Series 63 practice questionmediumFederal covered adviser: exclusion vs exemption
Which of the following is LEAST likely to require registration in any state under the Uniform Securities Act?
- AA federal covered adviser with $250 million AUM✓ Correct answer
- BAn adviser with $70 million AUM, a principal office in State M, and no place of business elsewhere
- CAn adviser with $95 million AUM and offices in 2 states
- DA pension consultant to plans with $120 million in total assets
Explanation
Why A — A federal covered adviser with $250 million AUM
Federal covered advisers ($110M+) are preempted from state registration, though states may require notice filings. All others (B, C, D) do not meet federal covered status and would register with a 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
- An adviser with $105 million AUM at fiscal year-end subsequently declines to $98 million mid-year. According to the USA…
- All of the following advisers could qualify for the pension consultant exemption EXCEPT:
- A state-eligible pension consultant advises plans with $190 million in assets and has no other basis for SEC…
- A mid-sized adviser ($60 million AUM) with offices in 4 different states asks where to register. What is the most…
- An adviser reports $150 million AUM, but only $40 million is in actively managed accounts and $110 million is in…
- A state-registered investment adviser reports $112 million in regulatory assets under management on its annual Form ADV…
- Under current Form ADV Part 2 instructions, when must an adviser generally deliver annual brochure information to an…
- In calculating AUM for federal covered adviser status, which of the following must be EXCLUDED from the calculation?