Series 66 Practice Exam

The NSMI Act of 1996 set forth for the first time a set of criteria by which to differentiate IA registration responsibilities. Choose from the below the most accurate statement describing these impact of these criteria.

I.    AUM is the most significant of the differentiating criteria.

II.   An IA filing Form ADV showing expected aggregate client portfolio assets in excess of $100,000,000 will register with the SEC.

III.  An IA filing Form ADV showing expected aggregate client portfolio assets in excess of $30,000,000 will register with the SEC.

IV.  Performance-based IA fee structures are no longer permitted absent special dispensation from the appropriate regulatory agency.

The principal difference between a listed REIT and an unlisted REIT is:

The phase of the business cycle immediately preceding recovery is:

When the long end of the yield curve is yielding a similar return to the intermediate and short end of the curve, analysts describe this as a:

Variable life insurance has a number of similarities to the variable annuity. Among those would be:

Under the USA, when an Administrator wishes to conduct an inspection of an office of a broker-dealer or IA,

Under the Investment Advisor Act of 1940, exclusions from the definition of investment adviser include:

The Brochure Rule applies to:

When an IA fills a client order to buy as principal:

If the projected return of a portfolio is that over the next 12 months, there is a 40% likelihood it will return 15%, there is a 30% likelihood it will return 8%, and there is a 30% likelihood it will return minus 5%, what is the expected return of this portfolio over the next 12 months?

When looking at an investment grade debt instrument with a 15 year maturity, the risk to which it has the greatest exposure in the early years of holding the investment is:

Which of the below are not considered securities?

When a bank liquidates securities that have been hypothecated as loan collateral due to a default by the borrower:

Each of the following entities may claim an exclusion from being defined as an investment adviser with the exception of:

As interest rates rise, which of the below is least likely to decline in value?

Financial service businesses, including but not limited to broker-dealers and investment advisory firms, are required to have in place disaster and other significant negative event plans in place to at least in part, enable communications with customers, regulators, vendors, and employees. Collectively these plans are referred to by the regulatory authorities as:

Certain of the self regulatory authorities require periodic disclosure of political contributions made by investment professionals to the campaigns of candidates seeking election to positions of influence over the allocation of federal, state and/or local financial business, including securities underwriting business.

When such contributions are made, which of the following statements is accurate?

I.    Disclosure is only required if the contributions exceed a minimum dollar level.

II.   Disclosure to the regulatory authorities is required on a quarterly basis at a minimum.

III.  The dollar limits place upon such contributions is a per election standard, not an annual standard.

IV.  Any individual making contributions without providing his or her firm disclosure is considered statutorily disqualified from being an RR or an IAR for a minimum of 10 years after the violation.

Regulation S-P allows financial industry firms to obtain personal private information about customer/clients in all the following ways except:

No agent or IAR may represent his or her professional credentials as including any form of ‘senior’ specialization or certification absent:

An IA client of yours is CEO of a publicly-traded corporation. Among the rules with which you need to be familiar when servicing clients such as this include each of the below except: