SIE Exam Question 707: Answer and Explanation

Question: 707

All but which of the following are correct regarding the IARD?

• A. It was developed according to the requirements of its sponsors, the SEC and NASAA.
• B. Its database helps promote uniformity through the use of common forms, and efficiency through a paperless environment.
• C. It is to investment advisers what the CRD is to broker-dealers.
• D. All of the above are correct.

Correct Answer: D

Explanation:

The IARD was developed according to the requirements of its sponsors, the SEC and NASAA. Its database helps promote uniformity through the use of common forms, and efficiency through a paperless environment. It is to investment advisers what the CRD is to broker-dealers.