SERIES 66 COMPREHENSIVE EXAM 2026 UPDATED
QUESTIONS AND SOLUTIONS RATED A+
✔✔make a notecard with life insurance stuff - ✔✔
✔✔What is 1 important thing that must be included on an order ticket for an IA? - ✔✔the
IA who recommended the transaction
✔✔The state Administrator may only cite reasons that are found in state law to
disqualify a person from registration (e.g., a felony conviction, violation of commodities
laws, misleading statements, etc.)
so technically using psychic readings as a method of decision making is acceptable -
✔✔
✔✔REITs are required to generate at least _% of their income from investing in real
property. Also, REITs are required to distribute at least _% of their income to its
shareholders each year. - ✔✔75%
90%
✔✔Does having discretionary authority over an account mean you have custody? - ✔✔i
thought so, but apparently not, so look this up
CB5 #65
✔✔The Administrator must provide a person with prior written notice, an opportunity for
a hearing (60 days to apply for this judicial review), and written findings of fact and
conclusions of law when taking disciplinary action against a person - ✔✔
✔✔If the administrator revokes a firm's registration, the firm may request a hearing with
the administrator within _ days of revocation and/or apply for judicial review of the
administrator's actions within _ days. - ✔✔15
60
✔✔An investment adviser is required to maintain a record of the names and addresses
of any person to whom it has sent any notice, circular, advertisement, offering, report or
publication if the number of persons is 10 or fewer (i thought it was 10 or more?). - ✔✔
✔✔If an adviser develops investment tools (e.g., charts and spreadsheets), it must
make adequate disclosure regarding... - ✔✔the tool's limitations and that it may not be
appropriate for all clients
, ✔✔_ is the process of buying and selling securities within a portfolio to restore its
original asset allocation.
It may be done either periodically (annually, quarterly, or monthly) or whenever market
forces or different rates of return cause a significant change in the original asset
allocation. - ✔✔systematic rebalancing
✔✔When developing a plan for a client, what is important - current int rates or
approximate inflation rate? - ✔✔inflation rate
✔✔Sales literature that relates to exempt securities, exempt transactions, and federal
covered securities (e.g., an exchange-listed security) *is/is not* subject to the filing
requirements of the USA. - ✔✔is not
✔✔_ style options will be exercised automatically if the value of the underlying security
hits or exceeds a specified capped price. - ✔✔capped
✔✔Under the Investment Company Act of 1940, shareholders *are/are not* entitled to
current information about the composition of the fund's portfolio. - ✔✔are not
✔✔When would an administrator waive a surety bond for an IA? - ✔✔1. no custody
2. net worth of 35k
✔✔_ is a liquidity ratio that measures both short term and long term debt. - ✔✔debt
coverage ratio
✔✔What disclosures must be made when selling your BD's stock to your clients? -
✔✔the relationship must be disclosed orally prior to transaction and in writing before the
settlement date
✔✔Can you rollover a 529 plan? - ✔✔yes, every 12 months, to another states plan
✔✔What is disclosed on a bond confirmation? - ✔✔1. coupon rate
2. YTM
3. bond's PP
- rating not required unless it is unrated
✔✔If you change your fees as an IA do you have to give your updated brochure to
current clients? - ✔✔no, just new ones; current clients will get the updated one annually
✔✔Industrial stocks *are/are not* cyclical, meaning... - ✔✔are
QUESTIONS AND SOLUTIONS RATED A+
✔✔make a notecard with life insurance stuff - ✔✔
✔✔What is 1 important thing that must be included on an order ticket for an IA? - ✔✔the
IA who recommended the transaction
✔✔The state Administrator may only cite reasons that are found in state law to
disqualify a person from registration (e.g., a felony conviction, violation of commodities
laws, misleading statements, etc.)
so technically using psychic readings as a method of decision making is acceptable -
✔✔
✔✔REITs are required to generate at least _% of their income from investing in real
property. Also, REITs are required to distribute at least _% of their income to its
shareholders each year. - ✔✔75%
90%
✔✔Does having discretionary authority over an account mean you have custody? - ✔✔i
thought so, but apparently not, so look this up
CB5 #65
✔✔The Administrator must provide a person with prior written notice, an opportunity for
a hearing (60 days to apply for this judicial review), and written findings of fact and
conclusions of law when taking disciplinary action against a person - ✔✔
✔✔If the administrator revokes a firm's registration, the firm may request a hearing with
the administrator within _ days of revocation and/or apply for judicial review of the
administrator's actions within _ days. - ✔✔15
60
✔✔An investment adviser is required to maintain a record of the names and addresses
of any person to whom it has sent any notice, circular, advertisement, offering, report or
publication if the number of persons is 10 or fewer (i thought it was 10 or more?). - ✔✔
✔✔If an adviser develops investment tools (e.g., charts and spreadsheets), it must
make adequate disclosure regarding... - ✔✔the tool's limitations and that it may not be
appropriate for all clients
, ✔✔_ is the process of buying and selling securities within a portfolio to restore its
original asset allocation.
It may be done either periodically (annually, quarterly, or monthly) or whenever market
forces or different rates of return cause a significant change in the original asset
allocation. - ✔✔systematic rebalancing
✔✔When developing a plan for a client, what is important - current int rates or
approximate inflation rate? - ✔✔inflation rate
✔✔Sales literature that relates to exempt securities, exempt transactions, and federal
covered securities (e.g., an exchange-listed security) *is/is not* subject to the filing
requirements of the USA. - ✔✔is not
✔✔_ style options will be exercised automatically if the value of the underlying security
hits or exceeds a specified capped price. - ✔✔capped
✔✔Under the Investment Company Act of 1940, shareholders *are/are not* entitled to
current information about the composition of the fund's portfolio. - ✔✔are not
✔✔When would an administrator waive a surety bond for an IA? - ✔✔1. no custody
2. net worth of 35k
✔✔_ is a liquidity ratio that measures both short term and long term debt. - ✔✔debt
coverage ratio
✔✔What disclosures must be made when selling your BD's stock to your clients? -
✔✔the relationship must be disclosed orally prior to transaction and in writing before the
settlement date
✔✔Can you rollover a 529 plan? - ✔✔yes, every 12 months, to another states plan
✔✔What is disclosed on a bond confirmation? - ✔✔1. coupon rate
2. YTM
3. bond's PP
- rating not required unless it is unrated
✔✔If you change your fees as an IA do you have to give your updated brochure to
current clients? - ✔✔no, just new ones; current clients will get the updated one annually
✔✔Industrial stocks *are/are not* cyclical, meaning... - ✔✔are
