Unit 10: Regulation of Investment Adviser Representatives

Question 1

Investment Advisor Representative

Answer 1

Represents the firm, is a natural person.
If sole-prop, IA and IAR are the same person

Question 2

Excluded from IAR definition

Answer 2

Admin/Clerical work
Incidental Advice
Doesn’t regularly solicit and provide client specific advice

Question 3

Exempt from IAR definition STATE

Answer 3

-de minimis, no place of business and T12 is 5 or under
-snowbird

Question 4

Exempt from IAR definition FEDERAL

Answer 4

IAR only needs to register if there is a place of business
-principal office doesn’t matter

Question 5

When IA registers in new state

Answer 5

the officers, partners, and directors functioning as IARs are automatically registered.
-supervisory principals are considered IAR’s too

Question 6

IAR termination STATE

Answer 6

IA notifies admin promptly

Question 7

IAR termination FEDERAL

Answer 7

IAR notifies admin promptly

Question 8

update U4

Answer 8

IAR must update U4 within 30 days

Question 9

renew registration

Answer 9

IA and IAR both renew on Dec 31st.

Question 10

Section 203A

Answer 10

-IAR for federally covered does not need to register in a state with de minimis clients and no public place of business
-a quarterly seminar constitutes a place of business