Investment Adviser (USA Definition)
Advises on securities, as a business, for compensation.
What is Investment Adviser (USA Definition)?
Any person who, for compensation, engages in the business of advising others about the value of securities or the advisability of investing in them, or issues analyses or reports on securities as part of a regular business. All three elements - securities advice, being in the business, and compensation - must be present. Financial planners and pension consultants who meet them are investment advisers.
Investment Adviser (USA Definition): a worked example
A planner who charges a fee for plans that recommend specific mutual funds is an investment adviser.
More terms in Uniform Securities Act & Registration
Uniform Securities Act (USA)
The model state securities law most states' 'blue sky' statutes are based on.
State Securities Administrator
The official or agency that enforces a state's securities act.
Person (USA Definition)
Anyone who can be held legally responsible - individuals and organizations.
Excluded from the Investment Adviser Definition
Banks, incidental professionals, broker-dealers, and publishers are not advisers at all.
Exemptions from State Adviser Registration
An adviser with no office in the state and only institutional or very few clients there.
De Minimis Exemption
No place of business in the state and fewer than 6 clients there in 12 months.
Federal Covered Adviser
An adviser registered with the SEC rather than the states.
Exempt Reporting Adviser
A private fund adviser exempt from SEC registration but still filing reports.
All Uniform Securities Act & Registration terms · Full glossary