Q:
Under the Uniform Securities Act, which of the following advisers is NOT defined as a federal covered adviser:
a) One who advises only mutual funds (investment companies)
b) One who advises only insurance companies
c) One who gives advice only about US Government securities
d) One who manages over $25,000,000 in client assets
A:

The correct answer is b).
Federal covered advisers include those who manage client assets of $25,000,000 or more or who advises only mutual funds. A federal covered adviser is also one who is excluded from the definition of an investment adviser under the Investment Advisers Act of 1940 (including those who give advice solely on US Government securities. However, those who advise only insurance companies are not defined as federal covered advisers, since insurance companies are only regulated at the state level, not federal.


RELATED FAQS

  1. Under the Uniform Securities Act, the registration of an investment adviser results ...

    The correct answer is b. Clerical employees do not need to be registered as investment adviser representatives, while solicitors, ...
  2. What is the difference between fee-only advisors and fee-based advisors?

    Better manage your retirement account by understanding the important differences between fee-only and fee-based financial ...
  3. Under the Uniform Securities Act, registration requirements for an investment adviser ...

    The correct answer is a) Investment advisor representatives do not need to include a minimum amount of net capital since ...
  4. Why are fee-based accounts preferred by many high net worth individuals (HNWI)?

    Learn why many high-net-worth individuals prefer fee-based financial advisers, and learn how commission based advisers may ...
RELATED TERMS
  1. Agency Cross

    A transaction in which an investment adviser acts as the broker ...
  2. Investment Adviser Registration Depository - IARD

    An electronic system through which investment advisers register ...
  3. SEC Form ADV-E

    A certification of client assets, both cash and securities that ...
  4. SEC Form ADV

    The application for registration as an investment adviser or ...
  5. Investment Advisers Act of 1940

    A piece of legislation passed in 1940 that, among other things, ...
  6. SEC Form ADV-W

    The form used to withdraw registration as a Registered Investment ...
Hot Definitions
  1. Graduate Management Admission Test - GMAT

    A standardized test intended to measure a test taker's aptitude in mathematics and the English language. The GMAT is most ...
  2. Magna Cum Laude

    An academic level of distinction used by educational institutions to signify an academic degree which was received "with ...
  3. Cover Letter

    A written document submitted with a job application explaining the applicant's credentials and interest in the open position. ...
  4. 403(b) Plan

    A retirement plan for certain employees of public schools, tax-exempt organizations and certain ministers. Generally, retirement ...
  5. Master Of Business Administration - MBA

    A graduate degree achieved at a university or college that provides theoretical and practical training to help graduates ...
  6. Liquidity Event

    An event that allows initial investors in a company to cash out some or all of their ownership shares and is considered an ...
Trading Center