Page | 1
IACCP (MASTER TERMS) 2025 BRAND
NEW ACTUAL EXAM WITH ANSWERS.
When is the deadline to amend form ADV? - correct answers -All
firms that are registered with the SEC on Jan 1st 2012 must
amend their ADV by March 30th, 2012
IARD Account - correct answers -All states that require
registration of IAR's (RA's on CRD) which can be done in a IARD
account
2 reasons for small advisers to register with SEC - correct
answers -1. principal state does not require registration
2. state does not require any type of exam
Define small adviser - correct answers -Advisers with $25 million
or less in assets under management
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What two factors determine whether mid size advisers are
required to register? - correct answers -1. Mid size advisers have
to register if the state where their principal office is located does
NOT require registration.
2. If they are registered in a state that is NOT subject to a Exam
by the State securities administrator.
What is the RAUM range of a "Mid Sized adviser"? - correct
answers -$25-100 million
What is the RAUM threshold for Registered Advisers? - correct
answers -$150 million
4 elements of "investment advice" - correct answers -1. Advice
about market trends
2. Advice in historical or data form
3. Advice about selecting an adviser
4. Advice about the pros and cons of securities vs. other
investments
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INVESTMENT COMPANY ACT OF 1940 - correct answers -an
act of Congress that regulates the formation of investment
companies and their activities.
The Act details the regulations that U.S. investment companies
must abide by when offering and maintaining investment product
securities. Provisions of the Act address requirements for filings,
service charges, financial disclosures, and the fiduciary duties of
investment companies.
INVESTMENT ADVISERS ACT OF 1940 - correct answers -The
Investment Advisers Act of 1940 is a U.S. federal law that defines
the role and responsibilities of an investment advisor/adviser.
Prompted in part by a 1935 report to Congress on investment
trusts and investment companies prepared by the Securities and
Exchange Commission (SEC), the act provides the legal
groundwork for monitoring those who advise pension funds,
individuals and institutions on investing. It specifies what qualifies
as investment advice and stipulates who must register with state
and federal regulators in order to dispense it.
The original impetus of the Investment Advisers Act of 1940, as
with most other financial regulations of the 1930s and 1940s, was
the stock market crash of 1929 and its disastrous aftermath, the
Great Depression.
, Page | 4
Investment Advisers Act vs. Investment Company Act - correct
answers -The Investment Advisers Act of 1940 regulates open-
and closed-end investment companies, as well as their
investment advisers and principal underwriters.
The Advisers Act regulates investment advisers.
Investment Advisers Act and the Investment Company Act, both
passed in 1940, protected consumers against misleading and
fraudulent investment advice.
Assignment - correct answers -Any direct or indirect transfer or
hypothecation of an investment advisory contract by the assignor
Who is not an Investment Advisor? - correct answers -A Bank,
Lawyer, accountant, engineer, teach whose performance of such
services is solely incidental to the practice of his profession,
Broker-dealer (commission only)published of any bona fide
newspaper, magazine, business publication, rating systems
(Moodys, etc.)
What does it mean when someone has "Control"? - correct
answers -Power to exercise a controlling influence over the
management or policies of a compny
IACCP (MASTER TERMS) 2025 BRAND
NEW ACTUAL EXAM WITH ANSWERS.
When is the deadline to amend form ADV? - correct answers -All
firms that are registered with the SEC on Jan 1st 2012 must
amend their ADV by March 30th, 2012
IARD Account - correct answers -All states that require
registration of IAR's (RA's on CRD) which can be done in a IARD
account
2 reasons for small advisers to register with SEC - correct
answers -1. principal state does not require registration
2. state does not require any type of exam
Define small adviser - correct answers -Advisers with $25 million
or less in assets under management
, Page | 2
What two factors determine whether mid size advisers are
required to register? - correct answers -1. Mid size advisers have
to register if the state where their principal office is located does
NOT require registration.
2. If they are registered in a state that is NOT subject to a Exam
by the State securities administrator.
What is the RAUM range of a "Mid Sized adviser"? - correct
answers -$25-100 million
What is the RAUM threshold for Registered Advisers? - correct
answers -$150 million
4 elements of "investment advice" - correct answers -1. Advice
about market trends
2. Advice in historical or data form
3. Advice about selecting an adviser
4. Advice about the pros and cons of securities vs. other
investments
, Page | 3
INVESTMENT COMPANY ACT OF 1940 - correct answers -an
act of Congress that regulates the formation of investment
companies and their activities.
The Act details the regulations that U.S. investment companies
must abide by when offering and maintaining investment product
securities. Provisions of the Act address requirements for filings,
service charges, financial disclosures, and the fiduciary duties of
investment companies.
INVESTMENT ADVISERS ACT OF 1940 - correct answers -The
Investment Advisers Act of 1940 is a U.S. federal law that defines
the role and responsibilities of an investment advisor/adviser.
Prompted in part by a 1935 report to Congress on investment
trusts and investment companies prepared by the Securities and
Exchange Commission (SEC), the act provides the legal
groundwork for monitoring those who advise pension funds,
individuals and institutions on investing. It specifies what qualifies
as investment advice and stipulates who must register with state
and federal regulators in order to dispense it.
The original impetus of the Investment Advisers Act of 1940, as
with most other financial regulations of the 1930s and 1940s, was
the stock market crash of 1929 and its disastrous aftermath, the
Great Depression.
, Page | 4
Investment Advisers Act vs. Investment Company Act - correct
answers -The Investment Advisers Act of 1940 regulates open-
and closed-end investment companies, as well as their
investment advisers and principal underwriters.
The Advisers Act regulates investment advisers.
Investment Advisers Act and the Investment Company Act, both
passed in 1940, protected consumers against misleading and
fraudulent investment advice.
Assignment - correct answers -Any direct or indirect transfer or
hypothecation of an investment advisory contract by the assignor
Who is not an Investment Advisor? - correct answers -A Bank,
Lawyer, accountant, engineer, teach whose performance of such
services is solely incidental to the practice of his profession,
Broker-dealer (commission only)published of any bona fide
newspaper, magazine, business publication, rating systems
(Moodys, etc.)
What does it mean when someone has "Control"? - correct
answers -Power to exercise a controlling influence over the
management or policies of a compny
