Answered

Westonci.ca offers fast, accurate answers to your questions. Join our community and get the insights you need now. Join our platform to get reliable answers to your questions from a knowledgeable community of experts. Get precise and detailed answers to your questions from a knowledgeable community of experts on our Q&A platform.

An agent employed at First XYZ Securities produces his own research reports and provides them to a select group of personal clients. The agent has written permission from his employer to engage in this activity, provided the time spent on the project is conducted after working hours. Under the Investment Advisers Act of 1940, if the agent does not charge fees for the research but receives commissions from his employing broker-dealer for trades executed through the firm, A) the agent must register as an investment adviser representative B) the agent must register as an investment adviser because the research is being done after hours C) the broker-dealer must register as an investment adviser and the agent as an investment adviser representative D) neither the agent nor his employing broker-dealer need register as an investment adviser

Sagot :

eooyibo123

Answer:

D) neither the agent nor his employing broker-dealer need register as an investment adviser

Explanation:

In the given scenario the agent produces his own research reports and provides them to a select group of personal clients.

He has permission from his employer to do this.

According to the Investment Advisers Act of 1940 the agent will only be excluded from being an investment advisor when he receives special compensation for giving investment advise.

Special compensation is when the agent is paid even when there are no transactions occuring.

In this case it's only when there is a transaction that the agent gets paid a commission. So this is not a special compensation.

As such neither the agent nor his employing broker-dealer need register as an investment adviser.

Thanks for using our service. We aim to provide the most accurate answers for all your queries. Visit us again for more insights. Thank you for choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. Stay curious and keep coming back to Westonci.ca for answers to all your burning questions.