SIE Module 10 Test Bank


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1. An investment adviser registered with the state wants to take custody of a client’s securities. Which of the following would be required?

2. Which one of the following would be considered a qualified custodian under NASAA rules?

3. Which one of the following represents a requirement that must be satisfied if a registered investment adviser maintains custody of a client’s funds?

4. Rick is an adviser that has discretionary authority over his clients’ securities. Rick, however, does not have custody of the clients’ securities. Rick is required to maintain a minimum net worth balance of:

5. An investment adviser can release confidential client information in all the following circumstances EXCEPT:

6. Robert has been working with Trey, a client, whose main objective is reducing risk in his investment portfolio. Robert informs Trey that in order to accomplish that goal, he first needs Trey to provide him with a copy of his most recent investment statement. Months go by, yet Trey has failed to give Robert a copy of the investment statement. Trey then pressures Robert for a suitable recommendation based on what he has told Robert about the portfolio. Of the following options, which action should Robert take?

7. Jake has a Series 7 license and can sell annuities exclusively from The Annuity Company. Jake reviewed data gathered from his engagement with a new client, Marie. Marie is currently 61 years old, is risk averse, and has indicated that she will need an income stream in four years. Jake disclosed to Marie that he only sells annuities from The Annuity Company, and he is compensated for these sales. Jake suggested she purchase a flexible-premium fixed annuity with a 7% commission. Was Jake’s recommendation suitable?

8. Which one of the following would represent a violation of the suitability rule?

9. Which one of the following statements is correct regarding anti-money laundering regulations?

10. U.S. financial institutions are required to file a currency transaction report with FinCEN for each deposit, withdrawal, exchange of currency, or other payment which involves a transaction in currency of more than: