Series 63 practice questionmediumFederal Covered Adviser – State Notice
A federal covered adviser with an office in State D manages mutual fund assets and has retail clients in State D. Which of the following may State D require of the adviser?
- ANotice filing and fee payment.✓ Correct answer
- BFull state registration as an IA.
- CNo filings or compliance with state law.
- DRegistration of all employees as IARs regardless of office location.
Explanation
Why A — Notice filing and fee payment.
States may require notice filings and fees from federal covered advisers, but not full IA registration (Section 405). Registration of all employees is not required unless they do business in that state.
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