Brochure Rule

B is correct. Because the brochure was delivered at the time of contract signing rather than at least 48 hours in advance, Robert has 5 business days to cancel the contract without penalty under the Brochure Rule.

A is incorrect because the withdrawal period is 5 business days, not 48 hours. The 48-hour rule refers to advance delivery to avoid the cancellation period altogether. C is incorrect because receiving the brochure at signing (rather than 48 hours before) triggers the 5-day cancellation right. D is incorrect because delivering the brochure at signing is permitted, but it triggers the mandatory 5-day penalty-free cancellation period.

B is correct. The Brochure Rule requires investment advisers to deliver Form ADV Part 2A at least 48 hours before entering into an advisory contract to avoid triggering the 5-day penalty-free cancellation period.

A (24 hours) is insufficient; the rule specifically requires 48 hours. C (5 business days) is the length of the cancellation period when the brochure is NOT delivered 48 hours in advance, not the advance delivery requirement. D (7 calendar days) is not a regulatory threshold under the Brochure Rule.

B is correct. The 48-hour requirement means at least 48 hours must pass between delivery and contract signing. Monday 3:00 PM + 48 hours = Wednesday 3:00 PM (or later).

A (Tuesday at 3:00 PM) is only 24 hours after delivery, which is insufficient. C (Thursday at 3:00 PM) and D (Friday at 3:00 PM) are both compliant but not the earliest possible signing time. The question asks for the earliest day to sign without triggering the cancellation period, which is Wednesday at 3:00 PM or any time after.

C is correct (the EXCEPT answer). The advance delivery requirement is 48 hours, not 5 business days. This is a common confusion point between the advance delivery timeframe (48 hours) and the cancellation period (5 business days).

A is accurate: Advisers must deliver the brochure either at least 48 hours before signing or at the time of signing (which triggers the 5-day right). B is accurate: Existing clients must receive annual updates, either the full brochure or a summary of material changes. D is accurate: When the brochure is delivered at or after signing (rather than 48 hours before), clients receive a 5-day penalty-free withdrawal right.

A is correct. Only statements 2 and 4 are accurate.

Statement 1 is FALSE: The cancellation period is 5 business days, not 7 calendar days. "Until the following Tuesday" suggests 7 calendar days (Tuesday to Tuesday), which is incorrect.

Statement 2 is TRUE: Once a client relationship is established, the adviser must provide annual updates (full brochure or summary of material changes) to existing clients.

Statement 3 is FALSE: Delivering the brochure at signing is not a violation. The adviser has two compliant options: (1) deliver 48 hours early with no cancellation right, or (2) deliver at signing and grant a 5-day cancellation right. Both are permitted.

Statement 4 is TRUE: When the brochure is delivered at contract signing (rather than 48 hours before), the client receives a mandatory 5 business day penalty-free cancellation right.