Series 63 practice questionhardPublisher Exclusion – Mixed Content
A publisher sends a weekly newsletter with general market commentary but offers a premium service with tailored investment recommendations. Under the USA, the publisher must:
- ARegister as an investment adviser unless another exemption applies.✓ Correct answer
- BRegister only if more than five subscribers are in-state.
- CRegister only for the premium service.
- DRegister as a broker-dealer.
Explanation
Why A — Register as an investment adviser unless another exemption applies.
Providing tailored advice removes the publisher exclusion. Registration as an IA is required for the premium service, and the firm as a whole may need to register (Section 401(c)). The number of subscribers does not affect this.
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