Series 63 practice questioneasyDefinition of Investment Adviser — Compensation Element
During a compliance drill, focus on how the Uniform Securities Act applies here. Prioritize the registration trigger and ignore irrelevant noise. According to the Uniform Securities Act, which of the following is a required element for a person to be considered an investment adviser?
- AThey must manage at least $100 million in assets
- BThey must be registered with the SEC
- CThey must be a licensed broker-dealer
- DThey must receive compensation for their advice✓ Correct answer
Explanation
Why D — They must receive compensation for their advice
The USA requires that, to be considered an investment adviser, a person must provide advice regarding securities for compensation (USA Section 401(c)). The extra setup is just noise; the controlling state-law rule stays the same.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 646+ Series 63 questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Related Regulation of Investment Advisers questions
- On a timed state-securities quiz, the scenario below appears. Prioritize the registration trigger and ignore irrelevant…
- For a mock NASAA exam, assume the administrator is testing this exact point. Prioritize the registration trigger and…
- A training manager asks you to analyze the following USA issue. Prioritize the registration trigger and ignore…
- In a state-law practice set, a candidate reviews the following scenario. Prioritize the registration trigger and ignore…