Investment Adviser Registration & Licensing Flashcards
6 cards from real Series 66 – Uniform Combined 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 Adviser Registration & Licensing flashcards as text
Which of the following best describes an 'investment adviser' under the Uniform Securities Act?
Answer: A person who, for compensation, engages in the business of advising others on securities
Under the USA, an investment adviser is a person who, for compensation, is in the business of advising others about securities.
A state-registered investment adviser must keep records for a minimum of how many years under the Uniform Securities Act?
Answer: 5 years
State-registered investment advisers are generally required to maintain records for a minimum of 5 years.
Which of the following individuals is EXCLUDED from the definition of 'investment adviser' under the Uniform Securities Act?
Answer: A bank giving advice as part of its regular banking activities
Banks are specifically excluded from the definition of investment adviser under the Uniform Securities Act.
When must an investment adviser disclose its Part 2 brochure (Form ADV Part 2) to a client?
Answer: At least 48 hours before entering into an advisory contract, or at contract signing with a 5-day withdrawal right
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.
Under the Uniform Securities Act, which of the following is a prohibited practice for investment advisers?
Answer: Assigning the advisory contract without client consent
Assigning an investment advisory contract to another adviser without client consent is prohibited under the USA.
Which of the following is TRUE regarding investment adviser surety bonds under the Uniform Securities Act?
Answer: Advisers who take custody or have discretion may be required to post a surety bond
States may require investment advisers with custody or discretionary authority over client assets to post a surety bond.
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