Series 63 practice questionhardIAR Definition – Solicitor for Unaffiliated Adviser
Under the USA, which of the following individuals soliciting clients for an unaffiliated investment adviser must register as an IAR?
- AAn attorney who receives a flat, one-time fee for referring a friend
- BA consultant who receives ongoing compensation for regularly soliciting clients on the adviser's behalf✓ Correct answer
- CA media personality who recommends an adviser without compensation
- DA clerical worker who answers inquiries but provides no recommendations
Explanation
Why B — A consultant who receives ongoing compensation for regularly soliciting clients on the adviser's behalf
Ongoing, compensated solicitation is IAR activity. A one-off, uncompensated, or clerical referral does not require registration (USA Section 401(b); NASAA guidance).
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