Unit 13

Question 1

When completion of the transaction is

Answer 1

2nd business day after trade is made

Question 2

Agency cross transaction

Answer 2

Adviser acts both as an agent for its advisory client and the party on the other side

Question 3

In addition to prior written consent, a client must be sent (3)

Answer 3

1. A statement of the nature of the transaction
2. The date and time of the transaction
3. The source and amount of any remuneration to be received by the IA (or IAR) in connection with the transaction.

Question 4

What must an adviser not do in an agency cross transaction?

Answer 4

Recommend a transaction to both parties of a trade

Question 5

What are not part of the NASAA fee disclosure template (4)

Answer 5

Commissions, markups and markdowns, and advisory fees

Question 6

Does registration equal approval?

Answer 6

No, you are registered with a governing body but that doesn’t mean that authority “approves” of you

Question 7

Can securities professionals guarantee return on any security?

Answer 7

No

Question 8

If a broker-dealer forms a subsidiary that registers as an investment adviser, what must existing clients do?

Answer 8

Enter into a new contract for advisory services

Question 9

Can clients agree to waive their right to sue?

Answer 9

No, this is null and void

Question 10

If investment advisers organized as a partnership, what must clients be notified of

Answer 10

Change involving minority of the partners