Asked in Securities Law for New York

Q: I have questions regarding securities and exchange commission laws.

I own a options trading website where I provide trade ideas of specific stock tickers based on fundamental and technical analysis. I charge subscribers monthly fees. I do not provide investment advice of any sort, just trade ideas of good stock setups. I don’t tell my subscribers what to do from my ideas. Will I come under the definition of an investment advisor ?

Or will I be excluded from the advisers act under the publishers section ? ( Section 202 a.11)D )

Related Topics:
1 Lawyer Answer
Kevin Abessi
Kevin Abessi
  • Franklin Lakes, NJ
  • Licensed in New York

A: Given the facts at hand, you appear to be on the right track. A seminal case is Lowe v. SEC, 472 U.S. 181 (1985), which essentially declared that an exclusion from the definition of investment adviser is available to any publisher of a newsletter as long as remains entirely impersonal and does not develop the kind of one-on-one fiduciary relationship that is characteristic of an investment adviser-client relationship. This has been show to apply to digital properties, too. Please note that this area is more involved than the holding in Lowe, and lawyers would need more facts pertaining to your situation in order to more confidently draw a conclusion. However, with what I know, you seem well-positioned for the exclusion, meaning you wouldn't need to register as an investment adviser. One caveat: one should also check with the laws of one's state in addition to federal law.

1 user found this answer helpful

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.