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Finra Series-63 Exam - Topic 3 Question 12 Discussion

Which of the following does not necessarily have to be included in the contract between an investment adviser and an individual client, according to the Uniform Securities Act (USA)?
D) if there is any change in the partners within a reasonable time perioda statement of the investment policy that has been agreed upon between the adviser and the client
A) the compensation agreement, which cannot be a percentage of the capital gains or capital appreciation earned on the portfolio for all but the wealthiest of individual clients.
B) a statement stipulating that the contract cannot be assigned to another party without the client's consent
C) if the investment adviser is a partnership, a statement indicating that the client will be notified

Finra Series-63 Exam - Topic 3 Question 12 Discussion

Actual exam question for Finra's Series-63 exam
Question #: 12
Topic #: 3
[All Series-63 Questions]

Which of the following does not necessarily have to be included in the contract between an investment adviser and an individual client, according to the Uniform Securities Act (USA)?

Show Suggested Answer Hide Answer
Suggested Answer: D

A statement of the investment policy does not have to be included in the contract between an investment adviser and an individual client. The statement of investment policy is generally developed after the contract is signed.


by Kathrine at Jul 09, 2025, 09:14 PM

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Shaniqua
8 months ago
I thought all those details were mandatory.
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Eden
9 months ago
Wait, can they really not include the investment policy?
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Ciara
9 months ago
Totally agree, that's a key part!
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Stephanie
9 months ago
B seems like a must-have to me!
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Katina
9 months ago
A contract must include the compensation agreement.
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Gennie
9 months ago
The investment policy statement seems crucial, but I’m uncertain if it’s legally required to be in the contract. I think I saw a question about this in our review materials.
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Tyisha
10 months ago
I vaguely remember that if the adviser is a partnership, there are specific notifications required. I’m not entirely clear on whether that’s a must-have in the contract though.
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Marge
10 months ago
I feel like the assignment clause is pretty standard in contracts, but I can't recall if it’s mandatory under the USA. It seems like a similar question came up in practice exams.
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Jettie
10 months ago
I think the compensation agreement is important, but I’m not sure if it has to be included for all clients. I remember something about it being different for wealthier clients.
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Jospeh
10 months ago
This is a tricky one. I'm not as familiar with the specific details of the Uniform Securities Act as I'd like to be. I'll have to carefully read through the options and see if I can spot the one that doesn't have to be included.
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Shaniqua
10 months ago
I've got a good feeling about this one. The Uniform Securities Act lays out the core requirements for these types of contracts, so I should be able to identify the element that isn't mandatory.
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Fletcher
11 months ago
Okay, let me think this through. The options cover things like compensation, assignment, and partnership changes. I'll need to review my notes on the Uniform Securities Act to determine which of these is not necessarily required.
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Lavera
11 months ago
Hmm, I'm a little unsure about this one. The question is asking what doesn't have to be included, so I need to think carefully about the different contract elements mentioned and which one might not be required.
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Quentin
11 months ago
This one seems pretty straightforward. I think the key is to focus on the specific requirements of the Uniform Securities Act and what it mandates for investment adviser-client contracts.
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Leeann
1 year ago
I'm going with C. The partnership statement doesn't seem mandatory according to the question.
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Sue
1 year ago
I see your point, maybe I was mistaken. A does make more sense.
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Desire
1 year ago
I agree with Chanel, A seems like the correct answer.
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Chanel
1 year ago
But A makes sense because compensation should not be tied to capital gains.
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Tamar
1 year ago
A is the way to go. The compensation agreement can't be based on capital gains or appreciation for most clients.
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Paz
11 months ago
User 3: I think B is also crucial for client protection.
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Colton
12 months ago
User 2: Definitely, it ensures fair compensation.
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Katy
12 months ago
User 1: I agree, A is important to protect clients.
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Sue
1 year ago
I disagree, I believe the answer is B.
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Temeka
1 year ago
Haha, imagine if the contract had to include a notification every time the investment adviser's partners changed. Talk about micromanaging!
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James
11 months ago
B) a statement stipulating that the contract cannot be assigned to another party without the client's consent
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Ming
1 year ago
A) the compensation agreement, which cannot be a percentage of the capital gains or capital appreciation earned on the portfolio for all but the wealthiest of individual clients.
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Chanel
1 year ago
I think the answer is A.
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Lyndia
1 year ago
D seems like the odd one out here. The investment policy statement should definitely be included in the contract.
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Aileen
1 year ago
I think D is the odd one out too. The investment policy should definitely be included in the contract for transparency.
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Aileen
1 year ago
I agree, D does seem out of place. The investment policy statement is crucial for both parties to understand expectations.
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Deeann
1 year ago
Hmm, I think the answer is B. The contract doesn't necessarily have to include a statement about consent for assignment to another party.
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Tayna
1 year ago
I agree, the contract doesn't have to include a statement about assignment consent.
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Donette
1 year ago
I think you're right, B seems like the correct answer.
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Sophia
1 year ago
User 3: I think the answer is C. The contract should include a statement if the adviser is a partnership.
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Latanya
1 year ago
User 2: I agree with you, Latanya. It doesn't have to be a percentage for all clients.
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Laquanda
1 year ago
User 1: I think the answer is A. The compensation agreement doesn't have to be a percentage of capital gains.
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