Investment adviser and agent registration requirements and common exemptions under the Uniform Securities Act, tested on the Series 65 and 66 exams.
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- Which investment advisers must register at the state level under the Uniform Securities Act?
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Those with assets under management (AUM) of less than $25 million and not registered with the SEC, unless eligible for an exemption.- What is a federal covered adviser?
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An investment adviser required to register with the SEC rather than with individual states, typically with AUM of $25 million or more.- What exempts a small investment adviser from state registration?
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Managing less than $25 million in assets under management within the state and having fewer than 15 clients in the state.- May an intrastate investment adviser avoid state registration?
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Yes, if the adviser operates exclusively within one state, derives at least 80% of revenue from intrastate clients, and provides only intrastate advice.- What is the bank adviser exemption under the Uniform Securities Act?
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Banks and bank affiliates are generally exempt from investment adviser registration at the state level when advising on bank-supervised activities.- Are pension plan consultants required to register as state investment advisers?
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No, advisers whose clients consist exclusively of pension plans are exempt from state registration.- What is the venture capital adviser exemption?
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Investment advisers whose sole business is advising venture capital funds are exempt from registration if they meet specific criteria regarding asset custody and client sophistication.- Who qualifies for the family office investment adviser exemption?
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Firms advising exclusively on the financial affairs of family members and entities in which family members own a significant interest.- Must wrap fee account advisers register separately under state law?
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No, advisers managing wrap fee accounts are exempt from certain registration requirements, though they may need notice filing in some states.- What is required for notice filing by federal covered advisers in a state?
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Federal covered advisers must file a notice, consent to service of process, and a copy of their Form ADV with the state, even though they are not state-registered.- Must an agent register with the state in which they work?
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Yes, agents (representatives) must register with the state where they conduct business, either directly or through a broker-dealer.- What is an agent under the Uniform Securities Act?
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A person who represents a broker-dealer or issuer in effecting or attempting to effect transactions in securities.- Are broker-dealers acting in a principal capacity required to register as agents?
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No, broker-dealers do not need separate agent registration; only employees who solicit clients must register as agents.- What exempts certain persons from agent registration?
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Persons representing brokers or issuers only in certain transactions, such as isolated non-recurring transactions, and employees dealing only in exempt securities.- Must an agent representing only institutional clients register at the state level?
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No, agents whose clients consist exclusively of institutional investors such as banks and pension funds may be exempt from registration.
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