Mary Ellen represents a federal covered investment adviser in State A, with her main office there. Once a month, as she passes through State B on her way to work, she meets with 4 financial planning clients at a diner to discuss investing strategies. Therefore
A. Mary Ellen need not register in State B due to the number of clients there
B. Mary Ellen must register in State B
C. Mary Ellen need not register in State B as she has no place of business there
D. Mary Ellen may register with either State A or State B
EXPLANATION: Mary Ellen does have a place of business in State B, so the number of clients is irrelevant.
ANSWER: B
Great question to ask. I had to read it again and again because my first inclination was to go with C. However, getting deeper into the question it states 4 financial planning clients (which in my mind I was switching clients to colleagues). As you can see I fall into the bad habit of not reading the question CAREFULLY. Anyhow, great question to ask and help me with my struggle of trying to whiz past the question.
ReplyDeleteyes, a "place of business" is not necessarily an "office." in fact, if she "holds herself out" as being avaiable to meet at a particular location, she has a "place of business" in that state.
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