🏦LTB
← Series 63: Regulation of Investment Advisers
Series 63 practice questionmediumRegistration Requirements for IAs — State vs. Federal Registration

In a remedial practice session, the fact pattern is framed this way. Assume the administrator is testing the cleanest state-law answer. Which of the following advisers must register with the state administrator under the Uniform Securities Act?

  1. AAn adviser with $70 million in assets under management, an office in the state, and 10 retail clients in the state.✓ Correct answer
  2. BAn adviser with $120 million in assets under management and an office in the state.
  3. CAn adviser registered with the SEC.
  4. DAn adviser with $90 million in assets under management and no office in the state, but five retail clients in the state.
Explanation

Why A — An adviser with $70 million in assets under management, an office in the state, and 10 retail clients in the state.

Under the USA and federal law, advisers with less than $100 million in AUM generally register at the state level unless otherwise exempt. An adviser with $70 million AUM, an office, and retail clients must register with the state. (USA § 403(a)) This version tests the same concept with a different fact pattern wrapper.

Turn it into reps

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.

Practice Series 63 freeSeries 63 exam guide
Related Regulation of Investment Advisers questions