Series 63 practice questionmediumDefinition of IAR – Providing Advice
Which of the following best describes an investment adviser representative as defined by the USA?
- AAn individual who manages client accounts and makes buy/sell recommendations for securities✓ Correct answer
- BA firm that issues research reports for a fee
- CA custodian who holds client funds and records
- DA person engaged exclusively in marketing investment seminars with no client contact
Explanation
Why A — An individual who manages client accounts and makes buy/sell recommendations for securities
Managing client accounts and making recommendations constitutes acting as an IAR. Firms are investment advisers, not IARs. Custodians and marketers with no direct advice or solicitation are excluded (USA Section 401(b)).
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