Question 1

Record Keeping Rules -- Does an IA have to keep journals of cash receipts and disbursements and other records of original entry?

Accepted Answer

Yes.

Question 2

Record Keeping Rules -- Does an IA have to keep ledgers showing assets, liabilities, reserves, capital, income, and expenses?

Accepted Answer

Yes.

Question 3

Record Keeping Rules -- Does an IA have to keep a memorandum of each order (buy or sell) including terms and conditions of the order, name of person who recommended the transaction, account number, date, and name of B-D or bank who executed the order?

Accepted Answer

Yes.

Question 4

Record Keeping Rules -- Is the customer name required on the order ticket?

Accepted Answer

No.

Question 5

Record Keeping Rules -- Is the IA required to keep a record of all checkbooks, bank records, and bills relating to the business?

Accepted Answer

Yes.

Question 6

Record Keeping Rules -- Is the IA required to keep a log of all telephone calls received?

Accepted Answer

No.

Question 7

Record Keeping Rules -- Is the IA required to keep a record of originals of all communications received and copies of all communications sent to the public or clients relating to any investments or recommendations?

Accepted Answer

Yes.

Question 8

Record Keeping Rules -- Is the IA required to keep a record of all discretionary authorizations and powers of attorney?

Accepted Answer

Yes.

Question 9

Record Keeping Rules -- Is the IA required to keep a copy of each notice, circular, advertisement, or OTHER communication circulated to 10 or MORE persons?

Accepted Answer

Yes.

Question 10

Record Keeping Rules -- Does keeping a copy of each “notice, circular, advertisement, or OTHER communication” include seminar materials?

Accepted Answer

Yes.

Question 11

Record Keeping Rules -- Is the IA required to keep a record of every transaction in which the investment advisor acquires beneficial ownership of a security?

Accepted Answer

Yes.

Question 12

Record Keeping Rules -- Is the IA required to keep a copy of ALL written disclosure statements sent to customers AND signed written receipts received from customers stating that they received those documents?

Accepted Answer

Yes.

Question 13

Record Keeping Rules -- Is the IA required to keep all records pertaining to the calculation of performance or rate of return where recommendations are distributed?

Accepted Answer

Yes.

Question 14

Additional Custody Requirements -- If an investment advisor has custody of client funds/securities, what information must be contained in a journal and separate ledger?

Accepted Answer

1). purchases 2). sales 3). receipts 4). deliveries of securities

Question 15

Additional Custody Requirements -- If an investment advisor has custody of client funds/securities, are copies of all confirmations required to be kept?

Accepted Answer

Yes.

Ch 06(8) Federal Acts | Investment Advisor Record Keeping Rules Flashcards

Investment Advisors Act of 1940 — Detail the Investment Advisor Record Keeping Rules.

Brainscape's Knowledge GenomeTM

Ch 06(8) Federal Acts | Investment Advisor Record Keeping Rules Flashcards

Investment Advisors Act of 1940 — Detail the Investment Advisor Record Keeping Rules.

Brainscape's Knowledge Genome^TM