Series 63 practice questionmediumRegistration Requirements for IAs — Exclusions from Definition
Which of the following persons would NOT be required to register as an investment adviser under the Uniform Securities Act?
- AA CPA who regularly gives investment advice for a separate fee.
- BA publication that gives tailored advice to subscribers for a fee.
- CA broker-dealer offering advice as part of its brokerage services and not charging separately for it.✓ Correct answer
- DA financial planner who charges a separate fee for investment advice.
Explanation
Why C — A broker-dealer offering advice as part of its brokerage services and not charging separately for it.
Under the USA, broker-dealers whose performance of advisory services is solely incidental to their business and who receive no special compensation are excluded from the definition of investment adviser and thus not required to register. (USA § 401(c))
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