SIE Exam Question 978: Answer and Explanation

Question: 978

With certain exceptions, which of the following acts requires that firms or sole practitioners compensated for advising others about securities investments must register with the SEC and conform to regulations designed to protect investors?

• A. Securities Act of 1933
• B. Securities Exchange Act of 1934
• C. Investment Advisers Act of 1940
• D. Investment Company Act of 1940

Correct Answer: C

Explanation:

With certain exceptions, the Investment Advisers Act of 1940 requires that firms or sole practitioners compensated for advising others about securities investments must register with the SEC and conform to regulations designed to protect investors.