Series 63: Chapter 1 Practice Questions

Taken from our Series 63 Online Guide

Chapter 1 Practice Questions

1. All of the following are exempt from registration under the Investment Advisers Act of 1940 except:

A. A broker-dealer that charges a fee for investment advice

B. A publisher that charges a fee to write a column about investments

C. A lawyer that gives investment advice as part of overseeing a client’s estate

D. A teacher who is paid to teach a class that offers instruction on how to construct a portfolio

2. Which of the following would most likely be considered an investment adviser?

A. A lawyer overseeing the management of a client’s trust

B. A college professor who teaches a class on investing

C. A personal finance author who focuses on planning for retirement

D. A publisher of a subscription-based online newsletter that includes an interactive component where investors can enter information and receive advice specific to their needs

3. Which of the following would not be subject to state registration as an investment adviser?

I. An investment adviser representative

II. An investment adviser with $150 million in client assets under management

III. A financial planner that charges a fee for providing investment advice

IV. An individual who regularly gives investment advice for a fee but is not employed by an investment advisory firm

A. I and II

B. I and III

C. III and IV

D. II and IV

4. Which of the following would not allow an investment adviser with no office in a state to avoid registration in that state?

A. The de minimis rule

B. The adviser’s only clients in the state are institutional clients.

C. The firm’s assets under management did not exceed $100 million.

D. The adviser had no more than five non-institutional clients in the state.

5. The NASAA recommended net capital requirement for an adviser who has discretion but not custody over a client account is:

A. $0

B. $500

C. $10,000

D. $35,000

6. Accor

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