SERIES 66- FINAL EXAM #1 2025/2026 WITH
QUESTIONS WITH VERIFIED SOLUTIONS ||
ALREADY GRADED A+ | GUARANTEED PASS |
LATEST VERSION!!!
Terri, an IAR, has decided that with her overhead expenses increasing each year,
she will increase the advisory fees she charges new clients, but not for existing
ones. In order to do so, she must offer which of the following forms to her clients?
A ) ADV Part 2
B) ADV Part 1
CADV-NR
DADV-W - CORRECT ANSWER - Answer is B .A change in advisory fees is a
material change, and her ADV Part 2 must be amended within 30 days and a copy,
or a separate brochure containing the same information, must be given to new
clients and offered to her existing clients.
Which of the following is/are regulated under the Investment Company Act of
1940?
1. Investment companies investing money into other investment companies
2. The firm that serves as a mutual fund's custodian and holds its assets
3. The minimum rate of return required to remain registered as a fund
4. The performance of the investment company - CORRECT ANSWER - Answer
is 1 and 2.The Investment Company Act of 1940 regulates investment companies,
their investment advisers, custodian banks, and distributors. The Investment
Company Act of 1940 does not regulate performance and it does not require
minimum rates of return in order to maintain registration.
1|Page
, Terri, an IAR, has decided that with her overhead expenses increasing each year,
she will increase the advisory fees she charges new clients, but not for existing
ones. In order to do so, she must offer which of the following forms to her clients?
A) ADV Part 1
B) ADV Part 2
C) ADV-W
D) ADV-NR - CORRECT ANSWER - Answer is ADV Part 2.
A change in advisory fees is a material change, and her ADV Part 2 must be
amended within 30 days and a copy, or a separate brochure containing the same
information, must be given to new clients and offered to her existing clients.
An agent is bullish on XYZ stock and intends to recommend the stock to three of
her clients. Before the recommendations are made, the agent buys a large block of
XYZ stock for her own account. Then, once the clients' orders are completed, the
RR sells her shares for a large profit. The agent s action is referred to as:
A) Pegging
B) Making unsuitable recommendations
C) Front-running
D) A wash sale - CORRECT ANSWER - Answer is front-running
When a broker-dealer or agent buys or sells stock or options before the public
release of proprietary information concerning a large block order, it is considered a
prohibited practice that is referred to as front-running. As shown in this question,
the agent buys the stock and then recommends that her clients buy the same stock.
After the clients buy the stock, the RR would likely benefit from the potential
increase in the stock's price. Even if the client recommendations are suitable, it is
unethical for the RR to put her own interests before her clients' interests
Which of the following is/are regulated under the Investment Company Act of
1940?
2|Page
QUESTIONS WITH VERIFIED SOLUTIONS ||
ALREADY GRADED A+ | GUARANTEED PASS |
LATEST VERSION!!!
Terri, an IAR, has decided that with her overhead expenses increasing each year,
she will increase the advisory fees she charges new clients, but not for existing
ones. In order to do so, she must offer which of the following forms to her clients?
A ) ADV Part 2
B) ADV Part 1
CADV-NR
DADV-W - CORRECT ANSWER - Answer is B .A change in advisory fees is a
material change, and her ADV Part 2 must be amended within 30 days and a copy,
or a separate brochure containing the same information, must be given to new
clients and offered to her existing clients.
Which of the following is/are regulated under the Investment Company Act of
1940?
1. Investment companies investing money into other investment companies
2. The firm that serves as a mutual fund's custodian and holds its assets
3. The minimum rate of return required to remain registered as a fund
4. The performance of the investment company - CORRECT ANSWER - Answer
is 1 and 2.The Investment Company Act of 1940 regulates investment companies,
their investment advisers, custodian banks, and distributors. The Investment
Company Act of 1940 does not regulate performance and it does not require
minimum rates of return in order to maintain registration.
1|Page
, Terri, an IAR, has decided that with her overhead expenses increasing each year,
she will increase the advisory fees she charges new clients, but not for existing
ones. In order to do so, she must offer which of the following forms to her clients?
A) ADV Part 1
B) ADV Part 2
C) ADV-W
D) ADV-NR - CORRECT ANSWER - Answer is ADV Part 2.
A change in advisory fees is a material change, and her ADV Part 2 must be
amended within 30 days and a copy, or a separate brochure containing the same
information, must be given to new clients and offered to her existing clients.
An agent is bullish on XYZ stock and intends to recommend the stock to three of
her clients. Before the recommendations are made, the agent buys a large block of
XYZ stock for her own account. Then, once the clients' orders are completed, the
RR sells her shares for a large profit. The agent s action is referred to as:
A) Pegging
B) Making unsuitable recommendations
C) Front-running
D) A wash sale - CORRECT ANSWER - Answer is front-running
When a broker-dealer or agent buys or sells stock or options before the public
release of proprietary information concerning a large block order, it is considered a
prohibited practice that is referred to as front-running. As shown in this question,
the agent buys the stock and then recommends that her clients buy the same stock.
After the clients buy the stock, the RR would likely benefit from the potential
increase in the stock's price. Even if the client recommendations are suitable, it is
unethical for the RR to put her own interests before her clients' interests
Which of the following is/are regulated under the Investment Company Act of
1940?
2|Page
