IACCP (MASTER TERMS) EXAM | QUESTIONS & 100%
CORRECT ANSWERS (VERIFIED) | LATEST UPDATE |
GRADEA+
Person - ANSWER -Natural person or company
Not Securities - ANSWER -Commodity Futures, Fixed Annuities
Securities Act of 1933 Securities Exchange Act of 1934 Trust Indenture
Act of 1939 - ANSWER -Acts respectively, heretofore or hereafter
amended
What is a Business Development Company? - ANSWER -A company
must be registered in compliance with Section 54 of the Investment
Company Act of 1940 to qualify as a BDC. A major difference between
a BDC and a venture capital fund is that BDCs allow smaller, non-
accredited investors to invest in startup companies.
A BDC is a type of closed-end fund that makes investments in
developing companies and firms that are financially distressed.
What is an underwriter? - ANSWER -Works closely with the issuing
body to determine the offering price of the securities, buys them from
the issuer, and sells them to investors via the underwriter's distribution
network. Underwriters generally receive underwriting fees from their
issuing clients, but they also can earn profits when selling the
underwritten shares to investors.
What is a Foreign Private Advisor? - ANSWER -No US, fewer than 15
clients in US in private funds, aggregate assets under management US
,clients in private funds of less than $25 million. Does not hold self out in
the US public as an Investment Adviser; nor acts as An Investment
Adviser to any investment company registered under the Investment
Company Act of 1940
What is a Commodity Pool Operator (CPO)? - ANSWER -A CPO is an
individual or organization which operates a commodity pool and solicits
funds for that commodity pool.
What is a Commodity Pool? - ANSWER -An enterprise in which funds
contributed by a number of persons are combined for the purpose of
trading futures contracts, options on futures, retail off-exchange forex
contracts or swaps, or to invest in another commodity pool.
What is a Commodity Trading Advisor (CTA) - ANSWER -A US
financial regulatory term for an individual or organization who is
retained by a fund or individual client to provide advice and services
related to trading in futures contracts, commodity options and/or swaps.
They are responsible for the trading within managed futures accounts.
What is a Swap - ANSWER -A derivative contract through which two
parties exchange financial instruments. These instruments can be almost
anything, but most swaps involve cash flows based on a notional
principal amount that both parties agree to. Usually, the principal does
not change hands. Each cash flow comprises one leg of the swap. One
cash flow is generally fixed, while the other is variable, that is, based on
a a benchmark interest rate, floating currency exchange rate or index
price.
,The most common kind of swap is an interest rate swap. Swaps do not
trade on exchanges, and retail investors do not generally engage in
swaps. Rather, swaps are over-the-counter contracts between businesses
or financial institutions.
What is a Swap Dealer? - ANSWER -An individual who acts as the
counterparty in a swap agreement for a fee called a spread. Swap dealers
are the market makers for the swap market. The spread represents the
difference between the wholesale price for trades and the retail price.
Because swap arrangements aren't actively traded, swap dealers allow
brokers to standardize swap contracts to some extent.
What is Swap Execution Facility? - ANSWER -A platform for financial
swap trading that provides pre-trade information (i.e. bid and offer
prices) and a mechanism for executing swap transactions among eligible
participants.
Penalties - ANSWER -1st Tier - Max Penalty for each act
$5,000/natural person or $50,000 for any other person
2nd Tier $50,000 for each act or omission natural person or $250,000 for
any other person (Fraud, deceit, manipulation or deliberate or reckless
disregard)
3rd Tier $100,000 each act natural person or $500,000 for any other
person (Fraud, deceit, manipulation or deliberate or reckless disregard,
and if substantial losses or created a significant risk of substantial losses
to other persons)
Violations could result in - ANSWER -Accounting and disgorgement
Cease and Desist Proceedings
Hearing
, Temporary Order
Investment Advisor - ANSWER -An investment advisor is defined by
the Investment Advisors Act of 1940, as any person or group that makes
investment recommendations or conducts securities analysis in return for
a fee, whether through direct management of client assets or via written
publications.
Who are Advisory Affiliates? - ANSWER -(1) all of your officers,
partners, or directors (or any person performing similar functions);
(2) all persons directly or indirectly controlling or controlled by you; and
(3) all of your current employees (other than employees performing only
clerical, administrative, ...
