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IACCP MASTER QUESTION BANK NEWEST 2025|
COMPLETE QUESTIONS AND CORRECT DETAILED
ANSWERS (VERIFIED ANSWERS) ALREADY GRADED
A+|| BRAND NEW!!
An SEC-registered investment adviser is NOT required to disclose
"material" disciplinary information in its Form ADV Part 1 after:
A. 5 years
B. 10 years
C. 12 years
D. 15 years - Correct Answer - B. 10 years
Which event would be deemed an assignment of an investment advisory
contract?
A. An adviser hires a new CEO to replace its current retiring CEO.
B. An adviser is purchased by an unaffiliated adviser.
C. Any public offering of an adviser's stock.
D. An adviser organized as a corporation changes its structure to a
partnership. - Correct Answer - B. An adviser is purchased by an
unaffiliated adviser
The Investment Advisers Act of 1940 requires that written investment
advisory agreements must address:
A. proxy voting.
B. assignment of the contract.
pg. 1
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C. brokerage arrangements.
D. fees. - Correct Answer - B. assignment of the contract.
If an investment adviser becomes ineligible for SEC registration, which
document must be filed to terminate its registration?
A. Form DRP
B. Form ADV-W
C. Form ADV Part 2A
D. Form U5 - Correct Answer - B. Form ADV-W
During an examination of XYZ Investment Advisers, the SEC discovers
that two of Adviser's portfolio managers have been engaged in
frontrunning client accounts. Neither Compliance nor Senior
Management had any knowledge of the scheme. If Adviser can show to
the SEC's satisfaction that it had developed and enforced procedures
reasonably designed to prevent frontrunning, Adviser will be able to
claim that, despite the violation, Adviser has met its duty to:
A. assist the SEC.
B. maintain required books and records.
C. eliminate internal control deficiencies.
D. supervise. - Correct Answer - D. supervise.
SEC-registered advisers that have proxy voting authority for clients must
do which TWO of the following? (Choose two.)
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A. Adopt procedures to ensure proxies are voted in the best interest of
clients.
B. Disclose to clients information about the firm's proxy policies and
procedures on Form ADV Part 2.
C. Create a proxy voting committee to address conflict situations.
D. Provide information to clients on how their proxies were voted. -
Correct Answer - A. Adopt procedures to ensure proxies are voted in the
best interest of clients.
D. Provide information to clients on how their proxies were voted.
Under the SEC Investment Adviser Codes of Ethics Rule, access persons
must obtain pre-approval for which TWO types of personal securities
transactions? (Choose two.)
A. Participation in private placements.
B. Trades in securities held in clients' accounts.
C. Acquisition of securities in IPOs.
D. Mutual fund purchases if the adviser acts as adviser for the fund. -
Correct Answer - A. Participation in private placements.
C. Acquisition of securities in IPOs.
What does the SEC Investment Adviser Codes of Ethics Rule require
access persons to submit?
A. An annual holdings report that must be current within 45 days of
submission.
B. Quarterly transaction reports within 10 days of quarter end.
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C. A certification that the employee does not hold any private
placements.
D. A request for pre-approval of all brokers used. - Correct Answer - A.
An annual holdings report that must be current within 45 days of
submission.
As defined in Form ADV, all positions would be considered an advisory
affiliate EXCEPT the investment advisory firm's:
A. Head Trader
B. Chief Financial Officer
C. Systems Administrator
D. Investment Adviser Representative - Correct Answer - C. Systems
Administrator
Pursuant to the Securities Exchange Act of 1934, Section 13(f) securities
that must be reported on Form 13F generally include each of the
following EXCEPT:
A. Exchange-traded securities
B. Mutual funds
C. Exchange-traded funds
D. NASDAQ-quoted securities - Correct Answer - B. Mutual funds
Under the Advertising Rule, which TWO are required when an adviser
provides a list of profitable past-specific recommendations? The list
must: (Choose two.)
