Investment Advisers Act of 1940 Flashcard

Front

What is the primary purpose of the Investment Advisers Act of 1940?

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To regulate investment advisers and their conduct

Front

Under the Investment Advisers Act of 1940, who is required to register as an investment adviser?

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Any person or firm receiving compensation for advising others on investments.

Front

What is the minimum asset management requirement for an investment adviser to be exempt from registration under the Investment Advisers Act of 1940?

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$100 million

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Which of the following is NOT a fiduciary duty required of investment advisers under the Investment Advisers Act of 1940? Duty of loyalty, Duty of care, Duty of confidentiality, Duty to guarantee returns

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Duty to guarantee returns

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Which regulatory body enforces the Investment Advisers Act of 1940?

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U.S. Securities and Exchange Commission (SEC)

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Which of the following is required to be filed by an investment adviser when registering under the Investment Advisers Act of 1940? Form 10-K, Form ADV, Form 13D, Form S-1

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Form ADV

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Which of the following is a common exemption from registration as an investment adviser under the Investment Advisers Act of 1940? Advising only institutional investors, Managing a mutual fund, Providing advisory services to clients overseas, Only offering advice related to tax preparation

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Advising only institutional investors

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The "custody rule" under the Investment Advisers Act of 1940 requires investment advisers to:

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Notify clients annually of their account balances

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Which of the following is true about the "anti-fraud provisions" of the Investment Advisers Act of 1940? They apply only to advisers managing assets over $100 million, They prohibit misleading or fraudulent statements by investment advisers, They focus only on the sale of mutual funds, They allow investment advisers to use performance guarantees

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They prohibit misleading or fraudulent statements by investment advisers

Front

Which type of clients are considered "qualified clients" under the Investment Advisers Act of 1940?

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Investors with at least $1 million in assets or $2.1 million in net worth