Series 66 – Practice Test 2

Which of the below are not considered securities?

When a bank liquidates securities that have been hypothecated as loan collateral due to a default by the borrower:

Each of the following entities may claim an exclusion from being defined as an investment adviser with the exception of:

As interest rates rise, which of the below is least likely to decline in value?

Financial service businesses, including but not limited to broker-dealers and investment advisory firms, are required to have in place disaster and other significant negative event plans in place to at least in part, enable communications with customers, regulators, vendors, and employees. Collectively these plans are referred to by the regulatory authorities as:

Certain of the self regulatory authorities require periodic disclosure of political contributions made by investment professionals to the campaigns of candidates seeking election to positions of influence over the allocation of federal, state and/or local financial business, including securities underwriting business.

When such contributions are made, which of the following statements is accurate?

1. Disclosure is only required if the contributions exceed a minimum dollar level.
2. Disclosure to the regulatory authorities is required on a quarterly basis at a minimum.
3. The dollar limits place upon such contributions is a per election standard, not an annual standard.
4. Any individual making contributions without providing his or her firm disclosure is considered statutorily disqualified from being an RR or an IAR for a minimum of 10 years after the violation.

Regulation S-P allows financial industry firms to obtain personal private information about customer/clients in all the following ways except:

No agent or IAR may represent his or her professional credentials as including any form of ‘senior’ specialization or certification absent:

An IA client of yours is CEO of a publicly-traded corporation. Among the rules with which you need to be familiar when servicing clients such as this include each of the below except:

The NSMI Act of 1996 set forth for the first time a set of criteria by which to differentiate IA registration responsibilities. Choose from the below the most accurate statement describing these impact of these criteria.

1. AUM is the most significant of the differentiating criteria.
2. An IA filing Form ADV showing expected aggregate client portfolio assets in excess of $100,000,000 will register with the SEC.
3. An IA filing Form ADV showing expected aggregate client portfolio assets in excess of $30,000,000 will register with the SEC.
4. Performance-based IA fee structures are no longer permitted absent special dispensation from the appropriate regulatory agency.