Under the Uniform Securities Act, registration with the Administrator as an investment adviser is required ...

By Investopedia Staff AAA
Q:

Under the Uniform Securities Act, registration with the Administrator as an investment adviser is required in which of the following situations?

I. A broker-dealer that makes investment recommendations to clients.
II. A broker-dealer that charges a fee for securities advice.
III. A financial planner that charges a fee for investment recommendations.
IV. A general circulation investment newsletter.

a) II, III & IV
b) I & III
c) II & III
d) I & II

A:

The correct answer is c.
I is incorrect, since broker-dealers or their agents who don’t receive a fee for making investment recommendations are not required to register, since the advice is considered incidental to their services. IV is incorrect, since investment newsletter publishers only need to register if they give recommendations based on specific client situations. However, broker-dealers and financial planners that provide investment recommendations for a fee do need to register as in investment adviser with the Administrator.


RELATED FAQS

  1. How many people fail the series 63 exam every year?

    How many stock brokers failed the Series 63 exam before they passed successfully? Here is what you need to know before taking ...
  2. The Shur-Gro variable annuity uses an AIR of 3% for those contract holders who are ...

    The correct answer is b. Any time the actual growth rate of the separate account exceeds the account’s AIR, the payment will ...
  3. Sometimes investment banking firms allocate shares of hot issues to the personal ...

    The correct answer is a) Spinning is the act of selling hot issues to the personal accounts of corporate officers which in ...
  4. Donald has been putting aside money for his retirement into a Roth IRA for six years.  Although ...

    The correct answer is A) In a Roth IRA, there is no required distribution date as there is in a traditional IRA.
RELATED TERMS
  1. Series 79

    A examination to ensure a candidate is qualified to become a ...
  2. Research Analyst

    A person who prepares investigative reports on equity securities. ...
  3. Series 34

    An exam required for individuals seeking to engage in off-exchange ...
  4. Financial Advisor

    One who provides financial advice or guidance to customers for ...
  5. Series 23

    An exam offered by the Financial Industry Regulatory Authority ...
  6. Series 28

    An exam given by the Financial Industry Regulatory Authority ...

You May Also Like

Related Articles
  1. Professionals

    Should You Add A Securities License ...

Trading Center