Investment Adviser

C is correct. Publishers of bona fide newsletters, magazines, or newspapers of general 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) and D ($200 million) are not regulatory thresholds under the Investment Advisers Act of 1940.

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 the institutional client exemption applies to not having to COUNT certain clients toward the "fewer than 15 clients" exemption, not to AUM thresholds.

C is correct (the EXCEPT answer). 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 "comprehensive financial plan" does not create an exclusion.

A is excluded: banks and bank holding companies are specifically excluded from the IA definition. B is excluded: lawyers, accountants, engineers, and teachers are excluded when advice is incidental to their profession and they receive no special compensation for it. D is excluded: publishers of bona fide newspapers, magazines, or newsletters of general 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 2 (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: Investment advisers can NEVER guarantee returns. This violates fiduciary duty and is prohibited under the Investment Advisers Act. Advisers owe fiduciary duties of care and loyalty, not return guarantees.