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← Series 63: Regulation of Broker-Dealers & Agents
Series 63 practice questionmediumExemptions — Notice Filing

A federal covered adviser that has clients in a state must:

  1. ARegister with the state Administrator just like a state-registered adviser
  2. BDo nothing, as the SEC registration covers all states
  3. CFile a notice with the state, pay applicable fees, and consent to service of process✓ Correct answer
  4. DObtain a state business license before advising clients in the state
Explanation

Why C — File a notice with the state, pay applicable fees, and consent to service of process

Under USA Section 203A and NSMIA, federal covered advisers are not required to register with the state but must file notice (typically a copy of their Form ADV), pay applicable fees, and consent to service of process. The state retains authority to investigate fraud but cannot impose additional registration requirements beyond notice filing.

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