Under the Uniform Securities Act, an investment adviser may share in the profits of a client's account:

A. if the agreement provides for this in writing

B. if the Administrator approves

C. if the adviser agrees to share equally in any losses in the account

D. under no circumstances

Question

Jerimiah Kim

Business

28 January, 09:48

Under the Uniform Securities Act, an investment adviser may share in the profits of a client's account:

A. if the agreement provides for this in writing

B. if the Administrator approves

C. if the adviser agrees to share equally in any losses in the account

D. under no circumstances

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Answers (1)

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Raven Wise · Answer 1

D. under no circumstances

Explanation:

An investment adviser uses his investment knowledge to guide his client with respect to investing in stocks and other securities so as to maximize client's gain.

In return for his services, an investment adviser charges a certain fee from the clients.

As per the Uniform Securities Act, an investment adviser is prohibited from sharing the profits of the client which could be in the form of any dividend/interest receipts or capital appreciation.

Thus, under no circumstances, an investment adviser is permitted to share profits of the client.

Under the Uniform Securities Act, an investment adviser may share in the profits of a client's account:A. if the agreement provides for this in writingB. if the Administrator approvesC. if the adviser agrees to share equally in any losses in the accountD. under no circumstances

Under the Uniform Securities Act, an investment adviser may share in the profits of a client's account:

A. if the agreement provides for this in writing

B. if the Administrator approves

C. if the adviser agrees to share equally in any losses in the account

D. under no circumstances