Frequently Asked Question
Investment advisors must register with the SEC when their assets under management total what amount?
A. More than $20 million
B. More than $25 million
C. $25 million to $30 million
D. More than $30 million
Correct Answer: D
Firms with less than $25 million in assets under management generally register with the state or states in which they have a place of business and in which they have clients. Firms with assets between $25 million and $30 million may choose between state registration and SEC registration, but they are required to register with SEC when assets under management exceed $30 million.
Hint: The key to answering this question is to know that $25 million to $30 million is the gray zone with a choice between state registration and SEC registration.
B. More than $25 million
C. $25 million to $30 million
D. More than $30 million
Correct Answer: D
Firms with less than $25 million in assets under management generally register with the state or states in which they have a place of business and in which they have clients. Firms with assets between $25 million and $30 million may choose between state registration and SEC registration, but they are required to register with SEC when assets under management exceed $30 million.
Hint: The key to answering this question is to know that $25 million to $30 million is the gray zone with a choice between state registration and SEC registration.
by
Peter Cherewyk
Peter Cherewyk has worked in the financial field for over 10 years. He completed his Bachelor of Commerce from the University of Alberta, and is currently working towards a Chartered Financial Analyst designation. He enjoys hockey and hiking and the opportunity to teach others.
Free Annual Reports
