Series 63 practice questionmediumState Authority Over Federal Covered Advisers
Which authority does a state Administrator retain over a federal covered investment adviser doing business in the state?
- AAuthority to revoke the adviser's SEC registration
- BAuthority to investigate and enforce state antifraud laws✓ Correct answer
- CAuthority to require the adviser to register again at the state level
- DAuthority to impose state-specific capital requirements
Explanation
Why B — Authority to investigate and enforce state antifraud laws
Federal law preempts state investment-adviser registration, qualification, and financial requirements for federal covered advisers. States nevertheless retain authority to investigate and bring enforcement actions for fraud or deceit against persons operating in the state.
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 of the following is NOT a federal covered adviser as defined by the USA?
- A state Administrator discovers that a federal covered adviser's notice filing contains a material misstatement…
- Which statement best describes state regulatory authority over investment adviser representatives (IARs) of federal…
- A federal covered adviser with $250 million AUM and no place of business in State X solicits and enters into contracts…
- Under the Uniform Securities Act, which of the following best describes the minimum period during which…
- An investment adviser’s AUM rises from $90 million to $105 million. What is the adviser’s registration status under the…
- An investment adviser with custody of client funds must deliver a balance sheet to clients how often under the USA?
- Which scenario would exempt a federal covered adviser from a notice filing in a state?