Lucky the Banker mascotLTB
Series 63: Regulation of Investment Advisers
Series 63 practice questionmediumIncidental Advice by Professionals

Which of the following scenarios would NOT qualify for the 'incidental advice' exclusion from the investment adviser definition under the Uniform Securities Act?

  1. AA CPA who charges only for tax preparation, but occasionally suggests investment options.
  2. BAn engineer providing engineering services, who charges a fee for a detailed investment strategy session.✓ Correct answer
  3. CA lawyer who includes general investment recommendations as part of an estate plan, and charges exclusively for the legal work.
  4. DA teacher who does not charge for investment advice provided during classroom instruction.
Explanation

Why BAn engineer providing engineering services, who charges a fee for a detailed investment strategy session.

Option B fails the 'incidental' test because investment advice is being offered separately and for a specific fee (USA §401(c)). Other options provide advice only incidentally and do not charge separately for it.

Turn it into reps

Reading one answer is not the same as being ready

Lucky the Banker is a free practice app with 1,051+ Series 63 questions, weak-area tracking, and timed mock exams. No credit card, no paywall.

Spot an error in this question or explanation? Tell us — we fix these fast.

Related Regulation of Investment Advisers questions