Series 63 practice questionmediumInvestment Adviser vs. IAR
A sole proprietor provides investment advice to clients and charges a fee. Under the USA, the individual is:
- AAn investment adviser only
- BBoth an investment adviser and an investment adviser representative✓ Correct answer
- COnly an investment adviser if incorporated
- DBoth an agent and an investment adviser
Explanation
Why B — Both an investment adviser and an investment adviser representative
A sole proprietor is both an IA and IAR (Section 401(c)). Incorporation is not required. Agents represent BDs, not advisers.
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