I own a fee-only planning firm in Ohio and I recommend only mutual funds, not individual stocks, as part of my practice. Am I subject to the new Ohio law?
Yes. The new law does not distinguish between kinds of securities or types of compensation. Q: My primary practice is in taxes, not investment advice. Occasionally, however, my clients will ask me about the tax effect on their portfolios. Do I fall under the solely incidental exemption for accountants? A: Maybe. In general, three (3) factors are relevant to the availability of the “solely incidental” exclusion: (1) whether the person holds himself or herself out to the public as an investment advisor, financial planner, or other provider of advisory services; (2) whether the advisory services are rendered in connection with, and reasonably related to, the professional services; and, (3) whether the fee charged for advisory services is based on the same factors as those used to determine the fee for professional services. Also, keep in mind that, to fit within the definition of “investment advisor,” it is not necessary for a person’s activities to consist solely of investment advisory s
Related Questions
- I own a fee-only planning firm in Ohio and I recommend only mutual funds, not individual stocks, as part of my practice. Am I subject to the new Ohio law?
- Is Top-Down Market Research, LLC paid to recommend specific stocks or mutual funds?
- Does THOR use mutual funds or individual stocks/bonds in clients’ portfolios?
