Series 63 practice questionmediumDe Minimis Across States
An IA is registered in State T and has no office in State S. It provides advice to 3 non-institutional clients in State S. Which action must the IA take with respect to State S?
- ANo registration is required due to the de minimis exemption✓ Correct answer
- BRegister in State S immediately
- CFile a notice with State S
- DRegister representatives in State S
Explanation
Why A — No registration is required due to the de minimis exemption
The IA has no place of business and fewer than 5 non-institutional clients in State S, so the de minimis exemption applies (Section 403(b)(2)). No filing is required.
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