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 would not meet the definition of an investment adviser representative?
17. A. An employee under the direct supervision of the investment adviser
18. B. Clerical or ministerial staff
19. C. An investment adviser representative with fewer than five clients in the state where they have their office
20. D. An agent of a broker-dealer who receives a fee for telling a client to not purchase any investments at the current time
21. 5. All of the following must be filed on behalf of an investment adviser representative at the appropriate time except:
22. A. Form ADV
23. B. Form U4
24. C. Form U5
25. D. Notice of Termination
26. 6. All of the following are true of an investment adviser representative’s registration except:
27. A. It is effective 45 days after filing.
28. B. It expires December 31 of each year.
29. C. It can be suspended for filing an incomplete application.
30. D. It can be revoked for failing to meet continuing education requ