Unit 3

Question 1

SEC Release IA-1092

Answer 1

• financial planner
• agents for sports and entertainment talent
• pension consultants

Question 2

When would a small investment advisor (less than $25 million) be permitted to register w/ SEC?

Answer 2

• Unless IA is an advisor is an advisor to an investment company registered under Investment company act of 1940 (mutual fund) and
• if advisor registered in 15 or more states, registration w/ SEC would be permitted instead

Question 3

$20 Million buffer

Answer 3

IA can remain SEC registered as long as AUM remain at or above $90 million

Question 4

Which part of form ADV is known as the “investment advisor brochure?”

Answer 4

Form ADV Part 2A and tends to focus on customer- related information

Question 5

Form ADV Part 2B

Answer 5

Brochure supplement that must contain information about “advisory personnel on whom clients rely for investment advice.”

Question 6

Updating Form ADV

Answer 6

Each year by filing an annual updating amendment within 90 Days after the end of the advisor’s fiscal year

Question 7

How much would a pension consultant need to manage to be eligible for SEC registration?

Answer 7

$200 million

Question 8

Form ADV Part 1B

Answer 8

Asks additional questions required by state securities authorities. Federal covered advisors do not complete part 1B. All investment advisers complete both Form ADV Part 2A and 2B as well as Form ADV Part 1A.

Question 9

Pension consultant must have how much AUM to be eligible to be federal covered?

Answer 9

At least $200 million under management