Exempt Vs Excluded

Sec 3.3.1 lists persons who are “excluded” from the definition of an investment adviser. Would the correct term be “exempt”?

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No - it is still ‘excluded.’ While the term ‘excluded’ means something doesn’t meet the definition and ‘exempt’ means an exception, our lawmakers who created the Uniform Securities Act sometimes used the two terms in weird ways. I agree with your synopsis - some of the listed ‘exclusions’ certainly seem like they’re actually exempt. However, we’re presenting the information as it was written in the law, which is how it will be tested on the exam.

Good news - you probably won’t encounter many (or any) questions regarding the differences between these terms. If you do encounter one or a few, it should be pretty clear if you understand the definitions of each term.