All of the following are representative of soft dollars payment EXCEPT:
Answer(s): D
Compensation arrangements between investment advisors and broker-dealers may be made in non-cash payments, also known as soft dollars. Such payments may include in-house or third party research as well as computer software. This is permitted provided that disclosures are made on client confirmations and that it can be proved that the advisor is using the information for decision-making on client recommendations. It is not permissible to make non-cash payments in the form of travel expenses, computer hardware, furniture, office space or other overhead expenses
Which of the following are NOT required to register with the SEC as a federally- covered investment adviser?
Answer(s): A
Typically, while smaller investment advisors must register with the state, larger investment advisors must register with the SEC. Investment Advisors with $30 million dollars in assets under management must register with the SEC. Investment Advisors with between $25 million and $30 million have the option of registering with the SEC instead of the state, but it is not mandatory that they do so
Keith Maylor, a registered advisor with Zenith Phoenix Capital Management, works with his client, Davis Johnson, of Johnson Value Funds, at the end of each fiscal year. He charges Johnson $10,000 for a strategy session and the delivery of other advisory services surrounding the mutual fund''s performance. Is Mr Maylor required to deliver an annual disclosure document to Mr Johnson?
Answer(s): B
A registered investment advisor is required to send an annual disclosure document to all clients, except investment companies, or to clients who seek impersonal advisory services that require payment of less than $200
Peter D'Angelo works as an investment advisor representative for GotRox, Gold and Partners (GRG&P) Investments. GRG&P is a federally covered investment advisor. Peter will be opening an office under GRG&P's name in New Jersey. Does Peter have to register with New Jersey?
An investment advisor representative who works for a federally covered investment advisor is typically required to register in every state in which the representative has a place of business. Therefore, Peter would need to register with the state of New Jersey. His employment under GRG&P covers him under federal law and he does not have to apply for SEC registration
Under the Uniform Securities Act, which of the following is NOT considered a security?
Under the Uniform Securities Act, all options define a security, with the exception of life insurance
Post your Comments and Discuss FINRA SERIES 66 exam prep with other Community members:
Our website is free, but we have to fight against AI bots and content theft. We're sorry for the inconvenience caused by these security measures. You can access the rest of the SERIES 66 content, but please register or login to continue.