Series 63 practice questionhardFederal Covered Adviser Exclusion
Which of the following is NOT a federal covered adviser as defined by the USA?
- AAn adviser to a mutual fund
- BAn adviser with $150 million AUM and principal office in another country, but with U.S. clients
- CAn adviser with $95 million AUM and clients in 18 states✓ Correct answer
- DAn adviser required to register with the SEC solely because it is affiliated with a bank
Explanation
Why C — An adviser with $95 million AUM and clients in 18 states
An adviser with less than $100 million AUM is not federal covered, regardless of client location (USA Sec. 102(6)). The others are considered federal covered advisers.
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