Series 63 practice questioneasyExclusions – Broker-Dealers
Under the USA, which of the following is NOT considered an investment adviser?
- AA broker-dealer providing advice as part of its brokerage services and not receiving special compensation.✓ Correct answer
- BA financial planner charging a separate fee for advice.
- CA bank subsidiary selling investment products.
- DA teacher offering paid investment seminars.
Explanation
Why A — A broker-dealer providing advice as part of its brokerage services and not receiving special compensation.
Broker-dealers not receiving special compensation for advice are excluded from the definition of investment adviser (Section 401(c)). Charging separate fees or offering seminars generally does not qualify for the exclusion.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 1,051+ Series 63 questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Spot an error in this question or explanation? Tell us — we fix these fast.
Related Regulation of Investment Advisers questions
- Federal covered advisers must register with the SEC. Under the USA, which of the following statements is TRUE regarding…
- Which characteristic makes an investment adviser eligible for the INTRASTATE adviser exemption under the USA?
- An adviser whose only clients are insurance companies is:
- A CPA provides incidental investment advice while preparing a client’s tax return. Is the CPA required to register as…
- A broker-dealer in State Y charges an annual wrap fee for providing investment advice and trade execution to retail…
- According to the USA, which of the following publications would be EXCLUDED from the definition of an investment…
- Which of the following scenarios would NOT qualify for the LATE exclusion under the USA?
- Which of the following clients would most likely make an investment adviser exempt from registration under state law?