This sub-section discusses the exclusions from registration for investment adviser representatives. These exclusions are specific situations where an individual does not need to register as an investment adviser representative, even if they provide investment advice.
Which of the following individuals is most likely excluded from registering as an investment adviser representative?
Not Correct
Correct!
Select an option above to see an explanation here.
A) A broker-dealer may be required to register as an investment adviser representative if they provide investment advice for their securities transactions. B) A financial planner who provides investment advice as a primary service is likely required to register as an investment adviser representative. C) An insurance agent who provides investment advice as part of their insurance sales process is likely excluded from registration because their primary business is selling insurance, and the investment advice is incidental to their insurance business. D) A bank trust officer who manages trust accounts may be required to register as an investment adviser representative if they provide investment advice as part of their trust management duties.
What type of investment advice is most likely to be excluded from registration requirements for investment adviser representatives?
A) Personalized investment advice is typically subject to registration requirements for investment adviser representatives. B) Impersonal investment advice, which does not consider the client's specific needs and objectives, is most likely to be excluded from registration requirements. C) Investment advice a solicitor provides may be subject to registration requirements if they are compensated for the referral. D) Investment advice a broker-dealer provides may be subject to registration requirements if it is part of their securities transactions.
In the past, there was a case where an insurance agent provided investment advice to clients as part of their insurance sales process. The agent was not required to register as an investment adviser representative because their primary business was selling insurance, and the investment advice was incidental to their insurance business.
Which of the following professionals is most likely excluded from registering as an investment adviser representative if they provide investment advice as part of their primary business?
A) A financial planner who provides investment advice as part of their primary business is likely required to register as an investment adviser representative. B) An insurance agent who provides investment advice as part of their primary business is most likely excluded from registration because their primary business sells insurance, and the investment advice is incidental to their insurance business. C) A broker-dealer who provides investment advice as part of their primary business may be required to register as an investment adviser representative. D) A bank trust officer who provides investment advice as part of their primary business may be required to register as an investment adviser representative.
A lawyer who provides startup legal services and incidental advice about investing in startups may not need to register as an investment adviser representative if investment advice is only a small part of their overall services.
Become a Pro Member to see more questions
Example Series 65 Example Practice Question
- Exclusions from registration example: A lawyer, accountant, or teacher whose advice is solely incidental to their profession and who does not receive special compensation for providing investment advice would be excluded from registration.