Series 63 practice questioneasyExemptions — Federal Covered Advisers
A federal covered investment adviser is one that:
- AIs registered with a state Administrator and manages less than $25 million
- BIs registered with the SEC and is generally exempt from state registration requirements✓ Correct answer
- COnly advises federal government pension plans
- DHas offices in all 50 states
Explanation
Why B — Is registered with the SEC and is generally exempt from state registration requirements
Under the National Securities Markets Improvement Act (NSMIA), federal covered advisers are those registered with the SEC, typically because they manage $100 million or more in assets. While they must file notice with the state and pay fees, they are generally exempt from state registration. States may not impose additional substantive requirements on them.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 1,051+ Series 63 questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Spot an error in this question or explanation? Tell us — we fix these fast.
Related Regulation of Broker-Dealers & Agents questions
- If a broker-dealer is exempt from state registration, the agents of that broker-dealer:
- A broker-dealer with no office in a state is exempt from registration in that state if its only transactions are with:
- Which of the following is considered an institutional investor for purposes of broker-dealer registration exemptions…
- An agent's registration in a state expires on:
- Pinnacle Securities is a broker-dealer with its only office in State A. It has no office in State B. Pinnacle receives…
- Lisa is registered as an agent in State A through her broker-dealer. She attends a conference in State B and, during a…
- Global Investments, a Canadian broker-dealer with no U.S. office, effects transactions exclusively with U.S.…
- Under the Uniform Securities Act, which of the following individuals is NOT considered an agent?