Chapter 9 MC Flashcards
Which of the following is the appropriate standard of conduct for a fiduciary?
acting as a prudent investor
Which of the following questions must be answered in the affirmative before the value of an account can be counted toward meeting the $100 million threshold for assets under management?
I. Is the account a securities portfolio?
II. Does the account receive continuous and regular supervisory or management services?
Both I and II
The Investment Advisers Act of 1940 generally applies to the activities of a financial services professional if which of the following questions is (are) answered in the affirmative?
I. Does the financial services professional provide advice or analysis about securities?
II. Is the financial services professional registered with FINRA to sell securities?
I only
All the following individuals may be required to have a fiduciary duty to the client EXCEPT
insurance agent
All the following statements concerning state regulation of investment advisers are correct EXCEPT
The application of state law has been eliminated with respect to investment adviser representatives of SEC-registered advisers.
All the following are exempt from regulation under the Investment Advisers Act of 1940 EXCEPT
Answer
a broker or dealer who receives special compensation for advisory services
Tests used in determining whether a financial advisor’s activities are subject to the provisions of the Investment Advisers Act of 1940 include all the following EXCEPT
ther commentary on general market conditions is provided
Financial advisors who are subject to SEC regulation have all the following responsibilities EXCEPT
recording conversations
Financial advisors who are subject to SEC regulation are not required to record conversations with their clients.
For SEC registration purposes, which of the following acts sets the limit for assets under management?
Answer
The Investment Advisers Supervision Coordination Act
