HESI A2: Vocabulary & General Knowledge (Quiz 3) Welcome to your Series 65 Practice Quizzes. Note: We designed four (4) parts of practice quizzes for each Domain. Each part has 25 questions. Domain 4 (part 4): Laws, Regulations, and Guidelines, including Prohibition on Unethical Business Practices​​​​​​​. (25 questions) Please click NEXT to start your Free Series 65 Practice Quizzes right away. Best of Luck! 1. Series 65, Laws, Regulations, and Guidelines, including Prohibition on Unethical Business Practices,Series 65 A discussion referring to blue-sky laws would include all of the following EXCEPT A. A) forms requiring issuers selling securities in the state to comply with state securities laws B. B) the Securities Act of 1933 and Securities Exchange Act of 1934 C. C) a state securities law that grants state securities Administrators the power to deny or revoke a broker-dealer's or an agent's registration within its state D. D) state laws that are designed to protect the public against fraud in securities sales within a state None 2. Series 65, Laws, Regulations, and Guidelines, including Prohibition on Unethical Business Practices,Series 65 Which of the following must register as an investment adviser under the Investment Advisers Act of 1940? A. A) A person who provides advice to people who are investing in coin collections B. B) A person who provides advice to insurance companies on their portfolios C. C) A person who provides advice to people who are investing in antique furniture D. D) A person who provides advice to people who are investing in mutual funds registered under the Investment Company Act of 1940 None 3. Series 65, Laws, Regulations, and Guidelines, including Prohibition on Unethical Business Practices,Series 65 The SEC requires investment advisers registered under the Investment Advisers Act of 1940 to maintain certain books and records for a minimum of A. A) 3 years B. B) 5 years C. C) 1 year D. D) 6 years None 4. Series 65, Laws, Regulations, and Guidelines, including Prohibition on Unethical Business Practices,Series 65 Which of the following is specifically excluded from the definition of an investment adviser providing the investment advice is solely incidental to the business in which the person is engaged? A. A) Pension manager B. B) Movie star's business manager who handles the star's investment portfolio C. C) Industrial engineer D. D) Sports representative who advises on securities for a fee None 5. Series 65, Laws, Regulations, and Guidelines, including Prohibition on Unethical Business Practices,Series 65 Under the provisions of the Uniform Securities Act, it is NOT necessary for an investment adviser to register when it A. A) has a place of business in the state but deals exclusively with federal covered advisers B. B) has a place of business in the state but has conducted business with 3 individual investors during the preceding 12 consecutive months C. C) is headquartered in a state where it conducts most of its business with broker-dealers only D. D) has no place of business in the state and deals with savings and loan associations only None 6. Series 65, Laws, Regulations, and Guidelines, including Prohibition on Unethical Business Practices,Series 65 A federal covered IA files a petition for bankruptcy. The firm must A. A) notify all of its clients immediately B. B) notify the Administrator immediately C. C) do nothing until the court decides the disposition of the firm's assets D. D) notify the SEC immediately None 7. Series 65, Laws, Regulations, and Guidelines, including Prohibition on Unethical Business Practices,Series 65 Under the Uniform Securities Act, who must register as an investment adviser? A. A) A financial planner with no place of business in a state and who advises only trust companies B. B) A registered broker-dealer who receives compensation for providing investment advice C. C) A bank that provides investment advice D. D) An accountant who provides advice solely incidental to the business None 8. Series 65, Laws, Regulations, and Guidelines, including Prohibition on Unethical Business Practices,Series 65 The sole proprietor of an insurance business that exclusively provides advice on fixed-income annuity contracts A. A) need not register under any securities laws B. B) must register as an investment adviser under the Investment Advisers Act of 1940 C. C) must register as an investment adviser representative under the USA D. D) must register as a broker-dealer with the SEC None 9. Series 65, Laws, Regulations, and Guidelines, including Prohibition