HarborView Consultants is a partnership located in State A that provides investment advice exclusively to five high-net-worth individuals: two are residents of State B, and three are residents of State C. HarborView does not maintain offices in States B or C, nor does it solicit any other clients in those states. Under the Uniform Securities Act, which of the following best describes HarborView’s registration and exemption status as an investment adviser in States B and C?

1. AHarborView is only exempt from registration in State C, since it has more than five clients in State B.
2. BHarborView is exempt from registration in both States B and C under the de minimis exemption, provided it has no place of business there and fewer than six clients in each state.✓ Correct answer
3. CHarborView is not considered an investment adviser in States B and C under the USA due to the lack of physical presence.
4. DHarborView must register as an investment adviser in both States B and C because it has clients who are residents there.

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.

• Under the Uniform Securities Act, which of the following is generally required to register as an investment adviser at…
• Blue Lake Trust Company is a state-chartered bank that provides financial planning services to its trust clients for a…
• Which of the following is NOT required to register as an investment adviser in a state under the Uniform Securities Act?
• Which of the following would be excluded from the definition of investment adviser under the USA's publisher exemption?