Question

According to the NASAA Recordkeeping Requirements for Investment Adviser Model Rule, an IA is required to maintain a record of the names and addresses of any person to whom it has sent any notice, circular, advertisement, offering, report or publication if the number of persons is:

a.10 or fewer
b.10 or more
c.More than 10
d.Less than 10

Answer 1

An Investment Adviser must maintain records of communications sent to 10 or more persons, including notices, circulars, advertisements, and other publications, as per NASAA Model Rule requirements.

Step-by-step explanation:

According to the North American Securities Administrators Association (NASAA) Recordkeeping Requirements for Investment Adviser Model Rule, an Investment Adviser (IA) is obliged to maintain records of communications when certain conditions are met. Specifically, these recordkeeping rules state that an IA must maintain a record of the names and addresses of any person to whom the IA has sent any notice, circular, advertisement, offering, report, or publication if the number of persons is 10 or more. This requirement is set to ensure transparency and accountability in communications between investment advisers and their potential or actual clients.