Investment Adviser Regulation: Rapid Fire
Chapters in this video
- 0:00 The ABC test and the three prongs
- 2:17 Who gets excluded: L.A.T.E. professionals and broker-dealers
- 3:37 Exemptions versus exclusions: two different hall passes
- 4:50 State or SEC registration: the AUM thresholds
- 6:13 Registration effective dates and the consent to service of process
- 7:01 Rapid-fire exam recap
What this video covers
- The three-part ABC test for investment adviser (IA) definition (Advice about securities, as a Business, for Compensation) and why missing any single prong kills the IA status
- How compensation is read broadly to include any economic benefit, including third-party kickbacks, transaction fees, or non-cash perks
- The distinction between excluded persons (not an IA at all, zero obligations) and exempt IAs (no registration but still bound by antifraud rules)
- The L.A.T.E. professional exclusion for lawyers, accountants, teachers, and engineers, and how special compensation destroys it
- Why broker-dealers lose their exclusion when advice is not solely incidental OR when they receive special compensation for it
- The two registration exemptions (institutional-only and de minimis 5-or-fewer non-institutional clients) and why having any place of business in the state defeats both
- State versus SEC registration lines by assets under management (AUM), the $90 million to $110 million buffer, and why federal covered advisers only notice-file
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