Question

Under the Uniform Securities Act, all of the following must be disclosed in an investment advisory contract EXCEPT A) other states in which the adviser is registered B) a provision prohibiting the adviser from being compensated based on a share of capital gains C) the manner in which the advisory fee will be computed D) a provision prohibiting the adviser from assigning the contract without client consent

Answer 1

Answer: A) other states in which the adviser is registered

Explanation:

The Uniform Securities Act was put in place in order to deal with fraud involving securities at state level and to also help the Securities and Exchange Commission in the regulation and enforcement.

Based on the options provided in the question, under the Uniform Securities Act, all of the following must be disclosed in an investment advisory contract except other states in which the adviser is registered.