Series 63 practice questioneasyIA Exemptions and Exclusions — Adviser to Institutions
Which of the following persons is EXEMPT from registration as an investment adviser under the Uniform Securities Act?
- AAn adviser who has an office in the state and serves both individuals and institutions
- BAn adviser whose only clients are insurance companies✓ Correct answer
- CAn adviser who solicits individual retail clients in multiple states
- DAn adviser who provides advice about municipal bonds to individuals
Explanation
Why B — An adviser whose only clients are insurance companies
Under the USA, an investment adviser whose only clients are institutions such as insurance companies is exempt from registration (Section 403(b)(3)).
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