Series 63 practice questionmediumBank Exclusion Limits
A wholly owned subsidiary of a bank provides investment advice about securities for a fee. Under the USA, the subsidiary is:
- AExcluded as a bank
- BNot excluded and may be required to register as an investment adviser✓ Correct answer
- CAutomatically a broker-dealer
- DAn investment adviser representative
Explanation
Why B — Not excluded and may be required to register as an investment adviser
The bank exclusion (401(c)) does not extend to subsidiaries; only the bank entity itself is excluded.
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