Series 63 practice questioneasyRegistration Requirements for IARs
Which of the following must register as an investment adviser representative in a state under the USA?
- AA secretary who only answers phone calls for an adviser
- BAn individual who solicits advisory business and is compensated based on referrals✓ Correct answer
- CAn individual who develops software for an advisory firm but does not interact with clients
- DA custodian who holds client funds but provides no advice
Explanation
Why B — An individual who solicits advisory business and is compensated based on referrals
Soliciting advisory business for compensation is considered acting as an IAR and requires registration. Clerical workers, IT staff, and custodians with no advisory or supervisory duties are excluded (USA Section 401(b)).
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