Under state law, which entity is excluded from the definition of investment adviser?

• A. Banks, savings institutions, trust companies
• B. A corporate attorney providing occasional advice
• C. A real estate broker offering investment quotes
• D. A financial planner with ongoing advisory fees

Answer: (A)

Under state securities laws, banks, savings institutions, and trust companies are explicitly excluded from the definition of investment adviser. This banking exclusion recognizes that these institutions are regulated as banks and often provide trust or fiduciary services; their advisory activities are overseen by banking regulators rather than state securities regulators, so they’re not treated as investment advisers under the securities statute.

Among the options, the entity described as banks, savings institutions, or trust companies fits this exclusion, so it is not considered an investment adviser for registration purposes. The other entities would generally be considered investment advisers if they provide advice about securities for compensation (for example, a corporate attorney’s advice is only excluded if incidental to the practice of law, a real estate broker’s investment quotes could cross into securities advisory activity, and a ongoing-fee financial planner typically is regarded as an adviser).