Definitions of Investment Advisers: Rapid Fire

What this video covers

• The three prongs of the ABC test for investment adviser (IA) status: Advice about securities, as a Business, for Compensation
• Why compensation is read broadly by regulators, including commissions, subscription fees, third-party pay, and any economic benefit flowing from the advice
• The critical distinction between excluded persons (not an IA at all) and exempt persons (an IA excused from registration), and why neither escapes antifraud liability
• The L-A-T-E memory aid for excluded professionals (Lawyers, Accountants, Teachers, Engineers) and why the no-special-compensation condition applies only to broker-dealers
• The AUM thresholds that determine state versus Securities and Exchange Commission (SEC) registration, including the mandatory $110 million floor, the $100-110 million optional zone, and the $90 million drop-back trigger
• Registration requirements: Form ADV, the once-filed irrevocable consent to service of process, and the de minimis exemption (no place of business plus 5 or fewer non-institutional clients in 12 months)
• Why gross performance never stands alone in IA advertising, and why testimonials are conditional rather than banned