SERIES 66 UPDATED 2026 EXAM SCRIPT QUESTIONS AND
SOLUTIONS RATED A+
✔✔Who are affiliates of an IA? (3) - ✔✔1. officers, partners, directors
2. nonclerical employees
3. any person directly or indirectly who owns, controls, or holds, 5% or more of the
outstanding securities
✔✔_ focuses on diversifying across various asset classes without significantly
increasing risk. - ✔✔modern portfolio theory
✔✔A cash withdrawal from a life insurance policy is done via *LIFO/FIFO* - ✔✔FIFO
✔✔According to the IA act of 40, when you become an access person, you must submit
your personal security holdings no later than...
access person = officers, directors, parnters, and supervisors who have access to non
public information - ✔✔10 days after becoming an access person, then at lest every 12
months after
✔✔The IA act of '40 requires an access person to submit a transaction report no later
than _ days after the end of each _.
How does this differ from the USA? - ✔✔30 days
calendar quarter
USA is 10 days
✔✔An IA, under both acts, needs to record a transaction in a client's account within...
What security is exempt from this? - ✔✔10 days of the end of each quarter
direct obligations of the US gov't
✔✔What must be included in the access person's report when it comes to his security
holdings?
What is not included? - ✔✔1. the type of securities
2. the date the report is submitted on
3. the name of BD that maintains the account
the prices paid
, ✔✔The administrator may require an IA to file a document stating the _ along with it's
initial ADV. - ✔✔firm's current financial condition
✔✔The administrator may require a FCA to _ if any state that they transact business
with six or more retail clients. - ✔✔give notice or notice file
✔✔Is investing in difference countries considered sector rotation?
What rotating between LT and ST bonds? - ✔✔yes
no
✔✔The Investment company act of 40 does not regulate _ or _. - ✔✔minimum rates of
return
or
the performance
just the companies, banks, and distributors
✔✔Under the USA, _ is not required to be on a customer confirmation, but _ is. - ✔✔the
time is not
the date is
✔✔NASAA says that a website advertisement must include these 2 statements: - ✔✔1.
agent will only conduct business in the state if registered or exempt
2. follow ups will be handles only by agents who are registered or exempt
✔✔Performance based fees are generally prohibited, but if an administrator allows it,
there must be a disclosure that says... - ✔✔this arrangement may cause the advisor to
recumbent strategies that encourage a client to take greater than normal risk
✔✔When completing form BD, a social security number is not required when... - ✔✔the
BD is a corporation
it is required if the applicant is an individual
✔✔An IA who executed transactions through an affiliated BD must disclose this
relationship through form _. - ✔✔ADVII
✔✔Whole life insurance may be called _ life. - ✔✔straight
✔✔Is a tender offer considered an offer of securities? - ✔✔no, it is an offer to buy
SOLUTIONS RATED A+
✔✔Who are affiliates of an IA? (3) - ✔✔1. officers, partners, directors
2. nonclerical employees
3. any person directly or indirectly who owns, controls, or holds, 5% or more of the
outstanding securities
✔✔_ focuses on diversifying across various asset classes without significantly
increasing risk. - ✔✔modern portfolio theory
✔✔A cash withdrawal from a life insurance policy is done via *LIFO/FIFO* - ✔✔FIFO
✔✔According to the IA act of 40, when you become an access person, you must submit
your personal security holdings no later than...
access person = officers, directors, parnters, and supervisors who have access to non
public information - ✔✔10 days after becoming an access person, then at lest every 12
months after
✔✔The IA act of '40 requires an access person to submit a transaction report no later
than _ days after the end of each _.
How does this differ from the USA? - ✔✔30 days
calendar quarter
USA is 10 days
✔✔An IA, under both acts, needs to record a transaction in a client's account within...
What security is exempt from this? - ✔✔10 days of the end of each quarter
direct obligations of the US gov't
✔✔What must be included in the access person's report when it comes to his security
holdings?
What is not included? - ✔✔1. the type of securities
2. the date the report is submitted on
3. the name of BD that maintains the account
the prices paid
, ✔✔The administrator may require an IA to file a document stating the _ along with it's
initial ADV. - ✔✔firm's current financial condition
✔✔The administrator may require a FCA to _ if any state that they transact business
with six or more retail clients. - ✔✔give notice or notice file
✔✔Is investing in difference countries considered sector rotation?
What rotating between LT and ST bonds? - ✔✔yes
no
✔✔The Investment company act of 40 does not regulate _ or _. - ✔✔minimum rates of
return
or
the performance
just the companies, banks, and distributors
✔✔Under the USA, _ is not required to be on a customer confirmation, but _ is. - ✔✔the
time is not
the date is
✔✔NASAA says that a website advertisement must include these 2 statements: - ✔✔1.
agent will only conduct business in the state if registered or exempt
2. follow ups will be handles only by agents who are registered or exempt
✔✔Performance based fees are generally prohibited, but if an administrator allows it,
there must be a disclosure that says... - ✔✔this arrangement may cause the advisor to
recumbent strategies that encourage a client to take greater than normal risk
✔✔When completing form BD, a social security number is not required when... - ✔✔the
BD is a corporation
it is required if the applicant is an individual
✔✔An IA who executed transactions through an affiliated BD must disclose this
relationship through form _. - ✔✔ADVII
✔✔Whole life insurance may be called _ life. - ✔✔straight
✔✔Is a tender offer considered an offer of securities? - ✔✔no, it is an offer to buy
