Series 63 practice questioneasyFederal/State Coordination — NSMIA
The National Securities Markets Improvement Act of 1996 (NSMIA) primarily affected state securities regulation by:
- AEliminating all state securities laws
- BTransferring all enforcement authority from states to the SEC
- CRequiring all securities to be registered at the state level
- DPreempting state registration requirements for certain categories of securities known as federal covered securities✓ Correct answer
Explanation
Why D — Preempting state registration requirements for certain categories of securities known as federal covered securities
NSMIA preempted state registration requirements for federal covered securities, which include securities listed on national exchanges, securities issued by registered investment companies, and certain offerings sold to qualified purchasers. However, NSMIA preserved state authority over antifraud enforcement and notice filing requirements.
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