Series 63 practice questionhardProfessional Exclusions—Thresholds
A CPA advertises investment portfolio services and charges clients for securities recommendations unrelated to tax advice. Under the USA, the CPA is:
- AExcluded as an accountant
- BAn investment adviser because advice is not incidental✓ Correct answer
- CAn agent of a broker-dealer
- DA federal covered adviser
Explanation
Why B — An investment adviser because advice is not incidental
The professional exclusion only applies to advice incidental to their profession. Actively advertising and charging for specific investment advice makes the CPA an IA (Section 401(c)).
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