7.7.1.1 People and Entities Excluded from Investment Adviser Definition
Here’s the full list of entities that are excluded from the definition of investment adviser under the Uniform Securities Act, along with a brief explanation below each one. This means that the following entities do not have to register as investment advisers and are not subject to the regulations that were written for investment advisers.
(1) an investment adviser representative;
Explanation: An investment adviser representative (IAR) is someone who works for an investment adviser, and thus is not actually considered an investment adviser. Note, however, that an investment adviser representative still must register as an IAR.
(2) a bank, savings institution, or trust company;
Explanation: Since banks, savings institutions, and trust companies fall under separate regulations and oversight, they’re not typically required to register as investment advisers on a state level.
(3) a lawyer, accountant, engineer, or teacher whose performance of [investment advice] is solely incidental to the practice of [the person’s] profession;
Explanation: Anyone who gives investment advice as a smaller, non-integral part of another profession is not considered an investment adviser. If at any point, however, providing investment advice becomes the primary purpose of the relationship they have with someone, they immediately become defined as an investment adviser. You can remember these exclusi