Series 63 practice questionmediumRegistration Requirements for IAs — Successor Firms
If an investment adviser organized as a partnership dissolves and forms a new LLC that will continue the advisory business, what must the new LLC do to continue transacting business in the state?
- AThe new LLC must file a new application for registration, but may do so without paying a new filing fee for the current year.✓ Correct answer
- BThe new LLC can operate without registration for 90 days.
- CThe new LLC may rely on the old partnership's registration until the next renewal.
- DThe new LLC must file a new application and pay a new filing fee.
Explanation
Why A — The new LLC must file a new application for registration, but may do so without paying a new filing fee for the current year.
Under the USA, a successor firm may file a new application for registration for the unexpired portion of the year without paying an additional filing fee. (USA § 406(f))
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