STC SERIES 66 STUDY GUIDE 2026 TEST
PAPER QUESTIONS AND SOLUTIONS
GRADED A+
●● Which of the following investments are prohibited under the UPIA?
Answer: No type of class of investment is specifically banned under the
Uniform Prudent Investor Act (UPIA)
●● Under SEC Release 1092, who would NOT be exempt from the
definition of investment adviser?
Answer: A marketing firm who's investment advice is solely incidental
to its profession
●● Under the Investment Advisers Act of 1940, which of the following
situations would be a violation of soft-dollar practices?
Answer: An investment adviser uses a broker-dealer to execute
transactions that provide the adviser with assistance concerning its
compliance responsibilities
●● Money managers are prohibited from directing commission dollars
to obtain which of the following items from registered broker-dealers?
Answer: Office space
, ●● Which of the following choices would not be permitted under a soft-
dollar arrangement between an investment adviser and a broker-dealer?
Answer: Accounting fees
●● A firm has been keeping stock owned by customer and stock owned
by the broker-dealer together in a way that does not clearly indicate who
owns the shares. what is this prohibited practice called?
Answer: Commingling
●● When sharing in the profits of a customer's account, whose approval
is required?
Answer: The client's
●● If a federal covered adviser changes its fee:
Answer: The investment adviser is required to file an amended Form
ADV Part 2 with the SEC
●● Without discretionary authority, an agent may execute a client's order
if the client specifies which TWO of the following details?
Answer: -The price of execution
-Whether to buy or sell
PAPER QUESTIONS AND SOLUTIONS
GRADED A+
●● Which of the following investments are prohibited under the UPIA?
Answer: No type of class of investment is specifically banned under the
Uniform Prudent Investor Act (UPIA)
●● Under SEC Release 1092, who would NOT be exempt from the
definition of investment adviser?
Answer: A marketing firm who's investment advice is solely incidental
to its profession
●● Under the Investment Advisers Act of 1940, which of the following
situations would be a violation of soft-dollar practices?
Answer: An investment adviser uses a broker-dealer to execute
transactions that provide the adviser with assistance concerning its
compliance responsibilities
●● Money managers are prohibited from directing commission dollars
to obtain which of the following items from registered broker-dealers?
Answer: Office space
, ●● Which of the following choices would not be permitted under a soft-
dollar arrangement between an investment adviser and a broker-dealer?
Answer: Accounting fees
●● A firm has been keeping stock owned by customer and stock owned
by the broker-dealer together in a way that does not clearly indicate who
owns the shares. what is this prohibited practice called?
Answer: Commingling
●● When sharing in the profits of a customer's account, whose approval
is required?
Answer: The client's
●● If a federal covered adviser changes its fee:
Answer: The investment adviser is required to file an amended Form
ADV Part 2 with the SEC
●● Without discretionary authority, an agent may execute a client's order
if the client specifies which TWO of the following details?
Answer: -The price of execution
-Whether to buy or sell
