What is the key condition that allows an adviser to not be viewed as acting as a broker during a cross transaction?

The key condition that allows an adviser to not be viewed as acting as a broker during a cross transaction is the receipt of only the advisory fee without any brokerage commission. This distinction is crucial because it highlights the role of the adviser as a fiduciary, focused on providing advice rather than engaging in brokerage activities. When advisers are compensated solely through advisory fees, they maintain their status as investment advisers and avoid the regulatory implications associated with brokerage transactions.

In cross transactions, advisers need to carefully navigate their fee arrangements to ensure they are acting in the best interests of their clients, without the potential conflict of interest that can arise from earning a commission tied to the transaction. By receiving an advisory fee alone, advisers demonstrate their commitment to serving their clients' interests without the incentives that commissions might create, allowing them to maintain transparency and compliance with regulatory standards.