Exercise
Answer TRUE or FALSE
1. _____Partners, officers, and directors of an investment adviser are required to register as IARs only if they regularly give investment advice.
2. _____ IARs who work for federal covered investment advisers register at the federal level.
3. _____IARs are not subject to net capital requirements.
4. _____IARs are subject to most of the same post-registration requirements as the firms for which they work.
5. _____In some cases, IARs are responsible for notifying a state administrator in the case of their termination.
Answers
1. False. Partners, officers, and directors of an IA are automatically registered as IARs when the firm registers.
2. False. IARs only register at the state level. They cannot register federally.
3. True. Unlike the IAs for which they work, IARs never have to meet net capital requirements.
4. False. While IAs have many post-registration requirements, IARs are typically only required to engage in some sort of continuing education requirement during each renewal period.
Suggested Notecards
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• Who uses the Uniform Securities Act?
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