Series 63 practice questionmediumannual updates
An IA discovers an error in the assets under management figure reported in its last Form ADV annual amendment. What must the IA do under the USA?
- APromptly file an amendment to correct the error✓ Correct answer
- BWait until the next annual update
- CNotify all clients by mail
- DTake no action if the error is minor
Explanation
Why A — Promptly file an amendment to correct the error
Material errors require prompt amendment (Rule 203-1). Waiting is not compliant if the error is material, and direct client notification is not required unless directed by the Administrator.
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