Page 1 of 139
IACCP MASTER QUESTION BANK NEWEST 2025|
COMPLETE QUESTIONS AND CORRECT DETAILED
ANSWERS (VERIFIED ANSWERS) ALREADY GRADED
A+|| BRAND NEW!!
The SMC Capital, Inc. No-Action Letter (September 5, 1995)
states that trade allocations may occur:
A. Only on a rotational basis
B. On a pro rata basis but other allocation methods can be used
without violating the Advisers Act
C. Only on a pro rata basis
D. Based on the trader's good faith discretion .....ANSWER..... B.
On a pro rata basis but other allocation methods can be used
without violating the Advisers Act
Which of the following should NOT be a factor when evaluating
best execution?
,Page 2 of 139
A. Price
B. Transaction costs
C. Availability of affiliated brokerage services
D. Service and execution capability .....ANSWER..... C.
Availability of affiliated brokerage services
Under the safe harbor provided by Section 28(e) of the
Securities and Exchange Act of 1934, a "mixed use"
product/service, purchased with soft dollars, most likely refers to
which of the following:
A. A research newsletter used by analysts
B. A computer terminal used only to place client trades
C. Portfolio management software used to calculate client returns
D. A junket to Pebble Beach for golf .....ANSWER..... C. Portfolio
management software used to calculate client returns
,Page 3 of 139
An adviser's valuation procedures should, practically speaking,
be prepared with the LEAST attention to:
A. Large cap stocks
B. Illiquid investments
C. Foreign issues
D. Micro cap stocks .....ANSWER..... A. Large cap stocks
Agency cross transactions do NOT require:
A. Annual disclosure to advisory clients of the number of agency
cross transactions
B. Annual disclosure of the total remuneration received by the
adviser through agency cross transactions
C. Consent from at least two advisory clients
D. Disclosures that written consent may be revoked at any time
.....ANSWER..... C. Consent from at least two advisory clients
, Page 4 of 139
"Bailey disclosure" refers to the concept of advising clients of the
effect of directing the adviser to use a particular broker(s).
Disclosure about the ramifications of brokerage direction should
include:
A. Potential conflicts of interest when a directed broker referred
the client to the adviser
B. Limits on the ability of the adviser to negotiate commissions
C. Restrictions on placing directed trades with other client trades
D. All of the above .....ANSWER..... D. All of the above
Which of the following statements is FALSE?
A. Trade errors must be resolved for the client's benefit.
B. Principal transactions require consent prior to settlement.
C. Commissions generated from ERISA plan transactions may
never be used to generate soft dollars.
IACCP MASTER QUESTION BANK NEWEST 2025|
COMPLETE QUESTIONS AND CORRECT DETAILED
ANSWERS (VERIFIED ANSWERS) ALREADY GRADED
A+|| BRAND NEW!!
The SMC Capital, Inc. No-Action Letter (September 5, 1995)
states that trade allocations may occur:
A. Only on a rotational basis
B. On a pro rata basis but other allocation methods can be used
without violating the Advisers Act
C. Only on a pro rata basis
D. Based on the trader's good faith discretion .....ANSWER..... B.
On a pro rata basis but other allocation methods can be used
without violating the Advisers Act
Which of the following should NOT be a factor when evaluating
best execution?
,Page 2 of 139
A. Price
B. Transaction costs
C. Availability of affiliated brokerage services
D. Service and execution capability .....ANSWER..... C.
Availability of affiliated brokerage services
Under the safe harbor provided by Section 28(e) of the
Securities and Exchange Act of 1934, a "mixed use"
product/service, purchased with soft dollars, most likely refers to
which of the following:
A. A research newsletter used by analysts
B. A computer terminal used only to place client trades
C. Portfolio management software used to calculate client returns
D. A junket to Pebble Beach for golf .....ANSWER..... C. Portfolio
management software used to calculate client returns
,Page 3 of 139
An adviser's valuation procedures should, practically speaking,
be prepared with the LEAST attention to:
A. Large cap stocks
B. Illiquid investments
C. Foreign issues
D. Micro cap stocks .....ANSWER..... A. Large cap stocks
Agency cross transactions do NOT require:
A. Annual disclosure to advisory clients of the number of agency
cross transactions
B. Annual disclosure of the total remuneration received by the
adviser through agency cross transactions
C. Consent from at least two advisory clients
D. Disclosures that written consent may be revoked at any time
.....ANSWER..... C. Consent from at least two advisory clients
, Page 4 of 139
"Bailey disclosure" refers to the concept of advising clients of the
effect of directing the adviser to use a particular broker(s).
Disclosure about the ramifications of brokerage direction should
include:
A. Potential conflicts of interest when a directed broker referred
the client to the adviser
B. Limits on the ability of the adviser to negotiate commissions
C. Restrictions on placing directed trades with other client trades
D. All of the above .....ANSWER..... D. All of the above
Which of the following statements is FALSE?
A. Trade errors must be resolved for the client's benefit.
B. Principal transactions require consent prior to settlement.
C. Commissions generated from ERISA plan transactions may
never be used to generate soft dollars.
