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Series 63: Regulation of Investment Advisers
Series 63 practice questionhardAll of the following EXCEPT — ADV delivery and custody nuances

All of the following scenarios require prompt client notification or delivery of specific documents under the Uniform Securities Act EXCEPT:

  1. ADiscovery of a material inaccuracy in Form ADV Part 2
  2. BInitiation of a surprise custody examination by an independent accountant✓ Correct answer
  3. CA client’s written request for all recent account records
  4. DReceipt of client assets in an account, where the adviser is deemed to have custody for the first time
Explanation

Why BInitiation of a surprise custody examination by an independent accountant

A surprise exam does not require notice to clients; it is an internal compliance measure. The other events require communication or document delivery (USA §411, Model Rule 204-3, Custody Rule).

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