IACCP 2 General Advisors Act QUESTIONS WITH COMPLETE SOLUTIONS

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Investment Adviser Correct Answer: Person or entity that is in the business of providing investment advice about securities Fiduciary Correct Answer: an investment adviser owes its clients undivi... ded loyalty and may not engage in activity that conflicts with a client's interest without the client's consent Who is required to register with the SEC? Correct Answer: 1) an investment advisor under Section 202(a)(11) of the Advisors Act 2) Not excepted from the IA definition 3) Not exempt from Commission registration & 4) not prohibited from Commission registration What are the 3 elements of the IA definition must be satisfied to be covered under the Act? Correct Answer: The person or firm must be (1) for compensation (2) engaged in the business (3) of providing advice to others or issuing reports or analyses regarding securities Who is excluded from registration requirements? Correct Answer: Domestic Banks Lawyers, accounts, anyone whose advisory services is solely incidental to their profession Broker and dealers if they do not receive any special compensation Publishers of bonafide newspapers, news magazines, and business publications Persons and firms whose advice/reports are related only to direct obligations of the US Family offices Who is prohibited from SEC registration? Correct Answer: Intrastate Advisors Advisers to only insurance companies Private fund advisors, foreign private advisors, and venture capital fund advisers Charitable organizations and employees Church plans Commodity Trading advisors Family Offices Intrastate advisor Correct Answer: An advisor whose clients are within the same state as the adviser's principal business office AND that does not provide advice or issue reports about securities listed on any national exch [Show More]

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