Series 63 practice questionmediumEffect of NSMIA on State Law
How did the NSMIA affect state authority over the registration of certain securities?
- AIt limited states’ authority to require registration of federally covered securities✓ Correct answer
- BIt extended state authority to all offerings
- CIt created uniform federal securities rules that replaced the USA
- DIt established the SEC as the only regulatory body for all securities
Explanation
Why A — It limited states’ authority to require registration of federally covered securities
NSMIA preempts state registration of many federally covered securities (USA Section 18), but states retain authority over non-covered securities. It did not extend state authority (B), replace the USA (C), or make the SEC the sole regulator (D).
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