South Carolina Investment Advisor
Representative License Exam Practice
Questions And Correct Answers
(Verified Answers) Plus Rationale 2026
Q&A| Instant Download Pdf
1. Which of the following is required to register as an Investment Adviser
Representative in South Carolina?
A. A college degree in finance
B. Passing the Series 65 or 66 exam
C. Sponsorship by a FINRA member broker-dealer
D. A minimum of five years’ industry experience
Because South Carolina requires IAR applicants to pass the Series 65
or a combination of the Series 7 and 66 exams to demonstrate
knowledge of investment adviser regulations and products.
2. An investment adviser with its principal office in South Carolina must
register with:
A. FINRA
B. The South Carolina Securities Division
C. SEC only
D. Municipal securities advisors board
South Carolina law requires advisers domiciled in the state to register
with the state securities regulator unless otherwise exempt.
,3. Which form is typically filed to register an investment adviser at the
state level?
A. U-4
B. Form ADV Part 2B only
C. Form ADV Part 1 and Part 2A
D. Form BD
Form ADV Parts 1 and 2A provide regulatory information on the
adviser’s business and disclosures necessary for state registration.
4. A South Carolina IAR has a fiduciary duty to clients, which means he
must:
A. Always guarantee investment returns
B. Act in the client’s best interests
C. Maintain client assets in offshore accounts
D. Never charge advisory fees
Fiduciary duty requires placing the client’s interests ahead of the
adviser’s own interests.
5. An adviser representative’s registration becomes effective in South
Carolina on:
A. The date the exam score posts with FINRA
B. The date the Administrator issues approval
C. The first business day of the year
D. Automatically upon filing Form U-4
State registration is not effective until the Administrator approves
the application.
6. What is NOT required in the Form ADV Part 2A brochure provided to
clients?
A. Advisory services offered
B. Fees and compensation
C. Educational transcripts of all IARs
, D. Disciplinary history
Client brochures require business and disciplinary information, but
educational transcripts are not included.
7. South Carolina requires investment advisers to maintain books and
records for:
A. 1 year
B. 3 years
C. 5 years
D. Indefinitely
State rules often mirror SEC’s requirement for a five-year retention of
key advisory records.
8. Which of the following clients is an IAR automatically registered at the
state level?
A. A client with more than $500,000 under management
B. Institutional clients only if no direct solicitation occurs
C. Clients in offshore trusts
D. U.S. citizens living abroad
State registration generally applies to individuals soliciting or
providing advice to clients in the state unless an exemption applies.
9. The South Carolina Administrator may revoke an IAR’s registration for:
A. Losing money for a client
B. Misrepresentation to clients
C. Charging any fee at all
D. Referring a client to another adviser
Misrepresentation and deceit are grounds for disciplinary action by
the Administrator.
10. A performance-based fee arrangement is most likely permitted
for:
A. Qualified clients with at least $1 million AUM
Representative License Exam Practice
Questions And Correct Answers
(Verified Answers) Plus Rationale 2026
Q&A| Instant Download Pdf
1. Which of the following is required to register as an Investment Adviser
Representative in South Carolina?
A. A college degree in finance
B. Passing the Series 65 or 66 exam
C. Sponsorship by a FINRA member broker-dealer
D. A minimum of five years’ industry experience
Because South Carolina requires IAR applicants to pass the Series 65
or a combination of the Series 7 and 66 exams to demonstrate
knowledge of investment adviser regulations and products.
2. An investment adviser with its principal office in South Carolina must
register with:
A. FINRA
B. The South Carolina Securities Division
C. SEC only
D. Municipal securities advisors board
South Carolina law requires advisers domiciled in the state to register
with the state securities regulator unless otherwise exempt.
,3. Which form is typically filed to register an investment adviser at the
state level?
A. U-4
B. Form ADV Part 2B only
C. Form ADV Part 1 and Part 2A
D. Form BD
Form ADV Parts 1 and 2A provide regulatory information on the
adviser’s business and disclosures necessary for state registration.
4. A South Carolina IAR has a fiduciary duty to clients, which means he
must:
A. Always guarantee investment returns
B. Act in the client’s best interests
C. Maintain client assets in offshore accounts
D. Never charge advisory fees
Fiduciary duty requires placing the client’s interests ahead of the
adviser’s own interests.
5. An adviser representative’s registration becomes effective in South
Carolina on:
A. The date the exam score posts with FINRA
B. The date the Administrator issues approval
C. The first business day of the year
D. Automatically upon filing Form U-4
State registration is not effective until the Administrator approves
the application.
6. What is NOT required in the Form ADV Part 2A brochure provided to
clients?
A. Advisory services offered
B. Fees and compensation
C. Educational transcripts of all IARs
, D. Disciplinary history
Client brochures require business and disciplinary information, but
educational transcripts are not included.
7. South Carolina requires investment advisers to maintain books and
records for:
A. 1 year
B. 3 years
C. 5 years
D. Indefinitely
State rules often mirror SEC’s requirement for a five-year retention of
key advisory records.
8. Which of the following clients is an IAR automatically registered at the
state level?
A. A client with more than $500,000 under management
B. Institutional clients only if no direct solicitation occurs
C. Clients in offshore trusts
D. U.S. citizens living abroad
State registration generally applies to individuals soliciting or
providing advice to clients in the state unless an exemption applies.
9. The South Carolina Administrator may revoke an IAR’s registration for:
A. Losing money for a client
B. Misrepresentation to clients
C. Charging any fee at all
D. Referring a client to another adviser
Misrepresentation and deceit are grounds for disciplinary action by
the Administrator.
10. A performance-based fee arrangement is most likely permitted
for:
A. Qualified clients with at least $1 million AUM
