SERIES-63 practice question 9 of 35

MoeMoney Investment Advisers, LLC is registered in the state of Texas, and its three offices are all located in the greater Dallas-Fort Worth are a. Five of its clients-all individuals-have relocated to Colorado and all have indicated a desire to retain the services of MoeMoney. In order for this to be possible,

Answer options

A: MoeMoney will need to apply for and be granted registration as an investment adviser in the state of Colorado.

B: each client will have to write a letter to the Administrator of the state of Colorado on MoeMoney’s behalf.

C: MoeMoney will need to apply for and be granted registration as an investment adviser representative in the state of Colorado.

D: Neither MoeMoney nor its clients need do anything. Correct answer

Correct Answer:

D. Neither MoeMoney nor its clients need do anything.

Explanation

In order for MoeMoney to continue servicing its five individual clients who have relocated to Colorado, neither MoeMoney nor its clients need to do anything. The National Securities Markets Improvement Act of 1996 (NSMIA) established a “deminimis” exemption for investment advisers if they have no office in a state and do business with “no more than five non-institutional clients” during a one-year time frame.

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