Question

which two of the following statements regarding investment advisory contracts are true? under the uniform securities act, ia contract must be written under the uniform securities act, ia contracts are not required to be written under the investment advisers act of 1940, ia contracts must be written under the investment advisers act of 1940, ia contracts are not required to be written

Answer 1

Investment advisory contracts must be in writing under the Investment Advisers Act of 1940, while the Uniform Securities Act does not require them to be in writing, but states often require written contracts.

Step-by-step explanation:

Under the Investment Advisers Act of 1940, investment advisory contracts must be in writing to ensure that the terms of the contract are clearly spelled out and enforceable. This federal regulation serves to protect customers by providing a definite record of the agreement between the investment advisor and the client.

On the other hand, the Uniform Securities Act does not mandate that investment advisory contracts be written, but most states have implemented rules that require written contracts as a best practice within their jurisdictions.