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← Series 63: Regulation of Investment Advisers
Series 63 practice questioneasyIA Exemptions and Exclusions — Intrastate Adviser Exemption

For a mock NASAA exam, assume the administrator is testing this exact point. The key is the registration, exemption, or ethical rule doing the real work. According to the Uniform Securities Act, an investment adviser whose only clients are residents of the state where the adviser’s principal office is located and who does not give advice involving securities listed on a national securities exchange is:

  1. AExempt from federal registration but may need to register at the state level✓ Correct answer
  2. BRequired to register with the SEC
  3. CExempt from state registration requirements
  4. DRequired to register in all states where it has clients
Explanation

Why A — Exempt from federal registration but may need to register at the state level

The USA exempts certain intrastate advisers from federal registration, but they may still be required to register with the state (Section 403(b)). The governing USA principle is unchanged even though the framing is different.

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