Which describes an exemption from registration under federal law for Intrastate Advisors?

• A. Intrastate Advisors whose clients are residents of the state and who do not give advice on securities listed on national exchanges
• B. Advisors to all corporate clients regardless of domicile
• C. Any advisor with assets under management over $1 billion
• D. Advisors to government securities only

Answer: (A)

The exemption from federal registration for Intrastate Advisors hinges on two conditions: all clients must be residents of the same state, and the advisor must not provide advice on securities listed on national exchanges. When both parts are met, the adviser can rely on state regulation instead of federal registration.

The described scenario fits these conditions exactly: the clients are residents of the state, and the advisor does not give advice on securities listed on national exchanges, so it qualifies for the intrastate exemption.

The other options don’t satisfy the key requirement of client residency within a single state, or introduce factors that don’t establish the specific intrastate exemption. For example, serving all corporate clients regardless of domicile could involve clients outside the state; relying on a high asset threshold isn’t how federal exemptions are determined; and focusing on government securities alone doesn’t address the necessary state-residency condition.