Series 63 practice questionmediumExemptions – Snowbird Rule
An adviser based in State B has a client who spends winters in State C but is still a legal resident of State B. The adviser provides advice only to this client. Must the adviser register in State C?
- ANo, because the client is not a resident of State C.✓ Correct answer
- BYes, because advice is given while the client is in State C.
- CYes, if the client receives advice in State C for more than 30 days.
- DNo, if the adviser has fewer than five clients in State C.
Explanation
Why A — No, because the client is not a resident of State C.
Under the snowbird rule, advisers are not required to register in a state simply because a client temporarily resides there; registration is based on residency (Section 403).
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