Series 63 practice questioneasyIntrastate Advisers
Which characteristic makes an investment adviser eligible for the INTRASTATE adviser exemption under the USA?
- AAll clients are residents of the same state as the adviser's principal office.✓ Correct answer
- BThe adviser has no more than five clients in the state.
- CThe adviser only advises non-profit organizations.
- DThe adviser is also a broker-dealer.
Explanation
Why A — All clients are residents of the same state as the adviser's principal office.
The intrastate exemption applies to advisers whose only clients are residents of one state and who do not provide advice on securities listed on a national securities exchange (Section 403(b)(3)).
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