Series 63 practice questioneasyInvestment Adviser Representatives — Definition
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)).
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