Series 63 practice questionhardPublisher Exclusion—Compensation
A financial publisher sends weekly stock picks to subscribers for a fee and frequently updates advice based on market activity. Which is TRUE under the USA?
- AThe publisher is always excluded as a bona fide publisher
- BThe publisher is NOT excluded because the advice is tailored and frequently updated✓ Correct answer
- CThe publisher is a federal covered adviser
- DThe publisher is excluded if subscribers are anonymous
Explanation
Why B — The publisher is NOT excluded because the advice is tailored and frequently updated
The publisher exclusion does not apply when advice is frequent and responsive to market activity, making it effectively tailored (Section 401(c)).
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