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Erin is a registered agent who works for SecureMoney Brokers-dealers. One of her clients, Mrs. McTurk, is a recently-widowed woman who relies on Erin for advice about her investment portfolio. Mrs. McTurk reminds Erin of her own grandmother, and she is happy to provide guidance within the sphere of her own knowledge.
Based on these facts, which of the following statements is true?
Suggested Answer: D
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Neither SecureMoney Broker-dealers nor Erin must register as an investment adviser based on the facts provided since neither the broker-dealer nor Erin is receiving any compensation for the advice Erin is giving Mrs. McTurk. In this instance, the advice provided is considered incidental to the broker-dealer business.
29 comments · newest first
DO
Dong
9 hours ago
I disagree. Maybe they don’t need to register at all.
MI
Micheline
6 days ago
I feel like option C makes the most sense. Both should register.
ME
Meaghan
11 days ago
Yeah, but what about the firm? They might need to register too.
LY
Lynna
16 days ago
I think Erin needs to register as an adviser. She's giving advice.
GR
Graciela
21 days ago
I see both sides, but I think C covers all bases.
MA
Maxima
26 days ago
I’m with Elenor. The facts don’t imply registration is necessary.
CA
Carlee
1 month ago
But SecureMoney might be fine if they’re not giving advice directly.
SH
Shaquana
1 month ago
Option B seems right. Erin is directly advising Mrs. McTurk.
EL
Elenor
1 month ago
I disagree. I feel neither needs to register based on the scenario.
DA
Daron
2 months ago
I lean towards option C. Both should register.
MA
Marget
2 months ago
Yeah, but what about the firm? They might need to register too.
AN
An
2 months ago
I think Erin needs to register as an adviser. She's giving advice.
HE
Helga
2 months ago
I’m with C. Better safe than sorry for both.
DI
Dick
2 months ago
B is clear. Erin is the one advising Mrs. McTurk.
GI
Gilma
2 months ago
I lean towards D. It’s a gray area.
LE
Leota
3 months ago
I feel like C covers all bases. Both should register.
AL
Alfred
3 months ago
A is off. The firm isn't necessarily an adviser just because of Erin.
KI
Kimbery
3 months ago
D seems right. They might not need to register.
CO
Corrina
3 months ago
I agree, but C makes sense too. The firm should register.
BL
Blondell
3 months ago
I think B is correct. Erin is giving advice.
LA
Laquanda
3 months ago
I’m surprised this isn’t more straightforward!
JE
Jerilyn
4 months ago
SecureMoney Broker-dealers probably need to register too.
EV
Evette
4 months ago
Wait, can’t she just be a broker without registering?
JU
Julio
4 months ago
I agree, she’s giving investment advice!
VA
Vallie
4 months ago
Erin definitely needs to register as an investment adviser.
CL
Clare
4 months ago
I feel like the answer might be D, but I can't recall if providing advice changes the registration rules for either Erin or the firm.
LE
Lelia
6 months ago
I’m a bit uncertain about the difference between the firm and Erin’s responsibilities. Does the firm automatically need to register if an employee does?
RO
Rossana
6 months ago
I remember a practice question where a broker-dealer had to register because of advice being given. Could that apply here too?
RE
Rebeca
6 months ago
I think Erin might need to register as an investment adviser representative since she’s giving advice, but I’m not sure about the firm’s registration requirements.