Series 63 practice questioneasyFederal Covered Advisers
Federal covered advisers must register with the SEC. Under the USA, which of the following statements is TRUE regarding state registration?
- AFederal covered advisers are generally exempt from state registration requirements.✓ Correct answer
- BFederal covered advisers must always register with each state where they have clients.
- CFederal covered advisers are only exempt if their clients are institutions.
- DState registration is required only if the adviser has more than 5 clients in the state.
Explanation
Why A — Federal covered advisers are generally exempt from state registration requirements.
Federal covered advisers register with the SEC and are generally exempt from state adviser registration, though states may require notice filings (Section 403(b)(2)).
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