IACCP exam questions with 100% correct answers

IACCP exam questions with 100% correct answers Define small adviser - ANSWER -Advisers with $25 million or less in assets under management 3 reasons for small advisers to register with SEC - ANSWER -1. principal state does not require registration 2. state does not require any type of exam IARD Account - ANSWER -All states that require registration of IAR's (RA's on CRD) which can be done in a IARD account When is the deadline to amend form ADV? - ANSWER -All firms that are registered with the SEC on Jan 1st 2012 must amend their ADV by March 30th, 2012 "buffer zone" to remain SEC registered - ANSWER -If a firm has assets between $90 - $110 million, then the firm is not required to switch their registration New rule on "private adviser exemption" - ANSWER -an adviser with its principal office and place of business in the U.S. is exempt from Advisers Act registration under the Private Fund Adviser Exemption if it: (1) acts solely as an adviser to one or more "Qualifying Private Funds" and (2) manages private fund assets of less than $150 million Foreign Private Adviser Exemption - ANSWER -Under Dodd-Frank Act, adviser will be exempt if: 1. has no place of biz in the U.S.; 2. has fewer than 15 clients and "investors" in the U.S. in "private funds" advised by the adviser; 3. has aggregate assets under management attributable to clients "in the US" of less than $25 million; 4. does not hold itself out generally to the public in the US as an investment adviser. definition of RAUM - ANSWER -R.egulatory A.ssets U.nder M.anagement - under Advisers Act Section 203A(a)(2) this is when the advisor is providing continuous and regular supervisory or mamagement services 2 definitions met for RAUM - ANSWER -(a) it has discretionary authority over and provides ongoing supervisory or management services with respect to the account; or (b) does NOT have discretionary authority over the account, but has ongoing responsibility to select or make recommendations, based upon the needs of the client, as to specific securities or other investments the account may purchase or sell and, if such recommendations are accepted by the client, is responsible for arranging or effecting the purchase or sale. 6 Exempt Institutions - ANSWER -1. Intrastate Advisers 2. Insurance company advisers 3. Private Fund Advisers / Foreign Advisers / VC Advisers 4. Charitable Organizations and Employees 5. Commodities Trading Advisers 6. Church Plans Venture Capital Exemption - ANSWER -This is only available for advisers who manage ONLY hedge funds. State renewals - ANSWER -All states renew licenses on an annual basis. Brochure updates - ANSWER -The Brochure must be updated annually and promptly when information (other than AUM, the fee schedule or the summary of material changes) becomes materially inaccurate. However, if an adviser is amending the Brochure and its disclosure of assets under management or its fee schedule has become materially inaccurate, then the adviser must update those items as well. In addition, the Brochure must be updated promptly when the adviser adds a disciplinary event or changes material information. Who are the 2 people that need a 2B and the 2 who does not? - ANSWER -(i) any supervised person who formulates investment advice for the client and has direct client contact and (ii) any supervised person who has discretionary authority over the client's assets. 1. No supplement is required for a supervised person who has nodirect client contact and has discretionary authority over client assets only as part of a team.