Series 63 practice questioneasyThree-Prong Test
Which of the following is NOT one of the three prongs used to determine investment adviser status under the USA?
- AProviding advice about securities
- BReceiving compensation for advice
- CBeing registered with the SEC✓ Correct answer
- DBeing in the business of giving such advice
Explanation
Why C — Being registered with the SEC
Being registered with the SEC is not a prong of the investment adviser definition. The three prongs are advice about securities, in the business, and compensation (Section 401(c)).
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