Investment advisers may not, by law, be the managers of an investment company.

Question

Quizplus · Accepted Answer

Investment advisers can be managers of an investment company, but they must register with the Securities and Exchange Commission (SEC) or state regulatory agencies and comply with certain regulations. However, they may not engage in certain activities that would create conflicts of interest, such as self-dealing or making excessive transactions to generate commissions.

Investment Advisers May Not, by Law, Be the Managers of an Investment