FINAL EXAM QUESTIONS WITH
VERIFIED CORRECT ANSWERS
Under the Uniform Securities Act, an investment adviser who has no place of business
in a State is exempt from registration if the:
I firm's clients consist solely of institutional investors in the State
II firm has no more than 5 clients other than financial or institutional investors within a
12 month period
III firm's advice relates solely to municipal securities
A I only
B I and II
C II and III
D I, II, III - ANSWER-B
Under state law, there isn't an exemption from registration if the firm only deals with
municipal securities
True or False:
If an Investment Adviser has no place of business in the state and only deals with
institutional investors and has no more than 5 clients within a 12 month period, they're
exempt from registration - ANSWER-True
True or False:
If an Investment Adviser deals solely with Federally covered securities, there's no need
for it to register in the state. However, this doesn't apply to its Agents. - ANSWER-True
Which of the following investment advisers are NOT required to register in a State?
I An investment adviser that has no place of business in the State and which has no
more than 5 clients in that State within a 12 month period
II An investment adviser with at least $100,000,000 of assets under management
registered with the Securities and Exchange Commission under the Investment
Advisers Act of 1940
III An investment adviser that has no place of business in the State that deals solely
with Investment Companies as defined under the Investment Company Act of 1940
IV An investment adviser that has no place of business in the State that deals solely
with other investment advisers
A II and III only
B III and IV only
C I, III, and IV
D I, II, III, IV - ANSWER-D
True or False:
, Broker-dealers that are registered with the self-regulatory organization under the
Securities Exchange Act of 1934, such as FINRA, must still register in each State. -
ANSWER-True
An agent doing business in one state would like to solicit in a neighboring state. Which
statement(s) are TRUE?
I The broker-dealer must be registered in the neighboring state
II The broker-dealer need not be registered in the neighboring state III The agent must
be registered in the neighboring state
IV The agent need not be registered in the neighboring state
A I and III
B I and IV
C II and III
D II and IV - ANSWER-A
To do business in a given state, both the broker-dealer and agent must be registered in
that state, unless an exemption is available.
True or False:
While the agents of a broker dealer/investment adviser are required to register in the
states, the broker dealers/investment advisers themselves are not - ANSWER-False
Both the broker dealer/investment adviser along with their agents MUST be registered
in the states
This holds UNLESS there's an exemption
Under NASAA, investment advisers must update their ADV filing made with the State:
I yearly, within 90 days of calendar year end
II yearly, within 90 days of fiscal year end
III within 30 days of any significant material change
IV within 90 days of any significant material change
A I and III
B I and IV
C II and III
D II and IV - ANSWER-C
Under NASAA rules, investment advisers must update their Form ADV (State
registration form) annually, within __________ days of fiscal year end, to reflect current
and accurate information and must send the updated Form ADV to its clients within
__________days of year end if there is a material change.
In addition, if there is a significant material change in the ADV information that occurs
during the year, the filing must be amended within __________ days. - ANSWER-90
120
30
VERIFIED CORRECT ANSWERS
Under the Uniform Securities Act, an investment adviser who has no place of business
in a State is exempt from registration if the:
I firm's clients consist solely of institutional investors in the State
II firm has no more than 5 clients other than financial or institutional investors within a
12 month period
III firm's advice relates solely to municipal securities
A I only
B I and II
C II and III
D I, II, III - ANSWER-B
Under state law, there isn't an exemption from registration if the firm only deals with
municipal securities
True or False:
If an Investment Adviser has no place of business in the state and only deals with
institutional investors and has no more than 5 clients within a 12 month period, they're
exempt from registration - ANSWER-True
True or False:
If an Investment Adviser deals solely with Federally covered securities, there's no need
for it to register in the state. However, this doesn't apply to its Agents. - ANSWER-True
Which of the following investment advisers are NOT required to register in a State?
I An investment adviser that has no place of business in the State and which has no
more than 5 clients in that State within a 12 month period
II An investment adviser with at least $100,000,000 of assets under management
registered with the Securities and Exchange Commission under the Investment
Advisers Act of 1940
III An investment adviser that has no place of business in the State that deals solely
with Investment Companies as defined under the Investment Company Act of 1940
IV An investment adviser that has no place of business in the State that deals solely
with other investment advisers
A II and III only
B III and IV only
C I, III, and IV
D I, II, III, IV - ANSWER-D
True or False:
, Broker-dealers that are registered with the self-regulatory organization under the
Securities Exchange Act of 1934, such as FINRA, must still register in each State. -
ANSWER-True
An agent doing business in one state would like to solicit in a neighboring state. Which
statement(s) are TRUE?
I The broker-dealer must be registered in the neighboring state
II The broker-dealer need not be registered in the neighboring state III The agent must
be registered in the neighboring state
IV The agent need not be registered in the neighboring state
A I and III
B I and IV
C II and III
D II and IV - ANSWER-A
To do business in a given state, both the broker-dealer and agent must be registered in
that state, unless an exemption is available.
True or False:
While the agents of a broker dealer/investment adviser are required to register in the
states, the broker dealers/investment advisers themselves are not - ANSWER-False
Both the broker dealer/investment adviser along with their agents MUST be registered
in the states
This holds UNLESS there's an exemption
Under NASAA, investment advisers must update their ADV filing made with the State:
I yearly, within 90 days of calendar year end
II yearly, within 90 days of fiscal year end
III within 30 days of any significant material change
IV within 90 days of any significant material change
A I and III
B I and IV
C II and III
D II and IV - ANSWER-C
Under NASAA rules, investment advisers must update their Form ADV (State
registration form) annually, within __________ days of fiscal year end, to reflect current
and accurate information and must send the updated Form ADV to its clients within
__________days of year end if there is a material change.
In addition, if there is a significant material change in the ADV information that occurs
during the year, the filing must be amended within __________ days. - ANSWER-90
120
30
