Unit 1

Question 1

What are the criteria to be considered an IA?

Answer 1

a firme that gives Advise as a main part of the Business for Compensation (ABC)

Does not give advise on Futures or commodities

Question 2

Definition of IA

Answer 2

Firm, that gives advise on securities as part of the buiness fo rompesnation. ABC)

Question 3

Number of clients to require state registration for IA

Answer 3

5 or less. (not 6) retail clients

Question 4

Banks and trustes register with___________

Answer 4

no one. exempt from registration

Question 5

What is not an IA?

Answer 5

bank
B/D
IAR- individual
Agent
Issuer
PLATE

Question 6

IAs register with_________

Answer 6

Either SEC or State never both.
State - $0-100 million AUM
Choose - $101-110 million AUM
SEC - $110+ AUM -OR- $25-100 million AND registered in 15 states

Question 7

When do IAs not have to register with a state

Answer 7

1. when federally covered.
2. No office or 5 or less retail clients in a state.

Question 8

PLATE

Answer 8

Advise is incidental to business, not charging for advise, Exclusions from registration as IA.
Publishers
Lawyers
Attorneys
Teachers
Engineers