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NASAA Series 63 Uniform Securities Agent State Law Exam

2. Regulation of Investment Adviser Representatives: practice questions

Our Series 63 bank has 12 questions on this topic. Here are 5 of them with answers; the full mock exam draws from every topic, like the real one.

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Question 1

An investment adviser representative leaves a state-registered investment adviser. Under the Uniform Securities Act, who must promptly notify the Administrator?

  1. The representative's new employer only
  2. The investment adviser
  3. The representative's clients
  4. No one, because registration lapses on its own
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B. The investment adviser — Section 201(d): when a representative begins or ends employment, the investment adviser must promptly notify the Administrator in the case of a state-registered adviser.

Question 2

An investment adviser representative of a federal covered adviser stops working for it. Under the Uniform Securities Act, who must notify the Administrator?

  1. The investment adviser representative
  2. The SEC, through the Investment Adviser Registration Depository
  3. The federal covered adviser only
  4. The representative's former clients
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A. The investment adviser representative — Section 201(d) makes the representative responsible for notice in the case of a federal covered adviser (201(d)(ii)).

Question 3

Under the Uniform Securities Act, the Administrator's power to require an examination of applicants:

  1. Applies only to broker-dealers and their agents, not to advisory personnel of any kind
  2. Must use only a written exam the state writes itself
  3. May use an exam developed or approved by an organization of securities administrators
  4. Cannot be waived for any person
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C. May use an exam developed or approved by an organization of securities administrators — Section 204(b)(6): the Administrator may by rule require an exam, written or oral or both, including one developed or approved by an organization of securities administrators, and may waive it.

Question 4

Under the Uniform Securities Act, an individual who works for a federal covered adviser must register in a state as an investment adviser representative when the individual:

  1. Has any client resident in that state
  2. Earns more than half of their income from advice
  3. Has a place of business located in that state
  4. Manages more than $25 million for the firm
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C. Has a place of business located in that state — Sections 201(d)(ii) and 401(g): a federal covered adviser may not employ an investment adviser representative who has a place of business in the state unless that representative is registered there or exempt.

Question 5

Which employee of a state-registered investment adviser is an investment adviser representative under the Uniform Securities Act?

  1. A salesperson who solicits clients for the firm's advisory services
  2. A receptionist who books client meetings and greets visitors
  3. A technician who maintains the firm's trading and reporting software
  4. A clerk who mails out account statements
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A. A salesperson who solicits clients for the firm's advisory services — Section 401(g): an investment adviser representative includes anyone who makes recommendations, manages accounts, decides what advice is given, solicits or sells advisory services, or supervises those who do.

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