Monday, June 24, 2013

What do Series 65 and Series 66 exam questions look like?

Having taken the Series 65 exam just two days ago, I am only able to remember the topics that my particular randomly-generated batch of 130 questions brought up. I can't remember any question verbatim, and I'm not sure how much it would help, even if I could. What I can do is tell you that the following represents the kind of topic, level of difficulty, and attitude of a challenging Series 65 or Series 66 exam question:

Which of the following investment advisers must indicate that it maintains custody of client assets on Form ADV Part 1?
A. An adviser that receives quarterly management fees directly from the custodian with client consent
B. An adviser who provides a list of unaffiliated custodial firms to its advisory clients free of charge
C. An adviser that is affiliated with a bank, savings institution, or trust company
D. None because advisers indicate such information on Form ADV Part 2 only as a result of Dodd-Frank

Rather than provide the answer right away, let's see if any of you anonymous readers are brave enough to give your answer AND your explanation for choosing it first. Time to make this blog interactive, people.
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  1. was afraid of that--nobody wants to be wrong in public. An inherent problem for us and social media.

  2. Well I think that I will give it a shot.

    I think the answer is A. I eliminated B because it sounded fine to me that an adviser can give his/her client a list of other firms that provide a different service. C sounds like one of those answers that are always an exception (it could be a trick). ADV Part 2 is basically a brochure section that provides potential clients with information about the firm/person. It was a tossup between A and D, but “maintain custody” sounds more like the nuts and bolts of how the firm conducts business which is section 1.

    The answer is A?

    1. actually, the answer is . . . A. Nice job, Marty Collins. The reason the adviser has custody is that they are, by definition, appropriating client assets without going to the client.

  3. Hi there, I am preparing to study for the series 66 exam. I have the series 7 book as well. I was wondering... do you know of any on-line study groups or forums that are free to interact with other people studying for the testing? Face-book is not my cup of tea. Any information you have would be valuable and most appreciated. Thank you. MB

  4. We don't know of online study groups, but if you find any, can you post them here, please? How would the forum work? A bulletin board of commentary? Or, more like a Skype session with people doing questions together?