Investment Adviser Correct Answer: Person or entity that is in the business of providing investment advice about securities
Fiduciary Correct Answer: an investment adviser owes its clients undivided loyalty and may
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Investment Adviser Correct Answer: Person or entity that is in the business of providing investment advice about securities
Fiduciary Correct Answer: an investment adviser owes its clients undivided loyalty and may not engage in activity that conflicts with a client's interest without the client's consent
Who is required to register with the SEC? Correct Answer: 1) an investment advisor under Section 202(a)(11) of the Advisors Act 2) Not excepted from the IA definition 3) Not exempt from Commission registration & 4) not prohibited from Commission registration
What are the 3 elements of the IA definition must be satisfied to be covered under the Act? Correct Answer: The person or firm must be (1) for compensation (2) engaged in the business (3) of providing advice to others or issuing reports or analyses regarding securities
Who is excluded from registration requirements? Correct Answer: Domestic Banks
Lawyers, accounts, anyone whose advisory services is solely incidental to their profession
Broker and dealers if they do not receive any special compensation
Publishers of bonafide newspapers, news magazines, and business publications
Persons and firms whose advice/reports are related only to direct obligations of the US
Family offices
Who is prohibited from SEC registration? Correct Answer: Intrastate Advisors
Advisers to only insurance companies
Private fund advisors, foreign private advisors, and venture capital fund advisers
Charitable organizations and employees
Church plans
Commodity Trading advisors
Family Offices
Intrastate advisor Correct Answer: An advisor whose clients are within the same state as the adviser's principal business office AND that does not provide advice or issue reports about securities listed on any national exch
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