Q:

Which of the following qualifies as an Investment Advisor Representative?

I. Victoria Seagle, Vice President of Sales at GoodHands Capital Management
II. Jason Black, who files for IRS extensions at an accounting firm, which is a sister company of GoodHands Capital Management
III. Stacey Linter, a sales executive who brings in new accounts to GoodHands
IV. Joshua Johnson, a financial reporter who covers stories about Good Hands for the Wall Street Journal
a) I, II & III
b) I & III
c) II, III & IV
d) All of the Above

A:
The correct answer is b.
An Investment Advisor Representative (IAR) is defined as any partner, officer, or other individual affiliated with an Investment Advisor that meet the following criteria:
a) makes recommendations or gives advice pertaining to securities;
b) manages accounts or portfolios for clients;
c) determines the type of advice or recommendation will be given;
d) sells, negotiates or offers the sale of investment advisory services and/or;
e) supervises the employees who perform any of these functions.

Victoria is an officer and a supervisor and fits "e" in the criteria definition. Stacey is a sales person and fits "d" in the definition. Jason''s work is clerical and does not work for GoodHands, therefore, he does not meet the definition. Joshua from the Wall Street Journal fits none of the criteria either.


MORE FAQS

  1. Which of the following signatures are required on a client’s new account form ...

  2. If a sales representative moves from one broker-dealer to another ...

  3. Which of the following are not types of open-end management investment companies ...

  4. In your initial meeting with an investment advisor representative (IAR) ...

  5. Which of the following are tools that are employed by the Federal Reserve in its efforts to control the money supply?

  6. An advisor has all client advisory fees automatically deducted from their accounts by the custodian. 

  7. Which of the following statements is (are) true with respect to setting the proper constraints in managing ...

  8. Under the Uniform Securities Act, registration with the Administrator as an investment adviser is required ...

  9. Which of the following statements is (are) true with respect to the factors that a manager must take ...

  10. Under the Telephone Consumer Act of 1991, a telemarketer must provide which of the following to a called ...

  11. Under the Uniform Securities Act, which of the following are defined as securities ...

  12. Federal covered securities are subject to which of the following requirements ...

  13. Which TWO statements are TRUE about writing covered calls? I ...

  14. What is Warren Buffett's annual salary at Berkshire Hathaway?

  15. Which United States Presidents have run the largest budget deficits?

  16. Which country has the most gold?

  17. Human capital vs. physical capital: What is the difference?

  18. Can moving to a higher tax bracket cause me to have a lower net income?

  19. How did the financial crisis affect the banking sector?

  20. Do beneficiaries pay taxes on life insurance?

RELATED FAQS

  1. Which of the following signatures are required on a client’s new account form ... ...

    The correct answer is B. While local practices of a broker-dealer might require the client to sign the form, even when opening ...
  2. If a sales representative moves from one broker-dealer to another ...

    The correct answer is b. I, II and III are correct since all parties are required to notify the Administrator.
  3. Which of the following are not types of open-end management investment companies ...

    The correct answer is d) Hedge funds are extremely aggressive entities that engage in margin and short-selling.  They are ...
  4. In your initial meeting with an investment advisor representative (IAR) ...

    The correct answer is b): The investment advisor representative (IAR) can tell the prospective client all of the following ...
  5. Which of the following are tools that are employed by the Federal Reserve in its ...

    I. Moral suasionII. Changing the discount rateIII. Changing the reserve requirementIV. Changing the prime interest rate A. ...
  6. An advisor has all client advisory fees automatically deducted from their accounts ...

    The correct answer is c) An advisor is not deemed to have custody of client funds when debiting management fees from the ...
RELATED TERMS
  1. Investment Advisor

    As defined by the Investment Advisors Act of 1940, any person ...
  2. Federal Covered Advisor

    An investment advisor in the United States that manages more ...
  3. Registered Investment Advisor - RIA

    An advisor or firm engaged in the investment advisory business ...
  4. Advisor

    1. The person or company responsible for making investments on ...
  5. Investment Advisory Representative - IAR

    Personnel that work for investment advisory companies whose main ...
  6. Fee-Based Investment

    An investment account in which the advisor's compensation is ...
Hot Definitions
  1. Put Option

    An option contract giving the owner the right, but not the obligation, to sell a specified amount of an underlying security ...
  2. Frexit

    Frexit – short for "French exit" – is a French spinoff of the term Brexit, which emerged when the United Kingdom voted to ...
  3. AAA

    The highest possible rating assigned to the bonds of an issuer by credit rating agencies. An issuer that is rated AAA has ...
  4. GBP

    The abbreviation for the British pound sterling, the official currency of the United Kingdom, the British Overseas Territories ...
  5. Diversification

    A risk management technique that mixes a wide variety of investments within a portfolio. The rationale behind this technique ...
  6. European Union - EU

    A group of European countries that participates in the world economy as one economic unit and operates under one official ...
Trading Center