I could swear I missed a practice question recently that said somethin...

Let’s distinguish an “exclusion” from an “exemption.” Some institutions and individuals are excluded from the definition of “investment adviser.” This includes banks and savings institutions. They are simply not investment advisers. A broker-dealer or securities agent who provides some investment advice but is compensated only as a broker-dealer or agent also escape the definition of “investment adviser.” That is also true of certain professionals—lawyer, accountant, teacher, or engineer—whose advice is incidental to their profession. For example, if a CPA tells a tax planning client that opening a SIMPLE IRA would provide tax advantages, the CPA is not acting as an investment adviser. However, if the CPA goes too far and tells the business owner that mutual funds are “better” than other investment vehicles, now the CPA is acting as an investment adviser—probably an unregistered one, at that.

So, if these professionals refrain from offering investment advice, they are excluded from the definition of “investment adviser.” An exemption implies an investment adviser or IAR are not subject to registration in a particular jurisdiction—but, they are, still investment advisers or IARs.