What is Investment Adviser?

C is correct. Publishers of bona fide newsletters, magazines, or newspapers of general and regular circulation are excluded from the investment adviser definition, even if they receive compensation and discuss securities. The key is that the advice must be impersonal (not tailored to individual clients' situations).

A and B are partially correct about compensation and securities advice but ignore the publisher exclusion. D is incorrect because there is no $500 annual fee threshold for exemption. The publisher exclusion is based on the nature of the publication, not the subscription price.

B is correct. Investment advisers with $110 million or more in AUM are required to register with the SEC (federal covered advisers). Advisers with AUM between $100-$110 million have the option to register with either the SEC or state, but registration becomes mandatory at $110 million.

A ($100 million) is the lower threshold where SEC registration becomes optional, not mandatory. C ($150 million) is not the SEC/state switching line; under the Advisers Act it is the ceiling for the separate private fund adviser exemption. D ($200 million) is not an Advisers Act threshold.

C is correct. Calculate: $95M current + (3 clients × $8M) = $95M + $24M = $119M projected AUM. Since $119M exceeds the $110M threshold, Jackson Advisory must register with the SEC.

A (State only) would apply only if AUM remained below $100M. B (Optional registration) applies to the $100-$110M range, but $119M exceeds this. D is incorrect because serving institutional clients does not remove the registration obligation; the state institutional-client exemption only spares an adviser with no place of business in a state from registering in that state, and it has nothing to do with the SEC AUM thresholds.

C is correct (the exception). A financial planner who provides advice about securities for compensation is an investment adviser and must register. The fact that the advice is part of a "complete financial plan" does not create an exclusion.

A is excluded: banks and bank holding companies are excluded from the IA definition, except to the extent they advise a registered investment company. B is excluded: lawyers, accountants, engineers, and teachers are excluded when their advice is solely incidental to the practice of their profession. D is excluded: publishers of bona fide newspapers, magazines, or newsletters of general and regular circulation are excluded.

B is correct. Statements 1, 2, and 3 are accurate requirements for SEC-registered investment advisers.

Statement 1 is true: All SEC-registered advisers must file both Part 1 (regulatory information) and Part 2A (firm brochure) of Form ADV.

Statement 2 is true: Form ADV must be updated annually within 90 days of the adviser's fiscal year end, and material changes must be updated promptly.

Statement 3 is true: Investment advisers must deliver Form ADV Part 2 (the brochure) to clients at or before entering into an advisory contract, providing full disclosure of services, fees, conflicts, and disciplinary history.

Statement 4 is false: Guaranteeing a client a specific result is an unethical business practice under the NASAA model rule, and it is not a condition of SEC registration. Advisers owe fiduciary duties of care and loyalty, not return guarantees.