Chapter 2 - Investment Adviser Representatives

Question 1

Investment adviser representatives are basically just investment advisers who chose to ______

Answer 1

work for a registered investment adviser, pretty much have same roles and responsibilities

Question 2

IARs have same exemptions to registration at the state-level as IAs,

Answer 2

• no office in that state

- five or fewer non-institutional clients

Question 3

IAs are responsible for for supervising _____ who work for them

Answer 3

IARs

Question 4

Partners, officers and directors of an IA are ________ registered as ______ when the IA registers

Answer 4

automatically registered as IARs

Question 5

An IAR application becomes effective at ______ on the _____ after application is initially filed.

Answer 5

Noon on the 30th day

Question 6

State admin has ____ to initiate a hearing based on application

Answer 6

90 days

Question 7

IAR registration remains effective until _____- on ________ in the year that it was filed.

Answer 7

midnight of December 31st

Question 8

IARs have a net capital requirement. T/F

Answer 8

False

Question 9

IAR post-registration requirements aren’t many, but would include

Answer 9

• no breaking the law
• renew in a timely manner
• continuing education (state level rules)

Question 10

Responsibility to file termination paperwork for an IAR falls on the _____, except when a _____ is federally covered, then the _____ is responsible to remind them.

Answer 10

IA, except when the IA is federally covered and then the IAR is required to remind them

Question 11

Notice of Termination needs to be filed

Answer 11

promptly (immediately)

Question 12

An IARs registration can be terminated or restricted for

Answer 12

• denial by admin
• recovation if public harm
• suspension for less serious infractions
• withdrawal (can use Form U-5 to withdraw, becomes effective 30 days after submission, still under jurisdiction for 1 year)
• restriction/limitation to certain setttings