Series 63 practice questionmediumExemptions – Number of Clients
Under the USA, an investment adviser with no place of business in State A is exempt from registration if the adviser's only clients in State A are:
- AOther investment advisers, broker-dealers, or institutional clients.✓ Correct answer
- BNo more than five non-institutional clients.
- COnly accredited investors.
- DNo more than 15 clients in any 12-month period.
Explanation
Why A — Other investment advisers, broker-dealers, or institutional clients.
The USA (Section 403(b)(2)) exempts advisers with no office in State A whose only clients there are institutions such as investment advisers, broker-dealers, or other institutional investors.
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
- A newsletter publisher bases advice on the specific securities positions of each subscriber. Under the USA, which best…
- An adviser located in State Z provides advice to 12 clients, all residents of State Z, and 1 client who just moved to…
- Which of the following may a state require of a federal covered adviser under the USA?
- Which of the following scenarios would NOT qualify for the LATE exclusion under the USA?
- Under the USA, which of the following is generally NOT considered an institutional client for purposes of an IA…
- A broker-dealer in State Y charges an annual wrap fee for providing investment advice and trade execution to retail…
- Which of the following broker-dealer activities would require registration as an investment adviser under the USA?
- An adviser whose only clients are insurance companies is: