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Question 1:
An investment adviser or its representative may
A. only exercise any discretionary power in the purchase or sale of securities for a client's account
after
receiving written authority prior to the execution of the transactions.
B. exercise discretionary power in the purchase or sale of securities for a client's account as long as it
receives written discretionary authority over the account within 10 business days of the first
discretionary
transaction placed, assuming oral authority has already been given.
C. exercise discretionary power in the purchase or sale of securities for a client's account as long as
D. exercise discretionary power in the purchase or sale of securities for a client's account only after
 
Correct Answer: B
Explanation: An investment adviser or its representative may exercise discretionary power in the
purchase or sale of securities for a client's account as long as it receives written discretionary
authority
over the account within 10 business days of the first transaction placed, assuming oral authority has
already been given.
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