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← Series 63: Regulation of Investment Advisers
Series 63 practice questioneasyExcluded Persons

All of the following are excluded from the definition of 'investment adviser' under the Uniform Securities Act EXCEPT:

  1. AA bank that provides investment advice solely as part of its custodial services.
  2. BA teacher who provides investment advice for a fee during evening classes.✓ Correct answer
  3. CAn engineer providing incidental investment advice as part of engineering services.
  4. DA lawyer who charges clients for legal services but also incidentally offers investment recommendations.
Explanation

Why B — A teacher who provides investment advice for a fee during evening classes.

Teachers are only excluded if their advice is purely incidental and not for compensation (USA §401(c)). Here, the teacher charges a fee for advice, so Option B is not excluded. Banks, engineers, and lawyers are excluded if advice is incidental to their business and no special compensation is received.

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