Series 63 practice questionmediumExclusion for Broker-Dealers – Dual Registration
Which of the following broker-dealer activities would require registration as an investment adviser under the USA?
- ACharging a fee for a stand-alone financial plan.✓ Correct answer
- BReceiving commissions on securities transactions only.
- COffering research reports to clients as part of trade execution.
- DProviding general investment ideas to all clients as part of regular service.
Explanation
Why A — Charging a fee for a stand-alone financial plan.
Charging a separate fee for investment advice (such as a financial plan) constitutes special compensation, requiring IA registration (Section 401(c)). The other activities fall within normal broker-dealer services.
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