Note Cards 2

  1. What is the definition of an Investment Adviser Representative?
    any partner, officer, director of, or other individual employed by or associated with an investment adviser that is registered or required to be registered under the act or who has a place of business located in this state and is employed by or associated with a federal covered adviser and who does any of the following: 1 makes any recommendations or otherwise renders advice regarding securities, 2 manages accounts or portfolios of clients, 3 determines which recommendation or advice regarding securities should be given 4 solicits, offers or negotiates for the sale of or sells investment advisory services or 5 supervises employees who perform any of the foregoing.
  2. What is the standard for exemption from registration for an IAR?
    an IAR is exempt from having to register in a state where they have no office and less than five non-institutional clients in the past 12 months
  3. When does an IAR application typically become effective?
    after 30 days an application has been submitted
  4. When does an IAR's registration expire?
    The registration for an investment adviser must be renewed by December 31st each year
  5. What are the net capital requirements for an IAR?
    There are no net-capital requirements for IRA's
  6. What is the most common post registration requirement for an IAR?
    very few, aside from the IAR's breaking the law and the IAR's renewing his or her registration in a timely manner. Many states require an IAR to engage in some type of continuing education during each renewal period
  7. When must a state be notified of a terminated IAR?
    falls on the responsibility of the Investment Advisor...The Uniform Securities Act says "promptly"
  8. What are the ten different categories for which IAR's may have disciplinary action taken against their registration?
    • 1. Filing Incomplete applicaitons
    • 2. Violating State Securities Regulations
    • 3. Within the last 10yrs, having prior Felony Convictions or Securities Related Misdemeanors
    • 4. Receiving Court-Ordered Limitiations
    • 5. Receiving Prior Disciplinary Orders of the Administrator
    • 6. Within the last 10yrs, Violations of the Other Securities Acts
    • 7. Engaging in Unethical Behavior
    • 8. Insolvency
    • 9. Securities Violations in Foreign Jurisdictions
    • 10. Failing to Demonstrate Qualification as an Adviser Representative
    • 11. Failure to file required paperwork
  9. Key distinguishing feature between an investment adviser and an IAR?
    • The IAR works for the adviser, 
    • hence IAR provide investment advice under the supervision of the Investment Adviser, there are no net capital requirements for IAR's employed by an advisory firm and pass a background check
  10. Who is responsible for supervising individuals who work for them as investment adviser representatives, even if the representatives are employed as independent contractors?
    Investment Adviser
  11. Partners, officers and directors of an investment adviser are automatically registered as ________ of the investment adviser when the firm registers as an investment adviser.
Card Set
Note Cards 2
Investment Adviser Representative