IACCP (QE) EXAM QUESTIONS WITH CORRECT ANSWERS

IACCP (QE) EXAM QUESTIONS WITH
CORRECT ANSWERS


Which THREE persons or firms may be excluded from having to register
| | | | | | | | | | | |



under the Investment Advisers Act of 1940? (Choose three.)
| | | | | | | |




A. Accountants whose advisory services pertain solely to incidental
| | | | | | | | |



financial planning.
|




B. Persons or firms whose advice and reports are related solely to U.S.
| | | | | | | | | | | | |



government securities. |




C. Publishers of generally circulated, bona fide newspapers or financial
| | | | | | | | | |



journals.
D. Domestic banks and bank holding companies. - CORRECT
| | | | | | | | |



ANSWER✔✔-B. Persons or firms whose advice and reports are related
| | | | | | | | | |



solely to U.S. government securities.
| | | |




C. Publishers of generally circulated, bona fide newspapers or financial
| | | | | | | | | |



journals.
D. Domestic banks and bank holding companies.
| | | | | |




Which activity is NOT mandated for investment advisers that store
| | | | | | | | | |



required records electronically?
| |

,A. Providing the SEC with prompt access, retrieval, and reproduction.
| | | | | | | | |




B. Maintaining copies of all electronically stored records using WORM
| | | | | | | | | |



format.
C. Arranging and indexing records to provide easy access and retrieval.
| | | | | | | | | |




D. Developing procedures to preserve and maintain records. - CORRECT
| | | | | | | | | |



ANSWER✔✔-B. Maintaining copies of all electronically stored records
| | | | | | | |



using WORM format. | |




The Investment Advisers Act of 1940 defines the scope of the anti-fraud
| | | | | | | | | | | |



provisions as extending to: | | |


|




A. SEC-registered advisers and foreign advisers with a place of business
| | | | | | | | | | |



in the U.S., whether registered or exempt.
| | | | | |




B. SEC-registered advisers and foreign advisers doing business in the
| | | | | | | | | |



U.S., whether registered or exempt.
| | | |




C. SEC-registered investment advisers.
| | |




D. All investment advisers, whether registered or exempt. - CORRECT
| | | | | | | | | |



ANSWER✔✔-D. All investment advisers, whether registered or exempt.
| | | | | | |




The fiduciary duty imposed on advisers under the Investment Advisers
| | | | | | | | | |



Act of 1940 can BEST be described as:
| | | | | | |


|




A. providing equal disclosure to all clients.
| | | | | |

, B. imposing an ERISA fiduciary standard.
| | | | |




C. putting the client's interests ahead of the adviser's.
| | | | | | | |




D. acting in a custodial capacity. - CORRECT ANSWER✔✔-C. putting the
| | | | | | | | | | |



client's interests ahead of the adviser's.
| | | | |




Which TWO qualify as a "security" under the Investment Advisers Act of
| | | | | | | | | | | |



1940? (Choose two.)
| |


|




A. Commodity futures
| |




B. Limited partnership interests
| | |




C. Fixed annuities
| |




D. Variable annuities - CORRECT ANSWER✔✔-B. Limited partnership
| | | | | | | |



interests
D. Variable annuities
| |




In performing due diligence on a potential solicitor, the investment
| | | | | | | | | |



adviser must ensure that the solicitor:
| | | | |



|




A. is not subject to any statutory disqualification.
| | | | | | |




B. is not acting as a solicitor for an unregistered adviser.
| | | | | | | | | |




C. has passed the Series 65 exam.
| | | | | |




D. is registered in appropriate states. - CORRECT ANSWER✔✔-A. is not
| | | | | | | | | | |



subject to any statutory disqualification.
| | | |