Series 63 practice questioneasyInvestment Adviser Representatives — Definition
In a state-law practice set, a candidate reviews the following scenario. Read it as a Uniform Securities Act issue rather than a federal-law issue. Under the Uniform Securities Act, which of the following individuals is considered an Investment Adviser Representative (IAR)?
- AA person who acts as a custodian for client assets, but does not provide advice
- BAn individual who solicits, offers, or negotiates for the sale of investment advisory services on behalf of an investment adviser✓ Correct answer
- CA person who is only engaged in executing trades for a broker-dealer
- DA person who solely clerical or ministerial tasks for an investment adviser
Explanation
Why B — An individual who solicits, offers, or negotiates for the sale of investment advisory services on behalf of an investment adviser
Under the USA, an IAR includes anyone who gives advice, solicits clients, or manages accounts on behalf of an investment adviser. Clerical staff and those only executing trades or acting as custodians are not considered IARs (USA Section 401(17)). 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
- For a mock NASAA exam, assume the administrator is testing this exact point. Read it as a Uniform Securities Act issue…
- In a state-administrator case study, the scenario starts here. Assume the administrator is testing the cleanest…
- During a compliance drill, focus on how the Uniform Securities Act applies here. Read it as a Uniform Securities Act…
- For a licensing checkpoint quiz, treat the following as the opening fact pattern. Assume the administrator is testing…