Series 63 practice questionmediumState Registration Triggers
A firm located in State A has no office in State B but provides advisory services to 7 non-institutional clients in State B over the past 12 months. Under the USA, the firm must:
- ARegister in State B✓ Correct answer
- BRely on the de minimis exemption
- CRegister only its investment adviser representatives
- DFile a notice with State B
Explanation
Why A — Register in State B
The de minimis exemption applies to 5 or fewer non-institutional clients in 12 months; 7 clients exceeds this (Section 403(b)(2)). The adviser must register in State B.
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