Question

Under the Investment Advisers Act of 1940, which of the following statements are TRUE regarding the investment adviser's relationship with a broker-dealer?

I The investment adviser must disclose if it recommends the use of a specific broker-dealer to effect recommended trades
II The investment adviser doesn't have to disclose if it recommends the use of a specific broker-dealer to effect recommended trades
III The customer must effect trades through the broker-dealer of the investment adviser's choosing
IV The customer doesn't have to effect trades through the broker-dealer of the investment adviser's choosing

a. I and III
b. I and IV
c. II and III
d. II and IV

Answer 1

B. I and IV

Step-by-step explanation:

You can check the SEC website for the bill.