Series 14: 7.2.3.1. Definition Of Investment Adviser

7.2.3.1. Definition of Investment Adviser

The Investment Advisers Act of 1940 defines an investment adviser as:

Any person or firm that is in the business of providing advice or reports about securities for compensation

Compensation may be in the form of an advisory fee or a commission. Investment advice about securities may include advice about stocks, bonds, mutual funds, limited partnerships and commodity pools, market trends, and asset allocation.

There are certain entities that are not considered investment advisers by the Advisers Act, even though they may give occasional investment advice. This is because the advice is incidental to their business. These include:

•Banks

•Lawyer