Series 63 practice questionhardFederal Covered Adviser – Private Fund Exemption
A private fund adviser with $120 million AUM has only qualified purchasers as clients in State F. Under the USA, what is the adviser's registration status?
- AExempt from state registration but must register with the SEC.✓ Correct answer
- BRequired to register in State F only.
- CRequired to register both with the SEC and State F.
- DExempt from all registration requirements.
Explanation
Why A — Exempt from state registration but must register with the SEC.
A private fund adviser with over $110 million AUM is a federal covered adviser, exempt from state registration but subject to SEC registration and possible state notice filing (NSMIA/Section 403(b)).
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