Lucky the Banker mascotLTB
Series 63: Regulation of Investment Advisers
Series 63 practice questioneasyPlace of Business — De Minimis Rule

An IAR employed by a Chicago-based adviser has 2 non-institutional clients in State Y but no office there. According to the USA, which statement is CORRECT?

  1. ARegistration in State Y is not required due to the de minimis exemption.✓ Correct answer
  2. BRegistration in State Y is required, regardless of client count.
  3. CRegistration is only required if the IAR solicits new clients in State Y.
  4. DRegistration is only required if the clients are institutional.
Explanation

Why ARegistration in State Y is not required due to the de minimis exemption.

The de minimis exemption allows up to 5 non-institutional clients in a 12-month period without requiring registration (USA §401(4)), as long as there is no office in the state. B, C, and D are incorrect under the USA.

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