Series 66 – Uniform Combined State Law Exam Professional Development & Standards 4

Question 1

After a material change in an agent's disclosure information (such as a new customer complaint or disqualifying event), Form U4 must generally be amended within:

Accepted Answer

30 days

Answer

Form U4 must be amended promptly and generally no later than 30 days after learning of the facts requiring the update.

Question 2

Under the NASAA model rule on investment adviser representative continuing education, an IAR must complete how many credits each reporting period?

Accepted Answer

12 total: 6 Products and Practice and 6 Ethics and Professional Responsibility

Answer

IARs must complete 12 credits annually, split evenly between Products & Practice and Ethics & Professional Responsibility.

Question 3

An IAR fails to complete required continuing education by the deadline. The most likely result is that the IAR:

Accepted Answer

Becomes CE inactive and may not act as an IAR until requirements are completed

Answer

A non-compliant IAR's registration is treated as CE inactive, so the IAR cannot conduct advisory business until the credits are completed.

Question 4

Under the NASAA model recordkeeping rule, an investment adviser must generally keep required books and records for:

Accepted Answer

Five years from the end of the fiscal year of the last entry, the first two in the principal office

Answer

Records must be maintained for five years after the fiscal year of the last entry, the first two years in an appropriate office of the adviser.

Question 5

An investment adviser has custody of client assets. Which is generally required?

Accepted Answer

Assets held at a qualified custodian, with account statements sent to clients at least quarterly and, absent exceptions, an annual surprise examination

Answer

Advisers with custody must use qualified custodians, ensure clients get statements at least quarterly, and typically undergo an annual surprise exam by an independent accountant.

Series 66 – Uniform Combined State Law Exam Practice Test

Series 66 – Uniform Combined State Law Exam Practice Test

Series 66 – Uniform Combined State Law Exam Professional Development & Standards 4