Series 63 practice questionhardCompensation and Investment Adviser Status
A consultant provides investment allocation advice as part of a broader business solutions package and receives a flat fee for all services. Under the USA, which is correct?
- AThe consultant is excluded if investment advice is not the primary service
- BThe consultant is an investment adviser if compensated for securities advice, regardless of other services✓ Correct answer
- CThe consultant is always excluded as a business consultant
- DThe consultant must be a broker-dealer to be an adviser
Explanation
Why B — The consultant is an investment adviser if compensated for securities advice, regardless of other services
If compensation is received for providing securities advice, even as part of a package, the consultant is an IA (Section 401(c)).
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