on Unethical Business Practices,Series 65 An investment adviser with no place of business in the state is exempt from registration with the state when making recommendations to all of the following EXCEPT A. A) AAA Manufacturing Co., with respect to the quality of investment bankers available for an underwriting of AAA securities B. B) when the recommendations are made exclusively to individual residents of the state who are accredited investors regarding new issues of exempt securities not registered in that state C. C) St. Amelia's college endowment fund D. D) Amalgamated Bank None 10. Series 65, Laws, Regulations, and Guidelines, including Prohibition on Unethical Business Practices,Series 65 Under the Investment Advisers Act of 1940, which of the following is considered an investment adviser? A. A) A person who publishes a regular newsletter of advice on U.S. Treasury bonds and other U.S. government securities B. B) The trust officer of a commercial bank who manages investment accounts for clients C. C) A syndicated columnist who gives weekly reports and recommendations on investments D. D) A lawyer who specializes in consulting on investing in securities None 11. Series 65, Laws, Regulations, and Guidelines, including Prohibition on Unethical Business Practices,Series 65 Federally registered investment advisers are obligated to maintain certain books and records as specified by the SEC. Which of the following statements regarding adviser recordkeeping is NOT true? A. A) Records originally created on computer may be stored in electronic media. B. B) Records must be kept for 6 years. C. C) Written records may be reduced to microfilm. D. D) Records are subject to surprise audits by the SEC. None 12. Series 65, Laws, Regulations, and Guidelines, including Prohibition on Unethical Business Practices,Series 65 Under the Uniform Securities Act, a state-registered investment adviser whose only office was in State N would NOT have to register in State O if its only clients were A. A) trust companies B. B) individual accredited investors C. C) complex trusts D. D) 6 or fewer retail clients None 13. Series 65, Laws, Regulations, and Guidelines, including Prohibition on Unethical Business Practices,Series 65 Martin holds both the CPA and the CFP designations. Within the previous year, if he has provided portfolio advice to approximately 40 clients, is Martin required to register as an investment adviser? A. A) Yes, because he provides investment advice on a more than incidental basis. B. B) Yes, because he could receive commission income from investment clients. C. C) No, because he falls under the de minimis exemption having relatively few clients. D. D) No, because he is a CPA. None 14. Series 65, Laws, Regulations, and Guidelines, including Prohibition on Unethical Business Practices,Series 65 Under the Investment Advisers Act of 1940, an adviser is required to be registered with the SEC if A. A) the adviser's clients are investment companies registered under the Investment Company Act of 1940 B. B) the adviser's advice relates solely to securities issued or guaranteed by the U.S. government. C. C) the adviser is the publisher of a news magazine of general and regular circulation D. D) the adviser's clientele is exclusively federal credit unions and the adviser has less than $100 million in assets under management None 15. Series 65, Laws, Regulations, and Guidelines, including Prohibition on Unethical Business Practices,Series 65 A state-registered investment adviser with discretionary authority over client accounts discovered on Monday, that the firm's net worth is below the required amount. He must notify the administrator and then file a report no later than the A. A) close of business Tuesday, close of business Wednesday B. B) close of business Tuesday, close of business Friday C. C) close of business Monday, close of business Friday D. D) close of business Monday, close of business Wednesday None 16. Series 65, Laws, Regulations, and Guidelines, including Prohibition on Unethical Business Practices,Series 65 Platinum Investment in Growth Group, Inc. (PIGGI) is registered in and has its principal office in State W. PIGGI has near-term plans to open offices in State A and B. In an effort to test the waters, PIGGI mails several hundred flyers to prospects in those 2 states. Under the Uniform Securities Act, A. A) these flyers could not be mailed until PIGGI was registered in States A and B B. B) as long as PIGGI did not maintain an office in either of these states, the flyers could be mailed C. C) as a