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← Series 63: Regulation of Investment Advisers
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?

  1. ANo, because of the LATE exclusion.✓ Correct answer
  2. BYes, because investment advice was provided.
  3. CNo, if the client is an institution.
  4. 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.

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