CFA Chapter 1 - Ethics Exam
Questions + Verified Answers 100%
correct, Update 2026
An individual that has not yet passed the appropriate State
licensing examination for agent registration in a State would be
permitted to:
A
perform clerical duties
B
solicit potential clients
C
make recommendations to clients
D
do any of the above -
correct answer ✅A
An insurance agent also prepares financial plans for customers for a
fee as a sideline. The agent is registered as an investment adviser
representative in the State. Which statement is TRUE?
A
The insurance agent may say that he is registered with the SEC
,CFA Chapter 1 - Ethics Exam
Questions + Verified Answers 100%
correct, Update 2026
B The insurance agent may say that he or she is an investment
counsel
C The insurance agent may say that his qualifications as a planner
have been certified by the State
D The insurance agent may say that he is registered in the State -
correct answer ✅D
Question: Under the Uniform Securities Act, an agent may engage
in which of the following transactions?
A
Effecting transactions in a State where he is not registered, but
where the broker-dealer is registered
B Effecting transactions in a State where the broker-dealer is not
registered, but where he is registered
C Performing investment advisory services for customers as long as
they are solely incidental to his work as a broker and no fees are
charged
D Soliciting orders for non-exempt unregistered securities if he is
registered in the State -
correct answer ✅C
,CFA Chapter 1 - Ethics Exam
Questions + Verified Answers 100%
correct, Update 2026
Under the Uniform Securities Act, an agent may engage in which of
the following transactions?
I Performing investment advisory services for customers as long as
they are solely incidental to his work as a broker and no fees are
charged
II Soliciting orders for non-exempt unregistered securities if he is
registered in the State
III Effecting transactions in a State where he is not registered, but
where the broker-dealer is registered
IV Effecting transactions in a State where the broker-dealer is not
registered, but where he is registered
A I only
B I and II
C III and IV
D I, II, III, IV -
correct answer ✅A
Question: A representative at a member firm is approached by a
person outside that firm to sell promissory notes through that
member's branch office. Which statement is TRUE?
, CFA Chapter 1 - Ethics Exam
Questions + Verified Answers 100%
correct, Update 2026
A
The representative is prohibited from selling the promissory notes
B The representative may only sell the promissory notes after
receiving verbal permission of the member firm
C The representative may only sell the promissory notes after
receiving written permission of the member firm
D The representative may sell the promissory notes without
restriction -
correct answer ✅C
A registered securities agent solicits a customer to buy shares of
stock that the agent personally owns. The customer buys 100
shares of the stock and sends a check made out to the agent. The
agent does not record the trade on the books of the broker-dealer.
This action is considered a(n):
A
allowed exempt transaction
B prohibited exempt transaction
C allowed private securities transaction
D prohibited private securities transaction -
correct answer ✅D
Questions + Verified Answers 100%
correct, Update 2026
An individual that has not yet passed the appropriate State
licensing examination for agent registration in a State would be
permitted to:
A
perform clerical duties
B
solicit potential clients
C
make recommendations to clients
D
do any of the above -
correct answer ✅A
An insurance agent also prepares financial plans for customers for a
fee as a sideline. The agent is registered as an investment adviser
representative in the State. Which statement is TRUE?
A
The insurance agent may say that he is registered with the SEC
,CFA Chapter 1 - Ethics Exam
Questions + Verified Answers 100%
correct, Update 2026
B The insurance agent may say that he or she is an investment
counsel
C The insurance agent may say that his qualifications as a planner
have been certified by the State
D The insurance agent may say that he is registered in the State -
correct answer ✅D
Question: Under the Uniform Securities Act, an agent may engage
in which of the following transactions?
A
Effecting transactions in a State where he is not registered, but
where the broker-dealer is registered
B Effecting transactions in a State where the broker-dealer is not
registered, but where he is registered
C Performing investment advisory services for customers as long as
they are solely incidental to his work as a broker and no fees are
charged
D Soliciting orders for non-exempt unregistered securities if he is
registered in the State -
correct answer ✅C
,CFA Chapter 1 - Ethics Exam
Questions + Verified Answers 100%
correct, Update 2026
Under the Uniform Securities Act, an agent may engage in which of
the following transactions?
I Performing investment advisory services for customers as long as
they are solely incidental to his work as a broker and no fees are
charged
II Soliciting orders for non-exempt unregistered securities if he is
registered in the State
III Effecting transactions in a State where he is not registered, but
where the broker-dealer is registered
IV Effecting transactions in a State where the broker-dealer is not
registered, but where he is registered
A I only
B I and II
C III and IV
D I, II, III, IV -
correct answer ✅A
Question: A representative at a member firm is approached by a
person outside that firm to sell promissory notes through that
member's branch office. Which statement is TRUE?
, CFA Chapter 1 - Ethics Exam
Questions + Verified Answers 100%
correct, Update 2026
A
The representative is prohibited from selling the promissory notes
B The representative may only sell the promissory notes after
receiving verbal permission of the member firm
C The representative may only sell the promissory notes after
receiving written permission of the member firm
D The representative may sell the promissory notes without
restriction -
correct answer ✅C
A registered securities agent solicits a customer to buy shares of
stock that the agent personally owns. The customer buys 100
shares of the stock and sends a check made out to the agent. The
agent does not record the trade on the books of the broker-dealer.
This action is considered a(n):
A
allowed exempt transaction
B prohibited exempt transaction
C allowed private securities transaction
D prohibited private securities transaction -
correct answer ✅D
