Series 63: Practice Exam #1

Practice Exam #1

1. 1. An employee of an investment advisory firm who provides advice and solicits new customers must be registered as a(n):
2. A. Investment adviser
3. B. Investment adviser representative
4. C. Broker-dealer
5. D. Agent
6. 2. All of the following may result in mandatory federal registration for an investment adviser except:
7. A. Operating as a mid-sized investment adviser with clients in 39 states
8. B. Working as a pension plan consultant with $25 million in employee accounts
9. C. Serving as an adviser to registered investment companies
10. D. Sharing an office with an affiliated SEC-registered adviser
11. 3. All of the following are true of an investment adviser’s registration except:
12. A. It expires one year after it was filed
13. B. It becomes effective 30 days after filing
14. C. They must file a consent to service of process
15. D. They must meet net capital requirements
16. 4. Which of the following are actions an administrator might take against an investment adviser in violation of the law?
17. I. Suspension
18. II. Withdrawal
19. III. Limitation
20. IV. Revocation
21. A. I and IV
22. B. I and III
23. C. I, II, and III
24. D. I, III, and IV
25. 5. Which of the following would not meet the definition of an investment adviser representative?
26. A. An employee under the direct supervision of the investment adviser
27. B. Clerical or ministerial staff
28. C. An investment adviser representative with fewer than 5 clients in the state that they have their office
29. D. An agent of a broker-dealer who receives a fee for telling a client to not purchase any investments at the current time
30. 6. All of the following must be filed on behalf of an investment adviser representative at the appropriate time except:
31. A. Form ADV
32. B. Form U-4
33. C. Form U-5
34. D. Notice of Termination
35. 7.