IACCP Examination STUDY GUIDE

"Investment Adviser" person/firm compensated for engaging in business of (directly or indirectly) advising others on securities or the advisability of investing (or) who issues analysis/reports concerning securities - Answer- SEC vs Capital Gains Research Bureau basis of Fiduciary Rule, specifically Best Interest SEC Registration Required when 1) definition of "IA" is met (unless otherwise excepted from definition or exempt/prohibited from registration); AND $100M in AUM (optional for Mid-Sized Advisers AUM $100-115M Buffer Zone) - OR - 2) when ADVISING a Registered Investment Company - OR - 3) AUM $25-100M AND NOT registered/required to register with State OR NOT Subject to EXAMS by State Registration withdraw required for AUM under $90M - Answer- SEC Registration Optional when 1) AUM $25-100M (except NY req. at $25M) - OR - 2) Advisers Registered in 15 or more States (AUM $25M or less PROHIBITED from registering w/ SEC but held to various state requirements) EXCLUDED from Definition of "IA" are: 1) Domestic banks and bank holding companies; 2) Services SOLELY Incidental by lawyers, accountants, engineers, teachers, (and) 3) BD advisory services w/out special compensation; 4) Publishers of bona fide newspapers/mags w/Regular Circulation; 5) Advising Direct Obligations of US (bonds); 6) NRSROs (Nationally Recognized Statistical Rating Orgs; 7) Family Offices; and 8) Others designated by SEC rulemaking (such as those otherwise prohibited or exempt) - Answer- EXEMPTIONS from SEC Registration: 1) Intrastate Advisers: NOT advising, analyzing or reporting on NSE Listed Securities* and ALL Clients reside in same state as principal office (*includes securities w/ unlisted trading privileges); 2) Advisers to ONLY Insurance Companies; 3) Private Fund Advisers w/ AUM less than $150M, and Advisers to Foreign Private and Venture Capital Funds; 4) Church Plans, and certain 5) Charitable organizations 6) Registered Commodity Trading 7) Small Business Investment Companies Private Fund Adviser Exemption Criteria: PRIVATE FUND: Advise SOLELY private funds (unlimited) so long as aggregate assets of such NOT EXCEEDING $150M (per ADV annual calculation), including Non-US Advisers when ALL US clients are Qualifying Private Funds VENTURE CAPITAL: Any advising SOLELY venture capital funds FOREIGN PRIVATE: No place of business in US, Less than 15 private fund clients/investors in US, Less than $25M aggregate AUM attributed to clients/private fund investors, AND doesn't hold out to US public as an IA - Answer- Form PF (intended to Monitor Systematic Risk to US Financial System) is required by advisers to Hedge & other Private Funds, and SEC-Registered Advisers to 1 or More Private Funds having at least $150M AUM attributable to such as of last fiscal year-end