Module 2 Flashcards
(12 cards)
Who must notify the state administrator when an IAR transfers IA firms?
Former IA
New IA
*** Investment Adviser Representative does NOT have to inform the administrator
When does an registration become effective for B/D, agent, IA and IAR?
At NOON on the 30th calendar day from the day of filing.
***Filing is the date that the administrator received the registration
Under the Uniform Securities Act, when does the registration of agent, B/D, IAR and IA expire?
December 31st of each year.
What is Form ADV-E?
Describes the assets the investment advisers have in custody. It must be filed with the audited balance sheet with the initial application.
According to federal rules, what is the minimum liquid net worth a broker/dealer must have?
$25,000
If an Investment Adviser buys and sells out of their own accounts, when must they file the transaction with the administrator?
Within 10 days after the quarter in which the transaction occurred.
*** Gov. bonds transactions do not need to be reported.
When should the brochure be delivered to the client?
48 hours prior to entering the advisory contract.
When must the brochure be delivered?
Before entering the advisory contract provided that the client has 5 days to cancel.
Who must notify the state administrator when an agent transfers from one B/D to another?
Former B/D
New B/D
Agent
How long must an adviser keep organizational records after an adviser is terminated?
3 years
What is the Central Registration Depository (CRD)?
An entity sponsored by FINRA that is designated to receive and process all state registration applications and supporting documents.
Who are Qualified Purchasers under Federal Covered Securities?
- Individual, couple of family with at least $5 million in investment assets, excluding residents and personal use property
- A person who manages $25 million in investment assets
- A person who manages $25 million in trust
