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