NASAA Series 63Regulation of Investment Advisers and IARsHard
An investment adviser files a Form ADV-W to voluntarily withdraw its state registration on March 1. No proceeding is instituted against the adviser by the Administrator. When does the withdrawal become effective under the Uniform Securities Act?
- AOnly after the Administrator issues written approval of the withdrawal
- BOne year after the filing, to allow time for client transition
- C30 days after the filing, unless the Administrator institutes a revocation or suspension proceeding within that period
- DImmediately upon filing, on March 1
Show answer & explanationAnswer & explanation
Correct answer: C. 30 days after the filing, unless the Administrator institutes a revocation or suspension proceeding within that period
Under the Uniform Securities Act, a withdrawal from registration becomes effective 30 days after the filing of the withdrawal application, provided no revocation or suspension proceeding is pending or instituted during that period. This mirrors the withdrawal provisions applicable to agents and broker-dealers.
Why the other options are wrong
- A. No affirmative approval from the Administrator is required; the withdrawal becomes effective automatically after 30 days absent action.
- B. A one-year delay is not part of the statutory withdrawal timeline.
- D. Withdrawal is not immediate; a 30-day waiting period applies.
Withdrawal of Registration Timing
A registrant's withdrawal from registration (via Form ADV-W or similar) becomes effective 30 days after filing, unless the Administrator institutes a proceeding during that period.
- 30-day waiting period is standard under the USA
- Administrator retains jurisdiction to act during that window
- Applies similarly to agents, broker-dealers, and investment advisers
Memory trick: Thirty days to walk out the door.