According to the Advisers Act, how is a single client defined?

A single client, as defined by the Advisers Act, generally refers to a single natural person. This definition emphasizes that when an investment adviser provides services, that client is usually an individual human being rather than a group. In the context of the Advisers Act, the focus is on the relationship between the adviser and the client as a separate individual entity, which forms the basis for understanding client-related regulations and obligations.

The importance of recognizing 'a single natural person' lies in the regulatory framework that seeks to protect individual investors from potential conflicts of interest, unsuitable investment recommendations, or fiduciary breaches. This definition helps in ensuring that advisers provide tailored advice based on the specific financial situation and goals of the individual client.

In contrast, a legal entity receiving advice, such as a corporation or partnership, would not be classified as a single natural person under the Advisers Act. Similarly, a group of individuals sharing assets refers to a collective that is treated differently under regulation. Minors are also categorized separately within financial regulations due to their legal status and capacity to enter contracts.