Chapter1 : Investment Advisor

Question 0

Inv company act of 1940

Answer 0

Regulates mutual funds and pooled funds of smaller investors

Question 1

Investment advisors act of 1940

Answer 1

Protect the public by requiring those who provide advise to register w/ sec

Question 2

Investment Advisor (IA)

Answer 2

All 3 must be present 1: giving advice 2: being in the business of giving advice 3: being compensated for advice

Question 3

Exclusions from IA

Answer 3

Banks, bank holding companies; professionals that receive no special compensation; publisher of noted publications; broker-deals and reg reps

Question 4

Exempt from IA

Answer 4

A person meets IA standard but is exempt from registration

Question 5

IA770 1981

Answer 5

Defines definition of advisor

Question 6

IA770 securities? Business of advice?

Answer 6

Life insurance and fixed securities are not securities ; Hold yourself out as a fin planner or IA

Question 7

IA 770 Advice? Compensation?

Answer 7

Recommending stocks instead of securities ; fees, commission or favor

Question 8

IA 1092 1987

Answer 8

Refines IA770 adds pension consultants, advisors to athlete and entertainers, firms that recommend ia’s , reg reps who set up separate business.

Question 9

Uniform securities act

Answer 9

Must register to state, in every state they do business

Question 10

Title III supervisory coordination act of 1997

Answer 10

Divides nsmia into state and federally covered registration and oversight.

Question 11

AUM

Answer 11

Assets Under Management

Question 12

To register with sec

Answer 12

File adv parts 1&2 1, basic info 2, disclosures “brochure rule”

Question 13

IAR’s

Answer 13

Recommending or giving advice, managing client accounts or portfolios, soliciting clients, supervising those who perform any of these.