Series 63 practice questioneasyReg D and State Law
A sale made in compliance with federal Regulation D Rule 506 is:
- AExempt from state registration as a federal covered security, although a state may require a notice filing and fee✓ Correct answer
- BExempt from state registration only if it separately meets the state private-placement exemption
- CSubject to state qualification unless the Administrator grants a waiver
- DExempt from state antifraud enforcement
Explanation
Why A — Exempt from state registration as a federal covered security, although a state may require a notice filing and fee
Securities offered under Rule 506 are federal covered securities. States may require a Form D notice filing and fee and may enforce antifraud laws, but may not require state registration or qualification.
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