IACCP FINAL EXAM QUESTIONS WITH
DETAILED VERIFIED ANSWERS
Definition: Assigment
Direct or indirect transfer of an investment advisory contract by the asignor or of a controlling
block of the assignor's outstanding voting securities by a security holder of the assignor.
Definition: Person (As it relates to an investment Adviser)
-Partner, officer, or director of such investment adviser (or person's serving same functions)
-Any person directly/indirectly controlling or controlled by the investment adviser
-DOES NOT include persons associated with an IA whose functions are clerical or ministerial.
Definition: Supervised Person
Any partner, officer, director or employee of an investment adviser
Person who provides investment advice on behalf of the IA and is subject to supervision and
control of IA
Definition Investment Adviser
Any person who, for compensation, engages in the business of advising others as to the value of
securities or the advisability of investing in securities or, as part of a regular business, issues
analyses or reports concerning securities.
What entities are not considered Investment Adviser's?
-Bank or any bank holding company (unless it acts as an IA)
-Any lawyer, accountant, engineer, or teacher whose performance of such services is solely
incidental to the practice
-Any broker or dealer whose perforamnce of such services is solely incidental
, -Publisher of any bona fide newspaper, magazine, or business or financial publication
-Any person whose advice/analyses/reports relate to no securities oterh than securities which are
directly tied to US government
-Nationally recognized statistical rating organizations
-Family office
A person or firm is required to register with the SEC if:
-Defined as an investment Adviser
-Not excepted from definition of an investment adviser
-Not prohibited from commission registration by 203A of adviers's act
What are the thresholds for qualified clients (as it relates to performance based fees)?
$2.2m as of 2021.
Hedge Clause (Exculpatory)
An advisory contract that purports to limit an investment adviser's liability to acts of "gross
negligience" or "willful" misconduct.
Typically coupled with "non-waiver disclosure"
Not expressly a violation but toes the line... so SEC basically said proceed with caution
Three Attributes of a CCO
SEC believes that CCO should posses Knowledge, Competence, and Empowerment
Policies and Procedures should be reasonably designed to
DETAILED VERIFIED ANSWERS
Definition: Assigment
Direct or indirect transfer of an investment advisory contract by the asignor or of a controlling
block of the assignor's outstanding voting securities by a security holder of the assignor.
Definition: Person (As it relates to an investment Adviser)
-Partner, officer, or director of such investment adviser (or person's serving same functions)
-Any person directly/indirectly controlling or controlled by the investment adviser
-DOES NOT include persons associated with an IA whose functions are clerical or ministerial.
Definition: Supervised Person
Any partner, officer, director or employee of an investment adviser
Person who provides investment advice on behalf of the IA and is subject to supervision and
control of IA
Definition Investment Adviser
Any person who, for compensation, engages in the business of advising others as to the value of
securities or the advisability of investing in securities or, as part of a regular business, issues
analyses or reports concerning securities.
What entities are not considered Investment Adviser's?
-Bank or any bank holding company (unless it acts as an IA)
-Any lawyer, accountant, engineer, or teacher whose performance of such services is solely
incidental to the practice
-Any broker or dealer whose perforamnce of such services is solely incidental
, -Publisher of any bona fide newspaper, magazine, or business or financial publication
-Any person whose advice/analyses/reports relate to no securities oterh than securities which are
directly tied to US government
-Nationally recognized statistical rating organizations
-Family office
A person or firm is required to register with the SEC if:
-Defined as an investment Adviser
-Not excepted from definition of an investment adviser
-Not prohibited from commission registration by 203A of adviers's act
What are the thresholds for qualified clients (as it relates to performance based fees)?
$2.2m as of 2021.
Hedge Clause (Exculpatory)
An advisory contract that purports to limit an investment adviser's liability to acts of "gross
negligience" or "willful" misconduct.
Typically coupled with "non-waiver disclosure"
Not expressly a violation but toes the line... so SEC basically said proceed with caution
Three Attributes of a CCO
SEC believes that CCO should posses Knowledge, Competence, and Empowerment
Policies and Procedures should be reasonably designed to
