IACCP (MASTER TERMS) LATEST
UPDATED 2024/2025
Assignment - Correct Answer Any direct or indirect transfer or hypothecation of an investment advisory contract by the assignor Who is not an Investment Advisor? - Correct Answer A Bank, Lawyer, accountant, engineer, teach whose performance of such services is solely incidental to the practice of his profession, Broker-dealer (commission only)published of any bona fide newspaper, magazine, business publication, rating systems (Moodys, etc.) What does it mean when someone has "Control"? - Correct Answer Power to exercise a controlling influence over the management or policies of a compny Investment supervisory services - Correct Answer Giving of continuous advice as to the investment of funds on the basis of the individual needs of each client National securities exchange - Correct Answer an exchange registered under section 6 of the Securities Exchange Act of 1934 Person - Correct Answer Natural person or company Not Securities - Correct Answer Commodity Futures, Fixed Annuities Securities Act of 1933 Securities Exchange Act of 1934 Trust Indenture Act of 1939 - Correct Answer Acts respectively, heretofore or hereafter amended What is a Business Development Company? - Correct Answer A company must be registered in compliance with Section 54 of the Investment Company Act of 1940 to qualify as a BDC. A major difference between a BDC and a venture capital fund is that BDCs allow smaller, non-accredited investors to invest in startup companies.A BDC is a type of closed-end fund that makes investments in developing companies and firms that are financially distressed. 1 / 3
What is an underwriter? - Correct Answer Works closely with the issuing body to determine the offering price of the securities, buys them from the issuer, and sells them to investors via the underwriter's distribution network. Underwriters generally receive underwriting fees from their issuing clients, but they also can earn profits when selling the underwritten shares to investors.What is a Foreign Private Advisor? - Correct Answer No US, fewer than 15 clients in US in private funds, aggregate assets under management US clients in private funds of less than $25 million. Does not hold self out in the US public as an Investment Adviser; nor acts as An Investment Adviser to any investment company registered under the Investment Company Act of 1940 What is a Commodity Pool Operator (CPO)? - Correct Answer A CPO is an individual or organization which operates a commodity pool and solicits funds for that commodity pool.What is a Commodity Pool? - Correct Answer An enterprise in which funds contributed by a number of persons are combined for the purpose of trading futures contracts, options on futures, retail off- exchange forex contracts or swaps, or to invest in another commodity pool.What is a Commodity Trading Advisor (CTA) - Correct Answer A US financial regulatory term for an individual or organization who is retained by a fund or individual client to provide advice and services related to trading in futures contracts, commodity options and/or swaps. They are responsible for the trading within managed futures accounts.What is a Swap - Correct Answer A derivative contract through which two parties exchange financial instruments. These instruments can be almost anything, but most swaps involve cash flows based on a notional principal amount that both parties agree to. Usually, the principal does not change hands. Each cash flow comprises one leg of the swap. One cash flow is generally fixed, while the other is variable, that is, based on a a benchmark interest rate, floating currency exchange rate or index price.The most common kind of swap is an interest rate swap. Swaps do not trade on exchanges, and retail investors do not generally engage in swaps. Rather, swaps are over-the-counter contracts between businesses or financial institutions.What is a Swap Dealer? - Correct Answer An individual who acts as the counterparty in a swap agreement for a fee called a spread. Swap dealers are the market makers for the swap market. The spread represents the difference between the wholesale price for trades and the retail price. Because swap arrangements aren't actively traded, swap dealers allow brokers to standardize swap contracts to some extent. 2 / 3
What is Swap Execution Facility? - Correct Answer A platform for financial swap trading that provides pre-trade information (i.e. bid and offer prices) and a mechanism for executing swap transactions among eligible participants.Penalties - Correct Answer 1st Tier - Max Penalty for each act $5,000/natural person or $50,000 for any other person 2nd Tier $50,000 for each act or omission natural person or $250,000 for any other person (Fraud, deceit, manipulation or deliberate or reckless disregard) 3rd Tier $100,000 each act natural person or $500,000 for any other person (Fraud, deceit, manipulation or deliberate or reckless disregard, and if substantial losses or created a significant risk of substantial losses to other persons) Violations could result in - Correct Answer Accounting and disgorgement Cease and Desist Proceedings Hearing Temporary Order Investment Advisor - Correct Answer An investment advisor is defined by the Investment Advisors Act of 1940, as any person or group that makes investment recommendations or conducts securities analysis in return for a fee, whether through direct management of client assets or via written publications.Who are Advisory Affiliates? - Correct Answer (1) all of your officers, partners, or directors (or any person performing similar functions); (2) all persons directly or indirectly controlling or controlled by you; and (3) all of your current employees (other than employees performing only clerical, administrative, ...What AUM requires SEC Registration? - Correct Answer Over $100 Million What is an "Investment Advisor? - Correct Answer Person/firm compensated for engaging in business of (directly or indirectly) advising others on securities or the advisability of investing (or) who issues analysis/reports concerning securities
- / 3