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.
- BIn both State Z and State Y.✓ Correct answer
- CRegistration is not required in either state.
- DOnly in State Z.
Explanation
Why B — In both State Z and State Y.
USA Section 402(c) requires IARs of state-registered advisers to register in any state where they have a place of business or where they offer advisory services to clients.
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