Series 65: Exercise

Exercise

Answer True or false

1. 1. True or false. An investment adviser with no place of business, 20 institutional clients, and 3 non-institutional clients in State A has to register there.
2. 2. True or false. An investment adviser with no place of business and six non-institutional clients in State A has to register there.
3. 3. True or false. An investment adviser with $200 million assets under management and six non-institutional clients in State A has to register there.
4. 4. True or false. An investment adviser with $75 million in assets under management that is registered in 16 states is allowed to register at the federal level.
5. 5. True or false. To register at the state level, an investment adviser needs to file both a Form ADV and a Form U4.
6. 6. True or false. An investment adviser must always have a net worth of at least $35,000.
7. 7. True or false. Investment advisers must keep most records on file for at least five years.
8. 8. True or false. A state administrator cannot require an investment adviser to maintain net capital amounts greater than that required at the federal level.
9. 9. True or false. Investment advisers cannot be audited more than once a year.
10. 10. True or false. An adviser’s withdrawal of registration becomes effective as soon as it is filed with the state administrator.

Answers

1. 1. False. An investment adviser with no place of business in a state does not have to register there if its clients in that state are institutional clients plus no more th