Lucky the Banker mascotLTB
← Series 63: Regulation of Investment Advisers
Series 63 practice questionmediumEdge Case: Pension Fund Advisory

An adviser with no physical office in State Q provides advice exclusively to a corporate pension fund registered with the SEC. Is the adviser required to register in State Q?

  1. AYes, since the pension fund is a private entity.
  2. BNo, because advice is limited to an institutional client and there is no office in State Q.✓ Correct answer
  3. CYes, because the pension fund is not a bank or insurance company.
  4. DNo, but only if the pension fund does not compensate the adviser.
Explanation

Why B — No, because advice is limited to an institutional client and there is no office in State Q.

The institutional adviser exemption (USA 403(b)(7)) includes pension funds; no office and exclusive institutional clients means no registration required. Options A and C misunderstand the scope; D incorrectly adds a compensation condition.

Turn it into reps

Reading one answer is not the same as being ready

Lucky the Banker is a free practice app with 1,051+ Series 63 questions, weak-area tracking, and timed mock exams. No credit card, no paywall.

Spot an error in this question or explanation? Tell us — we fix these fast.

Related Regulation of Investment Advisers questions