Series 63 practice questioneasyState Registration Exemptions
Which of the following is NOT required to register as an investment adviser in a state under the Uniform Securities Act?
- AA firm with no place of business in the state and only institutional clients in that state✓ Correct answer
- BA sole proprietor providing investment advice to local residents for a fee
- CA firm with no place of business in the state but advising five retail clients in that state during the past 12 months
- DA firm with an office in the state and retail clients
Explanation
Why A — A firm with no place of business in the state and only institutional clients in that state
The USA provides an exemption from state registration for investment advisers with no office in the state who only deal with institutional clients (USA Section 403(b)(2)). Advisers with an office or those advising retail clients must register unless another exemption applies.
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