An investment adviser representative (IAR) for a state-registered firm has recently moved their principal place of business from State X to State Y. The IAR has clients in both states. According to the Uniform Securities Act, what is the IAR's primary registration obligation?
- AThe IAR must register in State Y and maintain registration in State X if they still have clients there.
- BThe IAR must register in State Y, and their former firm must notify State X of the change.
- CThe IAR must register in State X and State Y within 30 days of the move.
- DThe IAR must register in State Y and withdraw registration from State X.
Show answer & explanationAnswer & explanation
Correct answer: D. The IAR must register in State Y and withdraw registration from State X.
Under the Uniform Securities Act, an IAR's registration is tied to their principal place of business. When an IAR moves their principal office from one state to another, they must register in the new state (State Y) and withdraw their registration from the former state (State X). The employing investment adviser firm is responsible for making these filings.
Why the other options are wrong
- A. This is incorrect. IAR registration is based on the principal place of business, not client location in other states.
- B. This is incorrect. While the firm handles the filings, the IAR's primary obligation is to be registered in the correct state and deregistered from the old one.
- C. This is incorrect. Registration is only required in the state of the principal place of business.
IAR Registration (Principal Place of Business)
An Investment Adviser Representative (IAR) must register in any state where they maintain a principal place of business. If they move their principal place of business to a new state, they must register in the new state and withdraw their registration from the previous state.
- IAR registration is state-specific.
- Tied to the IAR's principal place of business.
- Employing IA firm typically makes the filings.
- Prompt updating is required for interstate moves.
Memory trick: Where your desk sits, that's where your license fits!