RegistrationQuestion 18 of 100

An individual who advises clients on behalf of a federal covered investment adviser works out of the firm's branch office in State P. This individual:

a.Is exempt from state registration because the firm is federally covered
b.Must register with the SEC rather than with State P
c.Must register as an investment adviser representative in State P because he has a place of business there
d.Need not register anywhere as long as he has fewer than six clients

Explanation

Although the firm itself is federally covered and cannot be required to register with a state, individual representatives are registered at the state level. The trigger is having a place of business in the state, so a representative working from an in-state office must register there. The SEC does not register individual representatives, and the de minimis client count applies to advisory firms without a place of business, not to representatives with one.

Law Reference: Uniform Securities Act

Practice all 100 questions free — no signup required.

Related questions on this topic

Last reviewed: · editorial process

PrepPass Editorial Team · Verified against NASAA Series 63 — Uniform Securities Agent State Law Exam · How we review
Report