What AUM requires SEC Registration? - ANSWER -Over $100
Million
What is an "Investment Advisor? - ANSWER -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
When is SEC Registration Required? - ANSWER -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
CORRECT ANSWERS (VERIFIED) | LATEST UPDATE |
GRADEA+
Person - ANSWER -Natural person or company
Not Securities - ANSWER -Commodity Futures, Fixed Annuities
Securities Act of 1933 Securities Exchange Act of 1934 Trust Indenture
Act of 1939 - ANSWER -Acts respectively, heretofore or hereafter
amended
What is a Business Development Company? - ANSWER -A company
must be registered in compliance with Section 54 of the Investment
Company Act of 1940 to qualify as a BDC. A major difference between
a BDC and a venture capital fund is that BDCs allow smaller, non-
accredited investors to invest in startup companies.
A BDC is a type of closed-end fund that makes investments in
developing companies and firms that are financially distressed.
What is an underwriter? - ANSWER -Works closely with the issuing
body to determine the offering price of the securities, buys them from
the issuer, and sells them to investors via the underwriter's distribution
network. Underwriters generally receive underwriting fees from their
issuing clients, but they also can earn profits when selling the
underwritten shares to investors.
What is a Foreign Private Advisor? - ANSWER -No US, fewer than 15
clients in US in private funds, aggregate assets under management US
,clients in private funds of less than $25 million. Does not hold self out in
the US public as an Investment Adviser; nor acts as An Investment
Adviser to any investment company registered under the Investment
Company Act of 1940
What is a Commodity Pool Operator (CPO)? - ANSWER -A CPO is an
individual or organization which operates a commodity pool and solicits
funds for that commodity pool.
What is a Commodity Pool? - ANSWER -An enterprise in which funds
contributed by a number of persons are combined for the purpose of
trading futures contracts, options on futures, retail off-exchange forex
contracts or swaps, or to invest in another commodity pool.
What is a Commodity Trading Advisor (CTA) - ANSWER -A US
financial regulatory term for an individual or organization who is
retained by a fund or individual client to provide advice and services
related to trading in futures contracts, commodity options and/or swaps.
They are responsible for the trading within managed futures accounts.
What is a Swap - ANSWER -A derivative contract through which two
parties exchange financial instruments. These instruments can be almost
anything, but most swaps involve cash flows based on a notional
principal amount that both parties agree to. Usually, the principal does
not change hands. Each cash flow comprises one leg of the swap. One
cash flow is generally fixed, while the other is variable, that is, based on
a a benchmark interest rate, floating currency exchange rate or index
price.
,The most common kind of swap is an interest rate swap. Swaps do not
trade on exchanges, and retail investors do not generally engage in
swaps. Rather, swaps are over-the-counter contracts between businesses
or financial institutions.
What is a Swap Dealer? - ANSWER -An individual who acts as the
counterparty in a swap agreement for a fee called a spread. Swap dealers
are the market makers for the swap market. The spread represents the
difference between the wholesale price for trades and the retail price.
Because swap arrangements aren't actively traded, swap dealers allow
brokers to standardize swap contracts to some extent.
What is Swap Execution Facility? - ANSWER -A platform for financial
swap trading that provides pre-trade information (i.e. bid and offer
prices) and a mechanism for executing swap transactions among eligible
participants.
Penalties - ANSWER -1st Tier - Max Penalty for each act
$5,000/natural person or $50,000 for any other person
2nd Tier $50,000 for each act or omission natural person or $250,000 for
any other person (Fraud, deceit, manipulation or deliberate or reckless
disregard)
3rd Tier $100,000 each act natural person or $500,000 for any other
person (Fraud, deceit, manipulation or deliberate or reckless disregard,
and if substantial losses or created a significant risk of substantial losses
to other persons)
Violations could result in - ANSWER -Accounting and disgorgement
Cease and Desist Proceedings
Hearing
, Temporary Order
Investment Advisor - ANSWER -An investment advisor is defined by
the Investment Advisors Act of 1940, as any person or group that makes
investment recommendations or conducts securities analysis in return for
a fee, whether through direct management of client assets or via written
publications.
Who are Advisory Affiliates? - ANSWER -(1) all of your officers,
partners, or directors (or any person performing similar functions);
(2) all persons directly or indirectly controlling or controlled by you; and
(3) all of your current employees (other than employees performing only
clerical, administrative, ...
What AUM requires SEC Registration? - ANSWER -Over $100
Million
What is an "Investment Advisor? - ANSWER -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
When is SEC Registration Required? - ANSWER -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
