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
Under the Uniform Securities Act, which action can a state securities Administrator take against an investment adviser?
Answer: Deny, suspend, or revoke registration after notice and opportunity for hearing
The state Administrator can deny, suspend, or revoke registration, but generally must provide notice and a hearing opportunity first.
An investment adviser who has discretionary authority over client accounts but does NOT take custody of funds or securities is subject to which requirement?
Answer: Must obtain written client authorization before exercising discretion
Discretionary authority requires written client authorization before the adviser can act on behalf of the client.
Which of the following is considered an investment adviser representative (IAR) under the Uniform Securities Act?
Answer: A supervised person who makes securities recommendations to clients for compensation
An IAR is a supervised person who makes recommendations, manages client accounts, or solicits advisory services.
Under the USA, an investment adviser's net capital requirement is enforced by:
Answer: The state securities Administrator
For state-registered investment advisers, net capital requirements are set and enforced by the state securities Administrator.
Which of the following statements about 'federal covered advisers' is CORRECT under the USA?
Answer: They are exempt from state registration but states may require notice filings and fees
Federal covered advisers register only with the SEC but states may require notice filings (filing Form ADV and paying fees).
Under the Uniform Securities Act, which of the following actions automatically triggers the need to update Form U4 within 30 days?
Answer: A felony conviction
A felony conviction (or certain other material events) requires prompt amendment of Form U4 within 30 days.
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