STC Series 66 Chapter 4 Test
Questions and Answers 100% PASS
The Administrator of the state of Wisconsin has designated the Investment
Adviser Registration Depository (IARD) as the approved method for filing
registration applications in that state. All filings must be done electronically
through the IARD. Under which TWO conditions would an investment adviser
requesting an application in Wisconsin NOT need to file electronically with the
IARD? - CORRECT ANSWER-I and III
In states where the Administrator has designated the IARD as the method for
filing registration applications electronically, two exemptions are available. The
exemptions are given in cases where the form that is filed cannot be accepted by
the IARD and for hardships incurred through unexpected technical difficulties in
filing. In such cases the investment adviser may file a manual application.
If TopJob Advisers has limited discretionary authority over client funds, it is
required to: - CORRECT ANSWER-Prepare a balance sheet and file it with the
Administrator
If a registered investment adviser has discretionary authority over client funds or
securities, it is required to file a balance sheet; however, the balance sheet is not
,required to be audited. An audited balance sheet is required to be created and filed
if an adviser has custody or full discretion.
Regarding the possession of funds held by investment advisers (IAs), which of the
following is FALSE? - CORRECT ANSWER-Clients must receive a statement at
least annually that discloses certain details of the funds held by the firm
Client account statements are sent on a quarterly basis and must include the
amount of funds in the firm's possession, a list of securities held in custody, a
record of transactions, and all fees charged. If a custodian holds the assets (i.e., not
the IA), the IA must have a reasonable belief that the statements are being
provided.
Under the Uniform Securities Act, an individual applying for an investment adviser
representative registration may be required by the Administrator to:
Pass an examination
Pay a filing fee
Maintain a minimum net capital - CORRECT ANSWER-I and II
When an individual applies for an investment adviser representative registration,
the Administrator may require the individual to pass an examination (which may be
oral, written, or both) and pay a filing fee. Investment advisers and broker-dealers
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, may be required to maintain a minimum net capital in addition to meeting the two
previously mentioned requirements
Klearkettle Associates is a registered investment adviser in Delaware. Due to the
retirement of the firm's senior partner and namesake, Horace Klearkettle, the firm
decides to close it doors permanently, effective Thanksgiving weekend. What is the
status of the registrations of Klearkettle's IA representatives upon the firm's
closing? - CORRECT ANSWER-All registrations will be ineffective upon the
closing of the firm
Investment adviser representative registrations only remain in force as long as the
IA representative is affiliated with a firm that has a current registration. An agent is
not permitted to act independently if her firm goes out of business.
An investment adviser contracts with a person who is not affiliated with the firm.
In fact, the contractor is not registered with any state Administrator or with the
SEC. Under the Investment Advisers Act of 1940, if the IA intends to give the
contractor a finder's fee for any investment advisory client that's secured through
her service, which of the following statements is TRUE? - CORRECT ANSWER-
The contractor doesn't need to register with the SEC as a solicitor.
In this question, the contractor is acting as a solicitor for the investment adviser.
Registered investment advisers are permitted to pay solicitors as long as they have
a written contract. If the solicitor is only referring clients and not providing advice
directly, the solicitor doesn't need to register with the SEC. However, most states
Questions and Answers 100% PASS
The Administrator of the state of Wisconsin has designated the Investment
Adviser Registration Depository (IARD) as the approved method for filing
registration applications in that state. All filings must be done electronically
through the IARD. Under which TWO conditions would an investment adviser
requesting an application in Wisconsin NOT need to file electronically with the
IARD? - CORRECT ANSWER-I and III
In states where the Administrator has designated the IARD as the method for
filing registration applications electronically, two exemptions are available. The
exemptions are given in cases where the form that is filed cannot be accepted by
the IARD and for hardships incurred through unexpected technical difficulties in
filing. In such cases the investment adviser may file a manual application.
If TopJob Advisers has limited discretionary authority over client funds, it is
required to: - CORRECT ANSWER-Prepare a balance sheet and file it with the
Administrator
If a registered investment adviser has discretionary authority over client funds or
securities, it is required to file a balance sheet; however, the balance sheet is not
,required to be audited. An audited balance sheet is required to be created and filed
if an adviser has custody or full discretion.
Regarding the possession of funds held by investment advisers (IAs), which of the
following is FALSE? - CORRECT ANSWER-Clients must receive a statement at
least annually that discloses certain details of the funds held by the firm
Client account statements are sent on a quarterly basis and must include the
amount of funds in the firm's possession, a list of securities held in custody, a
record of transactions, and all fees charged. If a custodian holds the assets (i.e., not
the IA), the IA must have a reasonable belief that the statements are being
provided.
Under the Uniform Securities Act, an individual applying for an investment adviser
representative registration may be required by the Administrator to:
Pass an examination
Pay a filing fee
Maintain a minimum net capital - CORRECT ANSWER-I and II
When an individual applies for an investment adviser representative registration,
the Administrator may require the individual to pass an examination (which may be
oral, written, or both) and pay a filing fee. Investment advisers and broker-dealers
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED
, may be required to maintain a minimum net capital in addition to meeting the two
previously mentioned requirements
Klearkettle Associates is a registered investment adviser in Delaware. Due to the
retirement of the firm's senior partner and namesake, Horace Klearkettle, the firm
decides to close it doors permanently, effective Thanksgiving weekend. What is the
status of the registrations of Klearkettle's IA representatives upon the firm's
closing? - CORRECT ANSWER-All registrations will be ineffective upon the
closing of the firm
Investment adviser representative registrations only remain in force as long as the
IA representative is affiliated with a firm that has a current registration. An agent is
not permitted to act independently if her firm goes out of business.
An investment adviser contracts with a person who is not affiliated with the firm.
In fact, the contractor is not registered with any state Administrator or with the
SEC. Under the Investment Advisers Act of 1940, if the IA intends to give the
contractor a finder's fee for any investment advisory client that's secured through
her service, which of the following statements is TRUE? - CORRECT ANSWER-
The contractor doesn't need to register with the SEC as a solicitor.
In this question, the contractor is acting as a solicitor for the investment adviser.
Registered investment advisers are permitted to pay solicitors as long as they have
a written contract. If the solicitor is only referring clients and not providing advice
directly, the solicitor doesn't need to register with the SEC. However, most states
