Series 63 practice questioneasyFederal Covered Advisers Definition
Under the Uniform Securities Act, which of the following best describes a federal covered adviser?
- AAn adviser registered only with state regulators
- BAn adviser registered with the SEC under the Investment Advisers Act of 1940✓ Correct answer
- CAn adviser that only manages mutual funds exempt from SEC registration
- DAn agent of a broker-dealer providing investment advice
Explanation
Why B — An adviser registered with the SEC under the Investment Advisers Act of 1940
Federal covered advisers are those registered with the SEC under the Investment Advisers Act of 1940 (USA Sec. 102(6)). Answers A and D describe advisers or agents not qualifying as federal covered advisers, and C is incorrect because managing mutual funds does not automatically qualify an adviser as federal covered unless they're registered with the SEC.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 1,051+ Series 63 questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Spot an error in this question or explanation? Tell us — we fix these fast.
Related Regulation of Investment Advisers questions
- Which federal law primarily preempts state registration of federal covered advisers?
- An IA located in State G has no place of business in State H and only advises 2 banks and 4 individuals in State H.…
- An investment adviser with $120 million in assets under management must register with which regulatory body?
- A private fund adviser with $120 million AUM has only qualified purchasers as clients in State F. Under the USA, what…
- Which of the following is a requirement for a federal covered adviser doing business in a state?
- Which of the following persons giving advice would NOT be required to register as an IA under the USA?
- A federal covered adviser must generally make a notice filing with a state if it:
- A publisher sends a weekly newsletter with general market commentary but offers a premium service with tailored…