Exemptions - Investment advisers that do not need to register with the state. These advisers have clients in the state that are non-public. The clients may solely consist of:
The key to this is that the clients are not the general public, so protection is not needed.
There is also an exemption known as the "De Minimis" Exemption in which advisers with fewer than 6 clients in a state are exempt from registering. This is because there are so few clients that the business in the state is considered minimal.
Exclusions from the "investment adviser" definition:
The information listed above is adapted from a number of sources, but mostly from a Series 63 study program from http://www.passperfect.com/ Please visit PassPerfect for more information about their program. The Series 63 exam has been developed by the NASAA, and you can visit their website HERE. Neither PassPerfect nor the NASAA have reviewed the material presented here for completeness or accuracy. Please visit them to find more information about their programs and exams.
Investment Adviser, Series 63, Exceptions, Exemptions