Series 63 practice questionmediumbalance sheet delivery
A client prepays $2,000 in advisory fees to a state-registered IA, six months in advance. The IA does NOT have custody of client assets. Under the USA, what must the IA provide to the client?
- AAn annual audited balance sheet✓ Correct answer
- BA quarterly statement
- CNo special balance sheet delivery required
- DA daily account reconciliation
Explanation
Why A — An annual audited balance sheet
Prepayment of more than $500 six months in advance triggers the requirement under the USA for delivery of an audited balance sheet, even if the adviser does not have custody of client assets.
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