IACCP MASTER TERMS NRS IACCP EXAM
2026 COMPREHENSIVE STUDY GUIDE FULL
SOLUTIONS PASSED A+
◉ Who is not an Investment Advisor?. Answer: A Bank, Lawyer,
accountant, engineer, teach whose performance of such services is solely
incidental to the practice of his profession, Broker-dealer (commission
only)published of any bona fide newspaper, magazine, business
publication, rating systems (Moodys, etc.)
◉ What does it mean when someone has "Control"?. Answer: Power to
exercise a controlling influence over the management or policies of a
compny
◉ Investment supervisory services. Answer: Giving of continuous
advice as to the investment of funds on the basis of the individual needs
of each client
◉ National securities exchange. Answer: an exchange registered under
section 6 of the Securities Exchange Act of 1934
◉ Person. Answer: Natural person or company
◉ Not Securities. Answer: Commodity Futures, Fixed Annuities
,◉ Securities Act of 1933 Securities Exchange Act of 1934 Trust
Indenture Act of 1939. Answer: Acts respectively, heretofore or hereafter
amended
◉ What is a Business Development Company?. Answer: A company
must be registered in compliance with Section 54 of the Investment
Company Act of 1940 to qualify as a BDC. A major difference between
a BDC and a venture capital fund is that BDCs allow smaller, non-
accredited investors to invest in startup companies.
A BDC is a type of closed-end fund that makes investments in
developing companies and firms that are financially distressed.
◉ What is an underwriter?. Answer: Works closely with the issuing
body to determine the offering price of the securities, buys them from
the issuer, and sells them to investors via the underwriter's distribution
network. Underwriters generally receive underwriting fees from their
issuing clients, but they also can earn profits when selling the
underwritten shares to investors.
◉ What is a Foreign Private Advisor?. Answer: No US, fewer than 15
clients in US in private funds, aggregate assets under management US
clients in private funds of less than $25 million. Does not hold self out in
the US public as an Investment Adviser; nor acts as An Investment
Adviser to any investment company registered under the Investment
Company Act of 1940
,◉ What is a Commodity Pool Operator (CPO)?. Answer: A CPO is an
individual or organization which operates a commodity pool and solicits
funds for that commodity pool.
◉ What is a Commodity Pool?. Answer: An enterprise in which funds
contributed by a number of persons are combined for the purpose of
trading futures contracts, options on futures, retail off-exchange forex
contracts or swaps, or to invest in another commodity pool.
◉ What is a Commodity Trading Advisor (CTA). Answer: A US
financial regulatory term for an individual or organization who is
retained by a fund or individual client to provide advice and services
related to trading in futures contracts, commodity options and/or swaps.
They are responsible for the trading within managed futures accounts.
◉ What is a Swap. Answer: A derivative contract through which two
parties exchange financial instruments. These instruments can be almost
anything, but most swaps involve cash flows based on a notional
principal amount that both parties agree to. Usually, the principal does
not change hands. Each cash flow comprises one leg of the swap. One
cash flow is generally fixed, while the other is variable, that is, based on
a a benchmark interest rate, floating currency exchange rate or index
price.
The most common kind of swap is an interest rate swap. Swaps do not
trade on exchanges, and retail investors do not generally engage in
, swaps. Rather, swaps are over-the-counter contracts between businesses
or financial institutions.
◉ What is a Swap Dealer?. Answer: An individual who acts as the
counterparty in a swap agreement for a fee called a spread. Swap dealers
are the market makers for the swap market. The spread represents the
difference between the wholesale price for trades and the retail price.
Because swap arrangements aren't actively traded, swap dealers allow
brokers to standardize swap contracts to some extent.
◉ What is Swap Execution Facility?. Answer: A platform for financial
swap trading that provides pre-trade information (i.e. bid and offer
prices) and a mechanism for executing swap transactions among eligible
participants.
◉ Penalties. Answer: 1st Tier - Max Penalty for each act $5,000/natural
person or $50,000 for any other person
2nd Tier $50,000 for each act or omission natural person or $250,000 for
any other person (Fraud, deceit, manipulation or deliberate or reckless
disregard)
3rd Tier $100,000 each act natural person or $500,000 for any other
person (Fraud, deceit, manipulation or deliberate or reckless disregard,
and if substantial losses or created a significant risk of substantial losses
to other persons)
◉ Violations could result in. Answer: Accounting and disgorgement
2026 COMPREHENSIVE STUDY GUIDE FULL
SOLUTIONS PASSED A+
◉ Who is not an Investment Advisor?. Answer: A Bank, Lawyer,
accountant, engineer, teach whose performance of such services is solely
incidental to the practice of his profession, Broker-dealer (commission
only)published of any bona fide newspaper, magazine, business
publication, rating systems (Moodys, etc.)
