Question of the Week

According to SEC Release IA-1092, which of the following would NOT qualify as an investment advisor?

A) A sports representative who manages Derek Jeter's financial dealings.
B) A financial planner who illustrates the correct asset balance for an investment portfolio.
C) A CPA who advises his client on tax law as it regards estate planning strategies.
D) A pension consultant managing $25 million.


The correct answer is C).

SEC Release IA-1092 considers financial planners, pension consultants and sports and entertainment representatives as investment advisors. A CPA who provides advice that is solely incidental to the practice of his profession is exempt from the definition.