Under state law, which item is an exclusion from the definition of investment adviser?

• A. Investment Adviser Representatives
• B. A registered investment adviser with many clients
• C. A bank trust department
• D. A corporate CFO giving tax advice

Answer: (A)

The main concept here is that certain individuals and entities are not considered investment advisers under state law because they operate in a different, regulated capacity. Specifically, Investment Adviser Representatives are not defined as investment advisers themselves; they are excluded from the definition because they act on behalf of an investment adviser and provide advice within the adviser’s business. They’re regulated as IARs rather than as IAs.

So, the correct choice identifies that Investment Adviser Representatives are excluded from being defined as an investment adviser. The other options describe roles that either would typically be the adviser (a registered IA with many clients) or are not the standard exclusions emphasized in the definition (a corporate CFO giving tax advice), with a bank trust department sometimes treated as excluded in banking contexts but not the focus of this particular exclusion question.