A. be posted on the adviser's Web site.
pg. 4
IACCP MASTER QUESTION BANK NEWEST 2025|
COMPLETE QUESTIONS AND CORRECT DETAILED
ANSWERS (VERIFIED ANSWERS) ALREADY GRADED
A+|| BRAND NEW!!
An SEC-registered investment adviser is NOT required to disclose
"material" disciplinary information in its Form ADV Part 1 after:
A. 5 years
B. 10 years
C. 12 years
D. 15 years - Correct Answer - B. 10 years
Which event would be deemed an assignment of an investment advisory
contract?
A. An adviser hires a new CEO to replace its current retiring CEO.
B. An adviser is purchased by an unaffiliated adviser.
C. Any public offering of an adviser's stock.
D. An adviser organized as a corporation changes its structure to a
partnership. - Correct Answer - B. An adviser is purchased by an
unaffiliated adviser
The Investment Advisers Act of 1940 requires that written investment
advisory agreements must address:
A. proxy voting.
B. assignment of the contract.
pg. 1
,2|Page
C. brokerage arrangements.
D. fees. - Correct Answer - B. assignment of the contract.
If an investment adviser becomes ineligible for SEC registration, which
document must be filed to terminate its registration?
A. Form DRP
B. Form ADV-W
C. Form ADV Part 2A
D. Form U5 - Correct Answer - B. Form ADV-W
During an examination of XYZ Investment Advisers, the SEC discovers
that two of Adviser's portfolio managers have been engaged in
frontrunning client accounts. Neither Compliance nor Senior
Management had any knowledge of the scheme. If Adviser can show to
the SEC's satisfaction that it had developed and enforced procedures
reasonably designed to prevent frontrunning, Adviser will be able to
claim that, despite the violation, Adviser has met its duty to:
A. assist the SEC.
B. maintain required books and records.
C. eliminate internal control deficiencies.
D. supervise. - Correct Answer - D. supervise.
SEC-registered advisers that have proxy voting authority for clients must
do which TWO of the following? (Choose two.)
pg. 2
,3|Page
A. Adopt procedures to ensure proxies are voted in the best interest of
clients.
B. Disclose to clients information about the firm's proxy policies and
procedures on Form ADV Part 2.
C. Create a proxy voting committee to address conflict situations.
D. Provide information to clients on how their proxies were voted. -
Correct Answer - A. Adopt procedures to ensure proxies are voted in the
best interest of clients.
D. Provide information to clients on how their proxies were voted.
Under the SEC Investment Adviser Codes of Ethics Rule, access persons
must obtain pre-approval for which TWO types of personal securities
transactions? (Choose two.)
A. Participation in private placements.
B. Trades in securities held in clients' accounts.
C. Acquisition of securities in IPOs.
D. Mutual fund purchases if the adviser acts as adviser for the fund. -
Correct Answer - A. Participation in private placements.
C. Acquisition of securities in IPOs.
What does the SEC Investment Adviser Codes of Ethics Rule require
access persons to submit?
A. An annual holdings report that must be current within 45 days of
submission.
B. Quarterly transaction reports within 10 days of quarter end.
pg. 3
, 4|Page
C. A certification that the employee does not hold any private
placements.
D. A request for pre-approval of all brokers used. - Correct Answer - A.
An annual holdings report that must be current within 45 days of
submission.
As defined in Form ADV, all positions would be considered an advisory
affiliate EXCEPT the investment advisory firm's:
A. Head Trader
B. Chief Financial Officer
C. Systems Administrator
D. Investment Adviser Representative - Correct Answer - C. Systems
Administrator
Pursuant to the Securities Exchange Act of 1934, Section 13(f) securities
that must be reported on Form 13F generally include each of the
following EXCEPT:
A. Exchange-traded securities
B. Mutual funds
C. Exchange-traded funds
D. NASDAQ-quoted securities - Correct Answer - B. Mutual funds
Under the Advertising Rule, which TWO are required when an adviser
provides a list of profitable past-specific recommendations? The list
must: (Choose two.)
A. be posted on the adviser's Web site.
pg. 4
