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?
- ARegistration in State Y is not required due to the de minimis exemption.✓ Correct answer
- BRegistration in State Y is required, regardless of client count.
- CRegistration is only required if the IAR solicits new clients in State Y.
- DRegistration is only required if the clients are institutional.
Explanation
Why A — Registration 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.
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