IACCP 2025/2026 QUESTIONS WITH ANSWERS RATED A+
✔✔Which THREE situations require an SEC-registered adviser to disclose in Form ADV
Part 2 any financial condition that might impair its ability to meet contractual
commitments to clients? (Choose three.)
A. Adviser has discretionary authority
B. Adviser requires prepayment of more than $1,200 in fees per client, six months or
more in advance
C. Adviser has custody of client funds or securities
D. Adviser has custody of client assets and has received a qualified opinion from its
public accountant - ✔✔A. Adviser has discretionary authority
B. Adviser requires prepayment of more than $1,200 in fees per client, six months or
more in advance
C. Adviser has custody of client funds or securities
✔✔ABSENT an exemption, Regulation S-P PROHIBITS the sharing of nonpublic
personal information with any non-affiliated third party unless the firm performs which
TWO actions? (Choose two.)
A. Documents its privacy notice on its website in a clear and conspicuous manner.
B. Provides an opt-out notice for consumers or customers.
C. Provides notice of its privacy policy.
D. Provides consumers with a privacy compliance checklist. - ✔✔B. Provides an opt-out
notice for consumers or customers.
C. Provides notice of its privacy policy
✔✔What are advisers required to report to the Financial Crimes Enforcement Division
(FinCEN)?
A. A potential client's refusal to provide personally identifying information.
B. Frequent transactions that are not consistent with client's objectives or net worth.
C. Each instance in which clients request a copy of their anti-money laundering file.
D. One cash transaction OR two or more related cash transactions totaling more than
$10,000. - ✔✔D. One cash transaction OR two or more related cash transactions
totaling more than $10,000.
✔✔What are the basic requirements for addressing violations in policies and
procedures under the Investment Advisers Act and Investment Company Act
Compliance Programs Rules?
A. Prevent, detect, correct
B. Collect, inspect, affect
C. Infer, deter, procure
D. Design, align, refine - ✔✔A. Prevent, detect, correct
, ✔✔What is TRUE with regard to the written policies and procedures under the scope of
the Investment Advisers Act of 1940 Compliance Programs Rule? They must:
A. be consolidated into a single document.
B. be adequately customized, implemented and supervised.
C. include a risk identification discussion.
D. be distributed to all employees. - ✔✔B. be adequately customized, implemented and
supervised.
✔✔In the final release adopting the Compliance Programs Rules, the SEC indicated
which TWO are required of the individual designated as Chief Compliance Officer
(CCO)? (Choose two.)
A. Must be competent and knowledgeable regarding the Investment Advisers Act of
1940.
B. Must oversee SEC examinations of the adviser.
C. Must be empowered to enforce the written policies and procedures.
D. Must be conversant with the federal securities laws. - ✔✔A. Must be competent and
knowledgeable regarding the Investment Advisers Act of 1940.
C. Must be empowered to enforce the written policies and procedures.
✔✔For which responsibility is the Chief Compliance Officer (CCO) ultimately
accountable?
A. Draft all written policies and procedures.
B. Design and run annual compliance meetings.
C. Enforce written policies and procedures and code of ethics.
D. Independently test all procedures. - ✔✔C. Enforce written policies and procedures
and code of ethics.
✔✔A Chief Compliance Officer (CCO) at an investment company would be required to
provide a written report to the:
A. designated SEC regional office.
B. fund's board of directors.
C. fund's audit committee.
D. fund's CEO. - ✔✔B. fund's board of directors.
✔✔55.
What is NOT true regarding the annual review under the Investment Advisers Act of
1940 Compliance Programs Rule?
A. It is used to determine the adequacy of the firm's policies and procedures.
B. It is used to determine the effectiveness of the firm's policies and procedures.
C. Any document created to evidence the annual review must be retained.
✔✔Which THREE situations require an SEC-registered adviser to disclose in Form ADV
Part 2 any financial condition that might impair its ability to meet contractual
commitments to clients? (Choose three.)
A. Adviser has discretionary authority
B. Adviser requires prepayment of more than $1,200 in fees per client, six months or
more in advance
C. Adviser has custody of client funds or securities
D. Adviser has custody of client assets and has received a qualified opinion from its
public accountant - ✔✔A. Adviser has discretionary authority
B. Adviser requires prepayment of more than $1,200 in fees per client, six months or
more in advance
C. Adviser has custody of client funds or securities
✔✔ABSENT an exemption, Regulation S-P PROHIBITS the sharing of nonpublic
personal information with any non-affiliated third party unless the firm performs which
TWO actions? (Choose two.)
A. Documents its privacy notice on its website in a clear and conspicuous manner.
B. Provides an opt-out notice for consumers or customers.
C. Provides notice of its privacy policy.
D. Provides consumers with a privacy compliance checklist. - ✔✔B. Provides an opt-out
notice for consumers or customers.
C. Provides notice of its privacy policy
✔✔What are advisers required to report to the Financial Crimes Enforcement Division
(FinCEN)?
A. A potential client's refusal to provide personally identifying information.
B. Frequent transactions that are not consistent with client's objectives or net worth.
C. Each instance in which clients request a copy of their anti-money laundering file.
D. One cash transaction OR two or more related cash transactions totaling more than
$10,000. - ✔✔D. One cash transaction OR two or more related cash transactions
totaling more than $10,000.
✔✔What are the basic requirements for addressing violations in policies and
procedures under the Investment Advisers Act and Investment Company Act
Compliance Programs Rules?
A. Prevent, detect, correct
B. Collect, inspect, affect
C. Infer, deter, procure
D. Design, align, refine - ✔✔A. Prevent, detect, correct
, ✔✔What is TRUE with regard to the written policies and procedures under the scope of
the Investment Advisers Act of 1940 Compliance Programs Rule? They must:
A. be consolidated into a single document.
B. be adequately customized, implemented and supervised.
C. include a risk identification discussion.
D. be distributed to all employees. - ✔✔B. be adequately customized, implemented and
supervised.
✔✔In the final release adopting the Compliance Programs Rules, the SEC indicated
which TWO are required of the individual designated as Chief Compliance Officer
(CCO)? (Choose two.)
A. Must be competent and knowledgeable regarding the Investment Advisers Act of
1940.
B. Must oversee SEC examinations of the adviser.
C. Must be empowered to enforce the written policies and procedures.
D. Must be conversant with the federal securities laws. - ✔✔A. Must be competent and
knowledgeable regarding the Investment Advisers Act of 1940.
C. Must be empowered to enforce the written policies and procedures.
✔✔For which responsibility is the Chief Compliance Officer (CCO) ultimately
accountable?
A. Draft all written policies and procedures.
B. Design and run annual compliance meetings.
C. Enforce written policies and procedures and code of ethics.
D. Independently test all procedures. - ✔✔C. Enforce written policies and procedures
and code of ethics.
✔✔A Chief Compliance Officer (CCO) at an investment company would be required to
provide a written report to the:
A. designated SEC regional office.
B. fund's board of directors.
C. fund's audit committee.
D. fund's CEO. - ✔✔B. fund's board of directors.
✔✔55.
What is NOT true regarding the annual review under the Investment Advisers Act of
1940 Compliance Programs Rule?
A. It is used to determine the adequacy of the firm's policies and procedures.
B. It is used to determine the effectiveness of the firm's policies and procedures.
C. Any document created to evidence the annual review must be retained.
