam Investment Adviser Registration & Licensing 1 — Questions and Answers
Question 1: Under the Uniform Securities Act, an investment adviser with assets under management below what threshold must register with the state rather than the SEC?
- $25 million
- $100 million (Correct answer)
- $50 million
- $10 million
Correct answer: $100 million
Investment advisers with less than $100 million in AUM must register with the state unless an exemption applies.
Question 2: Which of the following is NOT generally required on an investment adviser registration application under the Uniform Securities Act?
- Form of organization
- Business history of the firm
- Personal credit score of each principal (Correct answer)
- Qualifications of associated persons
Correct answer: Personal credit score of each principal
Personal credit scores are not a standard required disclosure on investment adviser registration applications.
Question 3: An investment adviser representative (IAR) must register in a state if they have how many or more retail clients in that state within a 12-month period?
- 3
- 5 (Correct answer)
- 10
- 1
Correct answer: 5
An IAR with more than 5 retail clients in a state within 12 months must register in that state.
Question 4: Which form is used by investment adviser representatives to register with state securities regulators?
- Form ADV
- Form U4 (Correct answer)
- Form BD
- Form U5
Correct answer: Form U4
Form U4 (Uniform Application for Securities Industry Registration) is used to register investment adviser representatives.
Question 5: Under the USA, which of the following investment advisers is exempt from state registration?
- Advisers with no place of business in the state and fewer than 6 clients in the state (Correct answer)
- Advisers managing only pension funds
- Advisers who charge flat fees only
- Advisers registered in any other state
Correct answer: Advisers with no place of business in the state and fewer than 6 clients in the state
An adviser with no place of business in the state and fewer than 6 clients there qualifies for the de minimis exemption from state registration.
Question 6: Under the Uniform Securities Act, the registration of an investment adviser is effective for what period?
- 2 years
- Until revoked or until December 31 of the year of registration (Correct answer)
- 5 years
- 3 years
Correct answer: Until revoked or until December 31 of the year of registration
Investment adviser registrations under the USA are effective until December 31 of the year in which they were granted, unless sooner revoked.
Series 66 – Uniform Combined State Law Exam Investment Adviser Registration & Licensing 1
Under the Uniform Securities Act, an investment adviser with assets under management below what threshold must register with the state rather than the SEC?