Series 63 practice questionhardIAR Definition – Providing Reports
Which of the following individuals is classified as an IAR under the USA?
- AA research analyst who writes reports for in-house use by advisers, with no client contact
- BA person who receives compensation for determining which advisory clients receive certain investment recommendations✓ Correct answer
- CA clerical staff member who maintains client records
- DA compliance officer with no supervisory or client responsibilities
Explanation
Why B — A person who receives compensation for determining which advisory clients receive certain investment recommendations
Receiving compensation for determining client-specific recommendations is advisory activity and meets the IAR definition. Solely internal research, clerical duties, and compliance without advice or supervision are excluded (USA Section 401(b)).
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