Series 63 practice questioneasyMulti-state IA registration
A state-registered investment adviser with $60 million AUM has an office in State X and six non-institutional clients in each of States Y and Z. It has no office in Y or Z. In which states must it register?
- AState X only
- BStates X and Y only
- CStates X, Y, and Z✓ Correct answer
- DNo registration required due to federal preemption
Explanation
Why C — States X, Y, and Z
The adviser must register in State X because it has a place of business there. It exceeds the five-client de minimis limit in both States Y and Z, so it must register in all three states.
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