Question

Sam wants to start his own registered investment adviser firm, independent of the brokerage firm where he is registered as an agent. He plans to provide financial planning services, which will include investment advice as an integral part of his business. Sam must:

file with either the state securities Administrator or with the Securities Exchange Commission as a registered investment adviser by filing the appropriate Form ADV.
file Form ADV with his current brokerage firm.
notify his current brokerage firm and receive permission to operate independently from the firm as a registered investment adviser.
do nothing and begin performing investment advisory services without regard to his current brokerage firm

A) II and III.
B) II and IV.
C) I and III.
D) I and IV.

Answer 1

Sam must file with the state securities Administrator or with the SEC as a registered investment adviser and notify his current brokerage firm.

Step-by-step explanation:

Sam wants to start his own registered investment adviser firm, independent of the brokerage firm where he is registered as an agent. He plans to provide financial planning services, which will include investment advice as an integral part of his business.

To start his own registered investment adviser firm, Sam must file with either the state securities Administrator or with the Securities Exchange Commission as a registered investment adviser by filing the appropriate Form ADV. This is required to comply with the regulations and laws governing investment advisers.

Therefore, the correct option is A) II and III - Sam must file with either the state securities Administrator or with the Securities Exchange Commission as a registered investment adviser by filing the appropriate Form ADV and also notify his current brokerage firm and receive permission to operate independently from the firm as a registered investment adviser.