SERIES-63 practice question 27 of 35

Investment Adviser Foo Lish, LLC has begun serving as a custodian of its clients’ assets. Foo Lish, LLC must now I . file a new U-5 form with the Administrator. II . meet higher net capital requirements than before. III . file an updated Form ADV with the Administrator. IV . pay a CPA to do an annual unannounced audit of the firm.

Full set: 251 questions

Answer options

A: I, II, III, and IV

B: II, III, and IV only Correct answer

C: II and III only

D: I and II only

Correct Answer:

B. II, III, and IV only

Explanation

Selections II, III, and IV are correct. When Foo Lish begins serving as a custodian of its clients’ assets, it must file an updated Form ADV with the Administrator, meet higher net capital requirements than before, and pay a CPA to do an annual unannounced audit of the firm. The U-5 form is filed when a representative leaves the firm.

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