Series 63 practice questionhardBank Holding Company Exclusion
A bank holding company wholly owns an investment advisory subsidiary that gives advice for a fee. Under the USA, the subsidiary is:
- AExcluded as a bank
- BRequired to register as an investment adviser✓ Correct answer
- CConsidered an agent
- DA federal covered adviser automatically
Explanation
Why B — Required to register as an investment adviser
The bank exclusion applies to banks, not their affiliates or subsidiaries. The advisory subsidiary must register (Section 401(c)).
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