Series 63 practice questionmediumTiming of Form ADV delivery
Which brochure-delivery arrangement satisfies the standard NASAA advisory-contract rule?
- ADeliver the brochure only after the first advisory fee is collected
- BDeliver it at least 48 hours before contract execution, or at execution if the client may terminate without penalty within five business days✓ Correct answer
- CDeliver it within 30 days after contract execution
- DOmit delivery whenever the client is an institution
Explanation
Why B — Deliver it at least 48 hours before contract execution, or at execution if the client may terminate without penalty within five business days
The standard alternatives are delivery at least 48 hours before entering the advisory contract, or delivery at contract execution when the client has a five-business-day penalty-free termination right. Institutional status does not itself eliminate the delivery requirement.
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