Series 63 practice questionmediumInvestment Adviser Representative Status
Sarah, a CPA in State Y, charges clients for financial plans that include recommendations to purchase specific mutual funds. She is not affiliated with a broker-dealer or advisory firm. Under the USA, Sarah is:
- AExcluded because she is a CPA
- BAn investment adviser because she provides investment advice for compensation✓ Correct answer
- CA broker-dealer
- DRequired to register as an agent
Explanation
Why B — An investment adviser because she provides investment advice for compensation
CPAs are only excluded if advice is incidental. Sarah’s specific recommendations for a fee meet the IA definition (401(c)). She is not a BD or agent in this context.
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