IACCP Exam Study Guide WITH SOLUTIONS

C. The promoter is not subject to statutory disqualification. D. Any cash fee is paid pursuant to a written agreement. ANSWER-A. The client must be provided by the adviser or promoter with certain disclosure statements regarding compensation and conflicts of interest. C. The promoter is not subject to statutory disqualification. D. Any cash fee is paid pursuant to a written agreement. Which THREE items must be included on an order memorandum as required by the Books and Records Rule under the Investment Advisers Act of 1940? (Choose three.) A. Date the order was entered with the broker. B. Identification of discretionary/non-discretionary authority. C. Name of the individual entering the order. D. Name of the exchange involved. ANSWER-A. Date the order was entered with the broker. B. Identification of discretionary/non-discretionary authority. C. Name of the individual entering the order. A portfolio manager actively trades securities in her personal account that are also held in client accounts that she manages. The Chief Compliance Officer is aware of this and should track which TWO Potential activities of the portfolio manager, according to best practices? (Choose two.) A. Effecting agency cross transactions. B. Taking investment opportunities from a client for the portfolio manager’s Benefit. C. Failing to provide disclosure in connection with directed brokerage Arrangements. D. Frontrunning. ANSWER-B. Taking investment opportunities from a client for the portfolio manager’s benefit. D. Frontrunning. Adviser manages securities and non-securities investments for four very wealthy clients. Each client’s portfolio is as follows: Client 1 – 70% in securities, 10% in cash, 20% in real estate Client 2 – 60% in securities, 10% in cash, 30% in real estate Client 3 – 50% in securities, 5% in cash, 45% in real estate Client 4 – 40% in securities, 5% in cash, 55% in real estate