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AWMA Module 8 2025/2026 Exam
Questions and Answers | A+ Score
Assured
The provision that certain mutual fund policies cannot be changed without
shareholder approval is addressed in the
A) Investment Company Act of 1940.
B) Securities Exchange Act of 1934.
C) Investment Advisers Act of 1940.
D) Securities Act of 1933. - 🧠 ANSWER ✔✔A) Investment Company Act of 1940.
The regulation of mutual funds is covered in the Investment Company Act of 1940.
A major responsibility of FINRA is
A) developing rules and regulations for its members.
B) establishing rules for issuing new securities in primary markets.
C) insuring customer accounts in the event of the liquidation of brokerage firms.
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COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
,2
D) registering agents of broker-dealers to do business with the public. - 🧠
ANSWER ✔✔A) developing rules and regulations for its members.
FINRA is the largest securities industry self-regulating organization and, therefore,
develops rules and regulations for its members.
Regulatory and industry developments regarding fiduciary advice provided by
investment advisers, and the enactment of Regulation Best Interest will most likely
A)
decrease client expectations of brokers and advisers and fees will stay about the
same.
B)
increase client expectations of brokers and advisers and put downward pressure on
fees.
C)
have very little impact on client expectations of brokers and advisers or on any fees
being charged.
D)
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COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
, 3
increase client expectations and will likely result in higher fees being charged. - 🧠
ANSWER ✔✔B)
increase client expectations of brokers and advisers and put downward pressure on
fees.
The bar is being raised since there is increasing public awareness of the differences
between fiduciary and nonfiduciary advice. The enactment of Regulation Best
Interest has raised the bar and increased expectations of broker-dealers. The SEC
has also released guidance on the fiduciary duties that advisers owe to their clients.
These developments will increase client expectations of brokers and advisers and
put downward pressure on fees and the sale of certain products, especially complex
high fee products that are now being discouraged.
Which act repealed a prohibition that had been in place preventing financial
institutions from offering a combination of commercial banking, investment
banking, and insurance services?
A)
Gramm-Leach-Bliley Act of 1999
B)
3
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
AWMA Module 8 2025/2026 Exam
Questions and Answers | A+ Score
Assured
The provision that certain mutual fund policies cannot be changed without
shareholder approval is addressed in the
A) Investment Company Act of 1940.
B) Securities Exchange Act of 1934.
C) Investment Advisers Act of 1940.
D) Securities Act of 1933. - 🧠 ANSWER ✔✔A) Investment Company Act of 1940.
The regulation of mutual funds is covered in the Investment Company Act of 1940.
A major responsibility of FINRA is
A) developing rules and regulations for its members.
B) establishing rules for issuing new securities in primary markets.
C) insuring customer accounts in the event of the liquidation of brokerage firms.
1
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
,2
D) registering agents of broker-dealers to do business with the public. - 🧠
ANSWER ✔✔A) developing rules and regulations for its members.
FINRA is the largest securities industry self-regulating organization and, therefore,
develops rules and regulations for its members.
Regulatory and industry developments regarding fiduciary advice provided by
investment advisers, and the enactment of Regulation Best Interest will most likely
A)
decrease client expectations of brokers and advisers and fees will stay about the
same.
B)
increase client expectations of brokers and advisers and put downward pressure on
fees.
C)
have very little impact on client expectations of brokers and advisers or on any fees
being charged.
D)
2
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
, 3
increase client expectations and will likely result in higher fees being charged. - 🧠
ANSWER ✔✔B)
increase client expectations of brokers and advisers and put downward pressure on
fees.
The bar is being raised since there is increasing public awareness of the differences
between fiduciary and nonfiduciary advice. The enactment of Regulation Best
Interest has raised the bar and increased expectations of broker-dealers. The SEC
has also released guidance on the fiduciary duties that advisers owe to their clients.
These developments will increase client expectations of brokers and advisers and
put downward pressure on fees and the sale of certain products, especially complex
high fee products that are now being discouraged.
Which act repealed a prohibition that had been in place preventing financial
institutions from offering a combination of commercial banking, investment
banking, and insurance services?
A)
Gramm-Leach-Bliley Act of 1999
B)
3
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
