Series 63 practice questioneasyNSMIA Preemption
Under the National Securities Markets Improvement Act (NSMIA), which of the following is NOT subject to state registration requirements?
- AMutual fund shares✓ Correct answer
- BUnlisted corporate bonds
- CNonprofit organization securities
- DLimited partnership interests offered in a single state
Explanation
Why A — Mutual fund shares
Mutual fund shares (investment company securities registered under the Investment Company Act of 1940) are federal covered securities, preempting state registration. The others may still be subject to state requirements unless exempt.
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