Series 63 practice questioneasyIA Exemptions and Exclusions — Exclusion for Banks
In a state-law practice set, a candidate reviews the following scenario. The key is the registration, exemption, or ethical rule doing the real work. Under the Uniform Securities Act, which of the following is NOT considered an investment adviser and therefore is excluded from the definition of investment adviser?
- AA partnership that manages investment portfolios for clients
- BA person who gives advice about securities for compensation
- CA financial planner who charges a fee for securities advice
- DA bank or bank holding company✓ Correct answer
Explanation
Why D — A bank or bank holding company
Under the USA, banks and bank holding companies are specifically excluded from the definition of investment adviser (Section 401(c)). This variant keeps the same legal rule but shifts the setup so recall has to stay flexible.
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