federal covered investment adviser, the flyers would need filing with the SEC D. D) these flyers could be mailed, but no accounts can be opened until PIGGI is registered in States A and B None 17. Series 65, Laws, Regulations, and Guidelines, including Prohibition on Unethical Business Practices,Series 65 Bulaan Advisory Services, Inc. (BAS), an investment adviser registered in 5 states, was found to have been untruthful in its performance reporting. Once this news was released, most of its clients terminated their advisory contracts. As a result, BAS shuttered its doors on July 18, 2018. Minutes of shareholder meetings must be preserved until at least A. A) July 18, 2023. B. B) December 31, 2018. C. C) December 31, 2023. D. D) July 18, 2021. None 18. Series 65, Laws, Regulations, and Guidelines, including Prohibition on Unethical Business Practices,Series 65 If an investment adviser files an initial registration with a state on June 30, which of the following statements regarding the filing fee to be paid is TRUE? A. A) The full year's fee must be paid. B. B) The fee will be prorated from the filing date. C. C) The fee will be prorated from the effective date. D. D) No filing fee is required until December 31. None 19. Series 65, Laws, Regulations, and Guidelines, including Prohibition on Unethical Business Practices,Series 65 Under the Uniform Securities Act, which of the following statements is TRUE regarding registration of an investment adviser if the application has not been amended? A. A) Unless specified earlier, registration becomes effective no later than 90 days after the application is filed. B. B) Unless specified earlier by the Administrator, the registration becomes effective at noon on the 60th day after application. C. C) Unless specified earlier by the Administrator, the registration becomes effective no later than noon on the 30th day after application. D. D) Unless specified earlier, registration becomes effective no sooner than 15 days after the application is filed. None 20. Series 65, Laws, Regulations, and Guidelines, including Prohibition on Unethical Business Practices,Series 65 The term "federal covered investment adviser" would apply to a person who A. A) is registered as such under the Investment Advisers Act of 1940 B. B) limits the advice offered strictly to securities listed on the New York Stock Exchange (NYSE) C. C) is registered as such under the Investment Company Act of 1940 D. D) limits the advice offered strictly to securities issued or guaranteed by the U.S. government or 1 of its political subdivisions None 21. Series 65, Laws, Regulations, and Guidelines, including Prohibition on Unethical Business Practices,Series 65 On April 15, ABC Advisers, Inc., made application for registration as an investment adviser with State X. Absent a denial or stop order, registration will become effective A. A) April 15 B. B) May 1 C. C) May 15 D. D) April 30 None 22. Series 65, Laws, Regulations, and Guidelines, including Prohibition on Unethical Business Practices,Series 65 USAAdvisers is registered in 10 Midwest states. Regarding financial requirements, USAAdvisers must meet those of A. A) each state in which it has a place of business B. B) the state in which its principal office is located C. C) the state with the most stringent financial requirements D. D) the SEC None 23. Series 65, Laws, Regulations, and Guidelines, including Prohibition on Unethical Business Practices,Series 65 ABC Advisers changes its name to XYZ Advisers and also changes its location. Under the Investment Advisers Act of 1940, it must A. A) notify the Administrator B. B) notify FINRA within seven days C. C) amend Form ADV promptly D. D) amend Form ADV in advance None 24. Series 65, Laws, Regulations, and Guidelines, including Prohibition on Unethical Business Practices,Series 65 Under the NASAA Model Rule on financial requirements for investment advisers, investment advisers who have custody of customer funds are usually required to have a net worth in the amount of A. A) $5,000 B. B) $10,000 C. C) $50,000 D. D) $35,000 None 25. Series 65, Laws, Regulations, and Guidelines, including Prohibition on Unethical Business Practices,Series 65 The USA places a number of recordkeeping requirements on investment advisers. Records required to be kept by all state-registered investment advisers include all of the following EXCEPT A. A) a list of discretionary accounts B. B) emails C. C) bank records D. D) a record by security showing each client's interest and location thereof None 1 out of 25 Time is Up! Time's up
