Series 63 practice questioneasyExemptions for Institutional Clients
Which of the following clients would most likely make an investment adviser exempt from registration under state law?
- AA registered investment company (mutual fund)✓ Correct answer
- BA high-net-worth individual
- CA charitable trust
- DA retired doctor investing personal assets
Explanation
Why A — A registered investment company (mutual fund)
Advisers who only deal with institutional clients such as registered investment companies are often exempt from registration under the USA (Section 403(b)(6)). The other clients are not institutional for this purpose.
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
- According to the USA, which of the following publications would be EXCLUDED from the definition of an investment…
- Under the Uniform Securities Act (USA), which of the following entities is generally EXCLUDED from the definition of an…
- A CPA provides incidental investment advice while preparing a client’s tax return. Is the CPA required to register as…
- Which of the following individuals is NOT considered an IAR under the USA?
- Which characteristic makes an investment adviser eligible for the INTRASTATE adviser exemption under the USA?
- If an IAR changes employment from a state-registered to a federal covered adviser, what must occur under the USA?
- Under the USA, which of the following is NOT considered an investment adviser?
- Under the USA, which of the following individuals soliciting clients for an unaffiliated investment adviser must…