Series 63 practice questioneasyEdge Case—Publishing
An individual publishes a weekly investment newsletter for a flat annual fee, but never makes individualized recommendations. Under the Uniform Securities Act, the publisher is:
- AAn investment adviser because they charge a fee.
- BNot an investment adviser because the advice is impersonal and generally available.✓ Correct answer
- CAn investment adviser because publishing always qualifies if a fee is charged.
- DNot an investment adviser because newsletters are excluded regardless of content.
Explanation
Why B — Not an investment adviser because the advice is impersonal and generally available.
Impersonal advice through bona fide publications of general circulation is excluded from the definition (USA §401(c)). Options A and C are incorrect as compensation alone does not determine adviser status if the advice is not personalized; D is overbroad.
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