Series 63 practice questioneasyAdvisers to Insurance Companies
An adviser whose only clients are insurance companies is:
- AExempt from registration as an investment adviser under the USA.✓ Correct answer
- BRequired to register with the SEC.
- CConsidered a federal covered adviser.
- DRequired to register in every state where it operates.
Explanation
Why A — Exempt from registration as an investment adviser under the USA.
Advisers whose only clients are insurance companies are exempt from state registration under the USA (Section 403(b)(6)). SEC registration may not be required unless other criteria are met.
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