Series 63 practice questionmediumDual Registration
May a federal covered adviser be required to register with both the SEC and state securities administrators?
- AYes, if it has a place of business in the state
- BYes, if it has more than 5 clients in the state
- CNo, dual registration is prohibited under NSMIA✓ Correct answer
- DYes, if the state administrator requests it
Explanation
Why C — No, dual registration is prohibited under NSMIA
NSMIA preempts state registration of a federal covered investment adviser. A state may require a notice filing and may require registration of qualifying IARs, but it may not require the advisory firm to hold simultaneous SEC and state adviser registrations.
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