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Series 63: Regulation of Investment Advisers
Series 63 practice questioneasyDefinition of Investment Adviser – Bank and Professional Exclusions

Under the Uniform Securities Act (USA), which of the following entities is generally EXCLUDED from the definition of an investment adviser?

  1. AA bank that provides investment advice as part of its normal banking operations.✓ Correct answer
  2. BA corporation providing investment advice to the public for a fee.
  3. CA partnership that manages portfolios for compensation.
  4. DA person who publishes investment newsletters with personalized advice.
Explanation

Why AA bank that provides investment advice as part of its normal banking operations.

Banks are specifically excluded from the definition of investment adviser under the USA (Section 401(c)). The other options describe entities or persons who are generally considered investment advisers.

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