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Series 63: Regulation of Investment Advisers
Series 63 practice questionmediumInvestment Adviser Representatives — State Jurisdiction

In a remedial practice session, the fact pattern is framed this way. Read it as a Uniform Securities Act issue rather than a federal-law issue. A registered investment adviser (state-registered) located in State Z employs Tom, who provides advice only to clients in State Y, where the firm is not registered. Under the USA, in which state must Tom be registered as an investment adviser representative?

  1. AOnly in State Y.
  2. BIn both State Z and State Y.✓ Correct answer
  3. CRegistration is not required in either state.
  4. DOnly in State Z.
Explanation

Why BIn both State Z and State Y.

USA Section 402(c) requires IARs of state-registered advisers to register in any state where they have a place of business or where they offer advisory services to clients. The governing USA principle is unchanged even though the framing is different.

Turn it into reps

Reading one answer is not the same as being ready

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