Series 63 practice questioneasyIA Exemptions and Exclusions — Adviser to Institutions
During a compliance drill, focus on how the Uniform Securities Act applies here. The key is the registration, exemption, or ethical rule doing the real work. Which of the following persons is EXEMPT from registration as an investment adviser under the Uniform Securities Act?
- AAn adviser who has an office in the state and serves both individuals and institutions
- BAn adviser whose only clients are insurance companies✓ Correct answer
- CAn adviser who solicits individual retail clients in multiple states
- DAn adviser who provides advice about municipal bonds to individuals
Explanation
Why B — An adviser whose only clients are insurance companies
Under the USA, an investment adviser whose only clients are institutions such as insurance companies is exempt from registration (Section 403(b)(3)). The extra setup is just noise; the controlling state-law rule stays the same.
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