Series 63 practice questionmediumInstitutional Client Definition
Under the USA, which of the following is generally NOT considered an institutional client for purposes of an IA exemption?
- AAn individual with $1 million in assets.✓ Correct answer
- BA bank.
- CA registered investment company.
- DAn insurance company.
Explanation
Why A — An individual with $1 million in assets.
High-net-worth individuals are not defined as institutional clients under the USA. Banks, insurance companies, and registered investment companies are included in the institutional definition (Section 401(e)).
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