WMS Study Guide 2026
Everything you need to pass the WMS exam in one place: the exam format, every topic to study, real practice questions with explanations, flashcards, and full-length practice tests. Free, no sign-up needed.
📋 WMS Exam Format at a Glance
📚 WMS Topics to Study (63)
✍️ Sample WMS Questions & Answers
1. The SEC's Regulation S-P requires financial institutions to provide clients with a privacy notice describing how their personal information is used. This notice must be given:
Regulation S-P mandates that firms deliver an initial privacy notice when the customer relationship is established and an annual notice each year thereafter.
2. Which charitable giving strategy allows a donor to receive a current income tax deduction, provides income to the donor for life, and transfers the remaining assets to charity upon death?
A CRAT provides fixed annuity payments to the donor for life or a term, with the remainder passing to charity, and generates a partial income tax deduction at funding.
3. Which type of client data is classified as 'quantitative' in the financial planning data-gathering process?
Quantitative data includes measurable financial information such as income, net worth, account balances, and insurance coverage amounts.
4. Which hedging strategy would BEST protect a client with a large unrealized gain in a single stock from downside risk while deferring capital gains taxes?
Protective puts provide downside protection without triggering a taxable sale event, preserving the position while hedging the risk.
5. Which of the following best describes a 'material non-public information' (MNPI) breach in the context of wealth management compliance?
Trading on MNPI obtained from insiders constitutes insider trading and violates Section 10(b) of the Securities Exchange Act and SEC Rule 10b-5.
6. An investment adviser that inadvertently omits a material fact from a client's advisory agreement may violate which anti-fraud provision?
Section 206 of the Investment Advisers Act broadly prohibits investment advisers from engaging in any fraudulent, deceptive, or manipulative practice, including material omissions.