Series 63 practice questionmediumUSA and NSMIA
Under the USA, which of the following is true of federal covered advisers?
- AThey are required to register with the state if they have a physical office there
- BThey are exempt from SEC registration if they operate in fewer than 5 states
- CThey are preempted from state registration but may have to make notice filings✓ Correct answer
- DThey must register with both the SEC and each state where they do business
Explanation
Why C — They are preempted from state registration but may have to make notice filings
Federal covered advisers are preempted from state registration, but states may require notice filings and fees (USA Sec. 405, NSMIA). A and D are incorrect; B misstates the rules for SEC registration.
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 notice filing for a federal covered adviser typically requires submission of:
- Which situation would most likely require a federal covered adviser to make a notice filing in State Y?
- Which of the following actions may a state administrator NOT take against a federal covered adviser?
- A federal covered adviser registered with the SEC must notice file with a state when:
- Adviser LLC is currently state-registered and reports $105 million in regulatory assets under management. Which…
- Which of the following is NOT considered a federal covered adviser under the USA?
- An investment adviser manages a mutual fund registered under the Investment Company Act of 1940. Under the USA, the…
- Who has jurisdiction to enforce anti-fraud provisions against a federal covered adviser doing business in a state?