Series 63 practice questionhardJurisdiction Over IARs
Which statement best describes state regulatory authority over investment adviser representatives (IARs) of federal covered advisers?
- AStates have no authority over IARs of federal covered advisers
- BStates may require IARs with a place of business in the state to register✓ Correct answer
- CIARs must register with the SEC only
- DIARs only register in the adviser's home state
Explanation
Why B — States may require IARs with a place of business in the state to register
State administrators may require registration of IARs of federal covered advisers if the IAR has a place of business in the state (USA Sec. 404). SEC does not register IARs; home state rule is not accurate.
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