Series 63 practice questioneasyNSMIA Preemption
Which federal law primarily preempts state registration of federal covered advisers?
- AThe Securities Act of 1933
- BThe National Securities Markets Improvement Act of 1996 (NSMIA)✓ Correct answer
- CThe Securities Exchange Act of 1934
- DThe Investment Company Act of 1940
Explanation
Why B — The National Securities Markets Improvement Act of 1996 (NSMIA)
NSMIA preempts states from requiring registration of federal covered advisers (USA Sec. 403). The other acts do not specifically address adviser state preemption issues.
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