Series 63 practice questioneasyInstitutional exemption
A broker-dealer with no place of business in a state is not required to register if its only clients in the state are:
- AIndividuals over the age of 65
- BBanks and other financial institutions✓ Correct answer
- CResidents purchasing for personal accounts
- DUnregistered investment advisers
Explanation
Why B — Banks and other financial institutions
USA Section 401(b)(2) grants exemption to BDs with no office in the state whose clients are only institutions like banks. Personal accounts (A, C) and unregistered advisers (D) do not qualify for this exemption.
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