GPFP - 10

Question 0

An investment advisor who is subject to the registration requirement is anyone who is:

Answer 0

1) in the business
2) of providing advice about securities
3) for compensation

Question 1

Which act requires registration with the SEC by certain investment advisors?

Answer 1

Investment advisers of 1940

Question 2

A security includes almost any type of financial investment with what notable exception?

Answer 2

Most fixed life insurance and annuity products

Question 3

Which act does not require you to be a registered investment advisor if: an advisor whose only clients are venture capital funds, a foreign advisor without a US office or other place of business that manages less than $___ of client assets or has fewer than 15 US clients.

Answer 3

Dodd-Frank Act of 2011

Question 4

Under the Dodd Frank act, if advisor manages between ___ & ___ million of client funds, he or she may elect to register with the S EC or with his or her state.

Answer 4

$100 and $110 million

Question 5

The investment advisor term must make an initial filing with the SEC of Form ___, Parts I and II, and pay a filing fee. Each year, the firm must file ____. If the firm ceases operations, it must file ___.

Answer 5

ADV
Part I
ADV-W

Question 6

It is not permissible to use which initials?

Answer 6

RIA

Question 7

The brochure (___) must be distributed ___ hours prior to the signing of the investment advisory contract or ___ the investment advisory contract is signed, in which case the client may cancel the agreement within ___ days.

Answer 7

ADV, Part 2A
48
At the time
Five

Question 8

Persons excepted from the registration requirement with the SEC:

Answer 8

Bank
Accountant, lawyer, teacher, engineer
Broker-dealer
Publisher
Government securities advisor

Question 9

Persons exempted from the registration with the SEC:

Answer 9

Intrastate clients only
Insurance company clients only
Only 15 clients in the last 12 months

Question 10

FINRA was formerly?

Answer 10

NASD

Question 11

FINRA Examination – for investment company products and variable life insurance and variable annuity products

Answer 11

Series 6

Question 12

FINRA Examination – for all investment products except commodities and certain options

Answer 12

Series 7

Question 13

FINRA Examination – for tax shelters other than real estate investment trusts, i.e., not our REITs.

Answer 13

Series 22

Question 14

FINRA Examination – in conjunction with Series 6 and 22, for all investment products except options

Answer 14

Series 62

Question 15

FINRA Examination – For state licensing in many states

Answer 15

Series 63

Question 16

FINRA Examination – for registered investment advisers at the state level

Answer 16

Series 65

Question 17

___ our state laws dealing with the regulation of the securities business.

Answer 17

Blue sky laws

Question 18

Federal securities law – focuses on disclosure concerning offers of new issues; requires that they be registered with the SEC; provides for distribution of a prospectus to interested investors, as well as a preliminary prospectus prior to approval of the new issues’ registration statement by the SEC.

Answer 18

Securities act of 1933

Question 19

Federal securities law – Focuses on the trading of existing security’s; created the SEC to police market manipulation, deception, and misrepresentation; requires periodic reports (Form 10-K) by publicly held securities issuers to the SEC; gave the SEC control of the securities exchanges and, later, the over-the-counter market.

Answer 19

Securities exchange act of 1934

Question 20

Federal securities law – allows for the formation of self-regulatory organizations to police the securities industry under the supervision of the SEC; the NASD (now called FINRA) is the only such organization to have been formed and approved.

Answer 20

Maloney act of 1938

Question 21

Federal securities law – requires registration of investment companies with the SEC; provides for ongoing regulation of their disclosures and procedures.

Answer 21

Investment Company act of 1940

Question 22

Federal securities law – created the SIPC to ensure cash and securities held in “street name” in brokerage houses that fail.

Answer 22

Securities investor protection act of 1970

Question 23

Federal securities law – called for the development of a competitive national system for trading securities; led to the abandonment of fixed brokerage commission rates.

Answer 23

Securities act amendments of 1975

Question 24

Federal securities law – prohibits use of inside information in securities purchases and sales.

Answer 24

Insider trading and securities fraud enforcement act of 1988

Question 25

Federal securities law – requires companies to give customers the right not to have their information shared with unrelated third parties

Answer 25

Gramm-Leach-Bliley Act of 1999

Question 26

Federal securities law – stops terrorists from using funds held in US financial institutions for illegal activities.

Answer 26

International money laundering abatement and financial anti-terrorism act of 2001

Question 27

Federal securities law – addresses accounting fraud and financial disclosures and established the Public Company Accounting Oversight Board to supervise accounting firms and audits.

Answer 27

Sarbanes-Oxley Act of 2002