Laws & RegulationsQuestion 7 of 100
A federal covered investment adviser with clients in five states is generally subject to registration and oversight primarily by:
a.The SEC, though states retain antifraud authority
b.Each state in which it has a single client
c.Only the state of its principal office
d.No regulator, because it is federal covered
Explanation
A federal covered adviser registers with the SEC rather than with individual states. However, states retain antifraud jurisdiction and can require notice filings and fees. This preserves state enforcement power while avoiding duplicative registration.
Law Reference: Investment Advisers Act of 1940Practice all 100 questions free — no signup required.
Related questions on this topic
- An investment adviser representative learns material nonpublic information about a public company from a client who is a corporate insider. The IAR then buys the stock for personal gain. This conduct is best described as:
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- The state Administrator may deny, suspend, or revoke the registration of an agent if the agent:
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