Series 63 practice questionmediumInvestment Adviser Representatives — Definition and State Registration
Janet works for an SEC-registered investment adviser and provides investment advice to several clients in State X, though she works remotely from State Y. According to the Uniform Securities Act, under which circumstance must Janet register as an investment adviser representative (IAR) in State X?
- AJanet must register in State X if she has a physical office in State X, regardless of client count.✓ Correct answer
- BJanet must register in State X only if her principal office is in State X.
- CJanet must register in State X if she has more than five non-institutional clients in State X.
- DJanet is exempt from registration in State X because her firm is SEC-registered.
Explanation
Why A — Janet must register in State X if she has a physical office in State X, regardless of client count.
An investment adviser representative of a federal covered adviser may be required to register in a state when the representative has a place of business in that state. A physical office in State X therefore triggers registration there regardless of client count.
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