Free Preparation Discussions
MENU
Finra Exam Series-6 Topic 5 Question 100 Discussion
Topic #: 5
Which of the following would not have to register as an investment adviser or an investment adviser representative under the Investment Advisers Act of 1940?
i. an insurance agent who sells only whole life and term life policies
ii. a commodity futures broker
iii. a bank employee who sells the bank's customers only CDs and other bank securities that are FDIC-insured
IV. a person that is registered as a broker-dealer with the SEC that also provides investment advice to its customers for additional compensation
Only the persons described in Selections I, II, and III would not have to register as an investment adviser or an investment adviser representative under the Investment Advisers Act of 1940. Whole life and term life policies, commodity futures, and FDIC-insured bank products are excluded from the definition of a security, and those persons selling these products need not register. Therefore, the insurance agent, the commodity futures broker, and the bank employee who sells only FDIC-insured bank securities need not register. Even if a person is registered as a broker-dealer with the SEC, if that entity also provides investment advice to its customers for additional compensation, it must register as an investment adviser.
Gracia
2 days agoMozell
6 days ago