Practice Exam #1
1. An employee of an investment advisory firm who provides advice and solicits new customers must be registered as a(n):
A. Investment adviser
B. Investment adviser representative
C. Broker-dealer
D. Agent
2. All of the following conditions could result in federal registration for an investment advisor except:
A. Operating as a mid-sized investment adviser with clients in 39 states
B. Working as a pension plan consultant with $25 million in employee accounts
C. Serving as an adviser to registered investment companies
D. Sharing an office with an affiliated SEC-registered adviser
3. All of the following are true of an investment adviser’s registration except:
A. Unless renewed, it expires one year after it is filed.
B. It becomes effective 30 days after filing.
C. As part of the registration process, the firm must file a Form ADV.
D. In order to register, the firm must meet net capital requirements.
4. Which of the following would not be considered an investment adviser representative?
A. Any employee under the direct supervision of the investment adviser
B. Clerical or ministerial staff
C. An investment adviser representative with fewer than five clients in the state where the investment adviser has its office
D. An agent of a broker-dealer who receives a fee for telling a client to not purchase any investments at the current time
5. All of the following must be filed on behalf of an investment adviser representative at the appropriate time except:
A. Form ADV
B. Form U4
C. Form U5
D. Notice of Termination
6. All of the following are true of an investment adviser representative’s registration except:
A. It does not take effect until 45 days after it is filed.
B. It expires December 31 of each year.
C. It can be suspended for filing an incomplete application.
D. It can be revoked for failing to meet continuing education requirements.
7. Which of the follo