Which sentence is irrelevant for investment advisers?

Answer:

A. the investment adviser must register with the state if it holds less than $25 million in assets.

B. the investment adviser must register with the state if it has less than $30 million in assets.

K. investment adviser must register with individual States, if he was in less than five States; otherwise, it must register with the sec.

D. the investment adviser is exempt from registration in the state if it has five or fewer clients during the 12-month period in the state where it has no physical address.

Correct answer: d
Section 403 of the Uniform securities Act, reads as follows: “a person without a place of business in this state if the person has had, during the preceding 12 months, not more than five clients who are residents of this state.” In addition, the review part of the law it is written: “in section 403(B)(2) consistent with the national securities markets Improvement Act of 1996, which prohibits the state from regulating an investment adviser that has no place of business in this state and had fewer than six clients were residents in the previous 12 months.” In any case, the law says five clients or less. Note: the exam may use the phrase “five or fewer”.

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