Series 63 practice questioneasyDefinition of IAR – Soliciting Clients
Lisa, an employee of a state-registered investment adviser, is paid based on the number of clients she refers to the adviser but does not provide advice. Under the USA, Lisa is:
- ARequired to register as an IAR✓ Correct answer
- BExcluded from registration as an IAR
- CRequired to register only if she provides advice
- DNot required to register if she is supervised
Explanation
Why A — Required to register as an IAR
Solicitation for compensation qualifies an individual as an IAR under the USA, even if no advice is given. Exclusion is only for clerical and administrative roles (USA Section 401(b)).
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