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Question and Answer: 455
Related Certification(s): GAQM: Software Quality Assurance
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NEW QUESTION: 1
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
IV. a person that is registered as a broker-dealer with the SEC that also provides investment advice to its
customers for additional compensation
A. I, II, III, and IV
B. I and III only
C. II and III only
D. I, II, and III only
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
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