Which of the following is NOT exempt from registration as an investment adviser or an investment adviser representative in the state in which a place of business is maintained?

A. A certified financial planner who prepares financial plans and whose only compensation is commissions.

B. An insurance agent who prepares comprehensive financial plans and receives commissions on any insurance products purchased by his clients.

C. A broker-dealer exclusively engaged in retail securities transactions in the state

D. The SWW Growth Fund, a mutual fund with an office and shareholders in the state

There are two answers possible for this question: Which of the following is NOT exempt from registration as an investment adviser or an investment adviser representative in the state in which a place of business is maintained. The answers are as follows, according to the rules established in the Uniform Securities Act.

1. A: A certified financial planner who prepares financial plans and whose only compensation is commissions. The reason for this first one being the first choice answer is that financial planners advice people on how to invest their money, and win commission for giving out such advice. According to the Uniform Securities Act, these financial planners therefore, because they gain from giving out financial advice, they must register.

2. B: An insurance agent who prepares comprehensive financial plans and receives commissions on any insurance products purchased by his clients. The reason for this one also comes from the fact that this agent is generating financial planning, which includes advising the clients on the products to be purchased, and gaining a commission for it. Since this agent is acting as an investment adviser, then he too must register.