IACCP (QE) EXAM QUESTIONS WITH
CORRECT ANSWERS
Which THREE persons or firms may be excluded from having to register
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under the Investment Advisers Act of 1940? (Choose three.)
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A. Accountants whose advisory services pertain solely to incidental
| | | | | | | | |
financial planning.
|
B. Persons or firms whose advice and reports are related solely to U.S.
| | | | | | | | | | | | |
government securities. |
C. Publishers of generally circulated, bona fide newspapers or financial
| | | | | | | | | |
journals.
D. Domestic banks and bank holding companies. - CORRECT
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ANSWER✔✔-B. Persons or firms whose advice and reports are related
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solely to U.S. government securities.
| | | |
C. Publishers of generally circulated, bona fide newspapers or financial
| | | | | | | | | |
journals.
D. Domestic banks and bank holding companies.
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Which activity is NOT mandated for investment advisers that store
| | | | | | | | | |
required records electronically?
| |
,A. Providing the SEC with prompt access, retrieval, and reproduction.
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B. Maintaining copies of all electronically stored records using WORM
| | | | | | | | | |
format.
C. Arranging and indexing records to provide easy access and retrieval.
| | | | | | | | | |
D. Developing procedures to preserve and maintain records. - CORRECT
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ANSWER✔✔-B. Maintaining copies of all electronically stored records
| | | | | | | |
using WORM format. | |
The Investment Advisers Act of 1940 defines the scope of the anti-fraud
| | | | | | | | | | | |
provisions as extending to: | | |
|
A. SEC-registered advisers and foreign advisers with a place of business
| | | | | | | | | | |
in the U.S., whether registered or exempt.
| | | | | |
B. SEC-registered advisers and foreign advisers doing business in the
| | | | | | | | | |
U.S., whether registered or exempt.
| | | |
C. SEC-registered investment advisers.
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D. All investment advisers, whether registered or exempt. - CORRECT
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ANSWER✔✔-D. All investment advisers, whether registered or exempt.
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The fiduciary duty imposed on advisers under the Investment Advisers
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Act of 1940 can BEST be described as:
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|
A. providing equal disclosure to all clients.
| | | | | |
, B. imposing an ERISA fiduciary standard.
| | | | |
C. putting the client's interests ahead of the adviser's.
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D. acting in a custodial capacity. - CORRECT ANSWER✔✔-C. putting the
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client's interests ahead of the adviser's.
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Which TWO qualify as a "security" under the Investment Advisers Act of
| | | | | | | | | | | |
1940? (Choose two.)
| |
|
A. Commodity futures
| |
B. Limited partnership interests
| | |
C. Fixed annuities
| |
D. Variable annuities - CORRECT ANSWER✔✔-B. Limited partnership
| | | | | | | |
interests
D. Variable annuities
| |
In performing due diligence on a potential solicitor, the investment
| | | | | | | | | |
adviser must ensure that the solicitor:
| | | | |
|
A. is not subject to any statutory disqualification.
| | | | | | |
B. is not acting as a solicitor for an unregistered adviser.
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C. has passed the Series 65 exam.
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D. is registered in appropriate states. - CORRECT ANSWER✔✔-A. is not
| | | | | | | | | | |
subject to any statutory disqualification.
| | | |
CORRECT ANSWERS
Which THREE persons or firms may be excluded from having to register
| | | | | | | | | | | |
under the Investment Advisers Act of 1940? (Choose three.)
| | | | | | | |
A. Accountants whose advisory services pertain solely to incidental
| | | | | | | | |
financial planning.
|
B. Persons or firms whose advice and reports are related solely to U.S.
| | | | | | | | | | | | |
government securities. |
C. Publishers of generally circulated, bona fide newspapers or financial
| | | | | | | | | |
journals.
D. Domestic banks and bank holding companies. - CORRECT
| | | | | | | | |
ANSWER✔✔-B. Persons or firms whose advice and reports are related
| | | | | | | | | |
solely to U.S. government securities.
| | | |
C. Publishers of generally circulated, bona fide newspapers or financial
| | | | | | | | | |
journals.
D. Domestic banks and bank holding companies.
| | | | | |
Which activity is NOT mandated for investment advisers that store
| | | | | | | | | |
required records electronically?
| |
,A. Providing the SEC with prompt access, retrieval, and reproduction.
| | | | | | | | |
B. Maintaining copies of all electronically stored records using WORM
| | | | | | | | | |
format.
C. Arranging and indexing records to provide easy access and retrieval.
| | | | | | | | | |
D. Developing procedures to preserve and maintain records. - CORRECT
| | | | | | | | | |
ANSWER✔✔-B. Maintaining copies of all electronically stored records
| | | | | | | |
using WORM format. | |
The Investment Advisers Act of 1940 defines the scope of the anti-fraud
| | | | | | | | | | | |
provisions as extending to: | | |
|
A. SEC-registered advisers and foreign advisers with a place of business
| | | | | | | | | | |
in the U.S., whether registered or exempt.
| | | | | |
B. SEC-registered advisers and foreign advisers doing business in the
| | | | | | | | | |
U.S., whether registered or exempt.
| | | |
C. SEC-registered investment advisers.
| | |
D. All investment advisers, whether registered or exempt. - CORRECT
| | | | | | | | | |
ANSWER✔✔-D. All investment advisers, whether registered or exempt.
| | | | | | |
The fiduciary duty imposed on advisers under the Investment Advisers
| | | | | | | | | |
Act of 1940 can BEST be described as:
| | | | | | |
|
A. providing equal disclosure to all clients.
| | | | | |
, B. imposing an ERISA fiduciary standard.
| | | | |
C. putting the client's interests ahead of the adviser's.
| | | | | | | |
D. acting in a custodial capacity. - CORRECT ANSWER✔✔-C. putting the
| | | | | | | | | | |
client's interests ahead of the adviser's.
| | | | |
Which TWO qualify as a "security" under the Investment Advisers Act of
| | | | | | | | | | | |
1940? (Choose two.)
| |
|
A. Commodity futures
| |
B. Limited partnership interests
| | |
C. Fixed annuities
| |
D. Variable annuities - CORRECT ANSWER✔✔-B. Limited partnership
| | | | | | | |
interests
D. Variable annuities
| |
In performing due diligence on a potential solicitor, the investment
| | | | | | | | | |
adviser must ensure that the solicitor:
| | | | |
|
A. is not subject to any statutory disqualification.
| | | | | | |
B. is not acting as a solicitor for an unregistered adviser.
| | | | | | | | | |
C. has passed the Series 65 exam.
| | | | | |
D. is registered in appropriate states. - CORRECT ANSWER✔✔-A. is not
| | | | | | | | | | |
subject to any statutory disqualification.
| | | |
