Series 63 practice questioneasyTermination Procedures for IARs
Under the USA, who is responsible for notifying the Administrator when an investment adviser representative (IAR) terminates employment with a STATE-registered adviser?
- AThe IAR only
- BThe investment adviser only✓ Correct answer
- CBoth the investment adviser and the IAR
- DThe Administrator only
Explanation
Why B — The investment adviser only
When an IAR of a state-registered adviser is terminated, the adviser must promptly notify the Administrator. The IAR is not required to do so unless employed by a federal covered adviser (USA Section 404(b)).
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