Series 63 practice questionmediumIA Exemptions and Exclusions — Publishers Exclusion
A financial newsletter publisher in State X offers general investment advice to subscribers in several states, but does not tailor advice to individual clients. Under the USA, which of the following best describes the publisher's status?
- AThe publisher is exempt from registration as long as the advice is impersonal and regularly circulated.✓ Correct answer
- BThe publisher must register only in its home state.
- CThe publisher is an investment adviser but may qualify for an institutional exemption.
- DThe publisher must register as an investment adviser in every state with subscribers.
Explanation
Why A — The publisher is exempt from registration as long as the advice is impersonal and regularly circulated.
The USA excludes from the definition of investment adviser any publisher of a bona fide newspaper, magazine, or business/financial publication of general and regular circulation that does not provide tailored advice (USA Section 401(c)).
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