Q:

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.

A:
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.

RELATED FAQS

  1. Is it permissible for an investment advisor representative employed by an SEC registered ...

    <p>&nbsp;</p> <p>&nbsp;</p> <p>&nbsp;</p> ...
  2. How do I become a financial advisor?

    <p>Hi there, I am a senior accounting major at university. After college I would like to receive my CPA and CFA and work ...
  3. Are hedge funds registered with the Securities and Exchange Commission (SEC)?

    Learn the conditions that require hedge fund advisors to register with the U.S. Securities and Exchange Commission.
  4. What's the difference between a financial advisor and a financial planner?

    Seeking professional advice from a financial advisor may involve asking for financial help from a certified financial planner, ...
  5. What's the average salary of a financial advisor?

    Learn about average salaries for financial advisors. Explore different levels of compensation financial advisors receive ...
  6. What fees do financial advisors charge?

    Learn how much financial advisors charge clients; discover the various payment plans available to customers seeking financial ...
RELATED TERMS
  1. SEC Release IA-1092

    A release from the Securities & Exchange Commission (SEC) that ...
  2. Investment Advisor

    As defined by the Investment Advisors Act of 1940, any person ...
  3. Financial Planner

    A qualified investment professional who helps individuals and ...
  4. Registered Investment Advisor - RIA

    An advisor or firm engaged in the investment advisory business ...
  5. Federal Covered Advisor

    An investment advisor in the United States that manages more ...
  6. Financial Advisor

    One who provides financial advice or guidance to customers for ...
Hot Definitions
  1. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  2. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  3. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  4. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  5. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
  6. Omnibus Account

    An account between two futures merchants (brokers). It involves the transaction of individual accounts which are combined ...
Trading Center