A registered agent at a broker-dealer provides tailored investment advice to clients and receives both commissions on trades and a separate annual fee for the advice. Which of the following BEST describes this agent's status under the USA?

1. AAgent, not an investment adviser, because agents are always excluded.
2. BInvestment adviser, because they receive a separate fee for advice beyond commissions.✓ Correct answer
3. CAgent and investment adviser, but only if the firm is not registered as a broker-dealer.
4. DNeither agent nor investment adviser, as the advice is solely related to trades.

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.

• Which of the following scenarios would NOT qualify for the 'incidental advice' exclusion from the investment adviser…
• An individual publishes a weekly investment newsletter for a flat annual fee, but never makes individualized…
• A wholly-owned affiliate of a national bank sets up a separate subsidiary to offer investment advice for a fee. The…
• All of the following are excluded from the definition of 'investment adviser' under the Uniform Securities Act EXCEPT:
• Which statement BEST describes the distinction between an agent of a broker-dealer and an investment adviser under the…
• Which of the following would MOST LIKELY cause an individual offering investment advice to meet the compensation prong…
• A publisher begins to include personalized buy/sell recommendations for individual newsletter clients, but still…
• Which of the following is TRUE about the annual audited balance sheet delivery requirement under the USA?