Series 63 practice questionmediumInvestment Adviser Representatives — State Jurisdiction
A registered investment adviser (state-registered) located in State Z employs Tom, who provides advice only to clients in State Y, where the firm is not registered. Under the USA, in which state must Tom be registered as an investment adviser representative?
- AOnly in State Y.✓ Correct answer
- BIn both State Z and State Y.
- CRegistration is not required in either state.
- DOnly in State Z.
Explanation
Why A — Only in State Y.
Under the USA, an IAR must register in any state where they have a place of business or where they provide advisory services to clients. Since Tom advises clients only in State Y and has no place of business in State Z, he must register only in State Y (USA Section 402(c)).
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