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

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.


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