Free NASAA Series 63 (Uniform Securities Agent State Law Examination) Regulation of Investment Adviser Representatives Practice Questions
Regulation of investment adviser representatives on the NASAA Series 63 exam covers registration and licensing requirements, exemptions, termination procedures, and the distinction between state and federal registration.
Sample Questions
Question 1
Easy
Under the Uniform Securities Act, which of the following best describes an investment adviser representative (IAR)?
Solution
A is correct. The Uniform Securities Act defines an IAR as a partner, officer, director, or other individual associated with an investment adviser who makes recommendations or otherwise gives investment advice, manages accounts or portfolios, determines which recommendations should be made, solicits advisory services, or supervises employees who perform those functions.
Question 2
Medium
Under the Uniform Securities Act, all of the following statements about the definition of an investment adviser representative are accurate EXCEPT:
Solution
A is correct. The definition of an investment adviser representative excludes individuals whose functions are solely clerical or ministerial; such a person is not within the definition and is not required to register. The remaining statements describe individuals who give advice, make recommendations, solicit clients, or exercise discretion—each of which is captured by the IAR definition.
Question 3
Hard
Under the Uniform Securities Act, all of the following individuals are required to register as an investment adviser representative in State B EXCEPT:
Solution
D is correct. For an individual associated with a federal covered adviser, the trigger for state IAR registration is maintaining a place of business in that state. An IAR of a federal covered adviser who has no place of business in State B is not required to register there, even though some retail clients reside in the state. The other three individuals each have a place of business in State B (or work for a state-registered adviser based there) and must register.