🏦LTB
← Series 63: Regulation of Investment Advisers
Series 63 practice questioneasyState Registration Exemptions

For a mock NASAA exam, assume the administrator is testing this exact point. Assume the administrator is testing the cleanest state-law answer. Which of the following is NOT required to register as an investment adviser in a state under the Uniform Securities Act?

  1. AA firm with no place of business in the state and only institutional clients in that state✓ Correct answer
  2. BA sole proprietor providing investment advice to local residents for a fee
  3. CA firm with no place of business in the state but advising five retail clients in that state during the past 12 months
  4. DA firm with an office in the state and retail clients
Explanation

Why A — A firm with no place of business in the state and only institutional clients in that state

The USA provides an exemption from state registration for investment advisers with no office in the state who only deal with institutional clients (USA Section 403(b)(2)). Advisers with an office or those advising retail clients must register unless another exemption applies. State-law analysis leads to the same conclusion despite the alternate scenario.

Turn it into reps

Reading one answer is not the same as being ready

Lucky the Banker is a free practice app with 646+ Series 63 questions, weak-area tracking, and timed mock exams. No credit card, no paywall.

Practice Series 63 freeSeries 63 exam guide
Related Regulation of Investment Advisers questions