◉ What does it mean when someone has "Control"?. Answer: Power to
exercise a controlling influence over the management or policies of a
compny
◉ Investment supervisory services. Answer: Giving of continuous
advice as to the investment of funds on the basis of the individual needs
of each client
◉ National securities exchange. Answer: an exchange registered under
section 6 of the Securities Exchange Act of 1934
◉ Person. Answer: Natural person or company
◉ Not Securities. Answer: Commodity Futures, Fixed Annuities
,◉ Securities Act of 1933 Securities Exchange Act of 1934 Trust
Indenture Act of 1939. Answer: Acts respectively, heretofore or hereafter
amended
◉ What is a Business Development Company?. Answer: A company
must be registered in compliance with Section 54 of the Investment
Company Act of 1940 to qualify as a BDC. A major difference between
a BDC and a venture capital fund is that BDCs allow smaller, non-
accredited investors to invest in startup companies.
A BDC is a type of closed-end fund that makes investments in
developing companies and firms that are financially distressed.
◉ What is an underwriter?. Answer: Works closely with the issuing
body to determine the offering price of the securities, buys them from
the issuer, and sells them to investors via the underwriter's distribution
network. Underwriters generally receive underwriting fees from their
issuing clients, but they also can earn profits when selling the
underwritten shares to investors.
◉ What is a Foreign Private Advisor?. Answer: No US, fewer than 15
clients in US in private funds, aggregate assets under management US
clients in private funds of less than $25 million. Does not hold self out in
the US public as an Investment Adviser; nor acts as An Investment
Adviser to any investment company registered under the Investment
Company Act of 1940
,◉ What is a Commodity Pool Operator (CPO)?. Answer: A CPO is an
individual or organization which operates a commodity pool and solicits
funds for that commodity pool.
◉ What is a Commodity Pool?. Answer: An enterprise in which funds
contributed by a number of persons are combined for the purpose of
trading futures contracts, options on futures, retail off-exchange forex
contracts or swaps, or to invest in another commodity pool.
◉ What is a Commodity Trading Advisor (CTA). Answer: A US
financial regulatory term for an individual or organization who is
retained by a fund or individual client to provide advice and services
related to trading in futures contracts, commodity options and/or swaps.
They are responsible for the trading within managed futures accounts.
◉ What is a Swap. Answer: A derivative contract through which two
parties exchange financial instruments. These instruments can be almost
anything, but most swaps involve cash flows based on a notional
principal amount that both parties agree to. Usually, the principal does
not change hands. Each cash flow comprises one leg of the swap. One
cash flow is generally fixed, while the other is variable, that is, based on
a a benchmark interest rate, floating currency exchange rate or index
price.
The most common kind of swap is an interest rate swap. Swaps do not
trade on exchanges, and retail investors do not generally engage in
, swaps. Rather, swaps are over-the-counter contracts between businesses
or financial institutions.
◉ What is a Swap Dealer?. Answer: An individual who acts as the
counterparty in a swap agreement for a fee called a spread. Swap dealers
are the market makers for the swap market. The spread represents the
difference between the wholesale price for trades and the retail price.
Because swap arrangements aren't actively traded, swap dealers allow
brokers to standardize swap contracts to some extent.
◉ What is Swap Execution Facility?. Answer: A platform for financial
swap trading that provides pre-trade information (i.e. bid and offer
prices) and a mechanism for executing swap transactions among eligible
participants.
◉ Penalties. Answer: 1st Tier - Max Penalty for each act $5,000/natural
person or $50,000 for any other person
2nd Tier $50,000 for each act or omission natural person or $250,000 for
any other person (Fraud, deceit, manipulation or deliberate or reckless
disregard)
3rd Tier $100,000 each act natural person or $500,000 for any other
person (Fraud, deceit, manipulation or deliberate or reckless disregard,
and if substantial losses or created a significant risk of substantial losses
to other persons)
◉ Violations could result in. Answer: Accounting and disgorgement
