Under the Uniform Securities Act, which of the following advisers is NOT defined as a federal covered ...

By Investopedia Staff AAA
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. If an investor has a required rate of return of 10% on a 20-year zero ...

    The correct answer is d. The value of a zero coupon bond is the present value of the lump-sum principal payment. There is ...
  2. XYZ Corp. has an asset turnover ratio of 0.75. Because the economy is currently ...

    The correct answer is: b) Return on Assets = NI/Sales = Sales/Assets x NI/Sales
  3. At the beginning of the year, ABC Corp. began to lease a major piece of equipment ...

    The correct answer is: A) Under the capitalized lease method, the lessee must treat the asset as if it was purchased with ...
  4. Which of the following statements is (are) true with respect to the factors that ...

    The correct answer is: d) (I) is incorrect because if interest rates are expected to rise, banks will generally "increase" ...
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. Insurance

    Municipal Bond Tips For The Series 7 ...

  2. Retirement

    6 Proven Tips For Series 6 Success

  3. Insurance

    Tips For Passing The Series 6 Exam

  4. Professionals

    Banker Or Broker: Which Career Is Right ...

  5. Professionals

    Breaking Down Financial Securities Licenses

Trading Center