Series 63 practice questioneasyTermination Notification for IARs of Federal Covered Advisers
If an IAR of a federal covered adviser is terminated, who must notify the Administrator under the USA?
- AThe investment adviser only
- BThe IAR only✓ Correct answer
- CBoth the IAR and the investment adviser
- DNeither party; notification is not required
Explanation
Why B — The IAR only
For IARs of federal covered advisers, the individual IAR (not the adviser firm) must promptly notify the Administrator upon termination (USA Section 404(b)).
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