Series 63 practice questioneasyLawyer, Accountant, Teacher, Engineer (LATE) Exclusion
A CPA provides incidental investment advice while preparing a client’s tax return. Is the CPA required to register as an investment adviser?
- ANo, because of the LATE exclusion.✓ Correct answer
- BYes, because investment advice was provided.
- CNo, if the client is an institution.
- DYes, unless the CPA does not charge a fee.
Explanation
Why A — No, because of the LATE exclusion.
Lawyers, Accountants, Teachers, and Engineers (LATE) are excluded from the IA definition when advice is incidental to their professional practice (Section 401(c)). Charging a fee or the client’s status does not change this exclusion.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 1,051+ Series 63 questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Spot an error in this question or explanation? Tell us — we fix these fast.
Related Regulation of Investment Advisers questions
- Which characteristic makes an investment adviser eligible for the INTRASTATE adviser exemption under the USA?
- According to the USA, which of the following publications would be EXCLUDED from the definition of an investment…
- Under the USA, which of the following is NOT considered an investment adviser?
- Which of the following clients would most likely make an investment adviser exempt from registration under state law?
- Federal covered advisers must register with the SEC. Under the USA, which of the following statements is TRUE regarding…
- Under the Uniform Securities Act (USA), which of the following entities is generally EXCLUDED from the definition of an…
- An adviser whose only clients are insurance companies is:
- Which of the following individuals is NOT considered an IAR under the USA?