To transact business as an investment adviser representative in a state, an individual must generally be registered as a representative of an investment adviser and satisfy the applicable qualification requirement, such as passing the appropriate NASAA examination. The Series 65 or Series 66 may satisfy the IAR exam requirement.

Why the Other Answers Are Incorrect

The Series 63 is an agent exam and does not, by itself, qualify someone to act as an investment adviser representative.

There is no general requirement that the IAR maintain a physical office in the state.

FINRA does not register individuals as investment adviser representatives. IAR registration is handled through state securities authoritie

To transact business in a state as an investment adviser representative, a person must generally be registered as a representative of an investment adviser and satisfy the applicable IAR qualification requirement. The appropriate NASAA examination is typically the Series 65 or Series 66.

Why the Other Answers Are Incorrect

Employment with a bank does not, by itself, qualify a person to act as an investment adviser representative.

Registration as a broker-dealer agent and passing the Series 63 do not make someone an investment adviser representative.

FINRA does not provide the IAR qualification exam. The relevant qualification exams are NASAA exams.

An individual who represents a federal covered investment adviser and has a place of business in a state must generally register as an investment adviser representative in that state. Because the representative will work from the firm’s office in State N, he has a place of business there and must comply with the state’s IAR registration requirements, including paying any required registration fees.

Why the Other Answers Are Incorrect

Notice filing applies to the federal covered investment adviser, not the individual investment adviser representative.

Working from an advisory branch office does not require the individual to register as a broker-dealer.

An individual already qualified as an IAR generally does not have to retake the examination simply because he is registering in another state.

Under the Uniform Securities Act, individuals associated with an investment adviser may be investment adviser representatives if they provide securities advice, manage client accounts or portfolios, determine securities recommendations, or supervise persons who perform those activities. This includes partners, officers, and directors who perform those functions.

Why the Other Answers Are Incorrect

Any answer that excludes one of the listed individuals is incomplete. Supervising advisory personnel and developing securities recommendations can cause a person to be treated as an investment adviser representative, even if that person does not personally sell advisory services to the public.

A federal covered investment adviser registers with the SEC rather than with the states. However, individuals associated with that adviser may still have to register at the state level as investment adviser representatives. This includes individuals who solicit advisory business if they have a place of business in the state.

Why the Other Answers Are Incorrect

Not every employee of a federal covered adviser is required to register. Registration depends on the individual’s activities and place of business.

A state Administrator generally cannot require the federal covered adviser itself to register as a state investment adviser.

Soliciting advisory clients does not require registration as a broker-dealer agent unless the individual is also acting in that broker-dealer capacity.

A state generally has registration authority over an investment adviser representative of a federal covered adviser only when the representative has a place of business in that state. Conducting public investment seminars in a state is treated as having a place of business there, so Ethan would generally have to register in State R.

Why the Other Answers Are Incorrect

Serving institutional clients located in the state does not, by itself, create a registration requirement for an IAR of a federal covered adviser when the IAR has no place of business in the state.

Owning a vacation property in the state is not the same as maintaining a place of business there.

The adviser’s office in the state does not automatically require Ethan to register there unless Ethan personally has a place of business or conducts advisory business from that state.

Passing the required examination does not, by itself, allow an individual to transact business as an investment adviser representative or receive asset-based advisory compensation. The individual must be properly registered as an investment adviser representative. Once registration is effective, the Administrator notifies the employing firm, and the firm’s appropriate supervisory person may notify the individual that the registration has been granted.

Why the Other Answers Are Incorrect

Passing the exam is only one requirement. Registration must also be effective.

The SEC does not grant state investment adviser representative registration.

A supervisor’s judgement about experience does not replace state registration.

Under the Uniform Securities Act, the definition of investment adviser representative includes individuals who solicit advisory business on behalf of an investment adviser. Therefore, persons hired to find or solicit new advisory clients generally must be registered as investment adviser representatives.

Why the Other Answers Are Incorrect

The individuals are working on behalf of an investment adviser, so they generally register as investment adviser representatives, not as separate investment advisers.

Passing an examination alone does not permit them to solicit. Their IAR registration must be effective.

Soliciting advisory clients is not prohibited when done by properly registered persons and in compliance with applicable rules.

State Administrators may require investment adviser representatives to meet qualification standards, including passing the appropriate examination. This is part of the state’s authority over state-registered investment advisers and their representatives.

Why the Other Answers Are Incorrect

Investment adviser representatives are not generally required to file personal financial statements.

A consent to service of process is generally filed with the initial registration and does not need to be renewed annually.

A representative making calls into another state may or may not have to register there, depending on factors such as the type of client, number of contacts, and whether the representative has a place of business in that state.

An investment adviser representative includes an individual associated with an investment adviser who gives securities advice, manages client accounts, determines securities recommendations, solicits advisory clients, or supervises persons who perform those activities. A supervisor of advisory personnel is an IAR. An employee of a federal covered adviser who has a place of business in the state and provides advisory services is also generally treated as an IAR.

Why the Other Answers Are Incorrect

Clerical or administrative employees are excluded from the definition when they do not provide advice or perform other advisory functions.

A broker-dealer agent who sells securities only on a commission basis is acting as an agent, not as an investment adviser representative, unless that person is also associated with an investment adviser and performs advisory functions.