A:

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.



RELATED FAQS
  1. If an issuer wishes to register a security in the state ...

    The correct answer is a. Registration by coordination is permitted when the issuer has filed a registration application with ... Read Answer >>
  2. How long is the validity period for a Series 63 exam if I have not been registered?

    Find out how registration begins using Series 63 results and how long scores are valid without registration. Learn more about ... Read Answer >>
  3. The de Minimis clause for investment advisers means:

    A. An investment adviser must register with the state if it holds less than $25 million in assets.B. An investment adviser ... Read Answer >>
  4. A corporation, which does virtually all of its business in the state where it has ...

    The correct answer is d) Rule 147 is a rule that allows for intrastate offerings to be exempt from the requirements of full ... Read Answer >>
  5. Are hedge funds registered with the Securities and Exchange Commission (SEC)?

    Learn the conditions that require hedge fund advisors to register with the U.S. Securities and Exchange Commission. Read Answer >>
  6. How do I register for the CFA program for the first time?

    CFA Institute provides prospective CFA candidates with a couple registration options.1) Online Registration: This is the ... Read Answer >>
Related Articles
  1. Financial Advisor

    SEC on Advisor Performance Claims: 'Show Your Work'

    The SEC will now require advisors to keep records of any documentation that is distributed to clients that contains performance numbers of any kind.
  2. Financial Advisor

    What Are the Chances You'll Get a Visit From the SEC?

    If you are an RIA registered with the SEC, the odds are fairly low that you will receive a visit from one of its examiners this year.
  3. Investing

    How To Start a Hedge Fund In the United States

    A general overview of how to start a hedge fund firm in the United States, including complying with state and federal regulations.
  4. Financial Advisor

    Address These Concerns to Avoid SEC Scrutiny

    These are the key issues that the SEC is currently focusing on that advisors need to be aware of to stay compliant with regulations.
  5. Investing

    Series 63 Exam State Securities Administrator

    Learn what you need to know about the state securities administrator to pass the Series 63 exam.
  6. Financial Advisor

    Advisors Face More SEC Reporting Requirements

    The SEC has mandated that investment advisors provide more disclosure on separately managed accounts and performance numbers used in advertising.
  7. Financial Advisor

    What Triggers an SEC Audit for Financial Advisors?

    Advisors looking to avoid an SEC audit should pay heed to this list of what may catch the regulator's attention.
  8. Managing Wealth

    Trade Name Vs. Trademark: Know the Difference

    Understand the differences between a trade name and a trademark, the different functions they serve and registration considerations for business owners.
  9. Insights

    Understanding the SEC

    The SEC's triple mandate of investor protection, maintenance of orderly markets and facilitation of capital formation makes it a vital player in capital markets.
  10. Financial Advisor

    Top SEC Exam Hacks for Financial Advisors

    These five tips will help financial advisors pass muster when the SEC comes knocking.
RELATED TERMS
  1. SEC Form SB-1

    A filing with the Securities and Exchange Commission (SEC) that ...
  2. Effective Date

    The date, declared by the Securities & Exchange Commission (SEC), ...
  3. Piggyback Registration Rights

    A form of registration rights that grants the investor the right ...
  4. Intrastate Offering

    In the United States, a securities offering that can only be ...
  5. SEC Form 24F-1

    A filing with the Securities and Exchange Commission (SEC) that ...
  6. SEC Form SB-2

    A filing with the Securities and Exchange Commission (SEC) required ...
Hot Definitions
  1. Conflict Theory

    A theory propounded by Karl Marx that claims society is in a state of perpetual conflict due to competition for limited resources. ...
  2. Inflation-Linked Savings Bonds (I Bonds)

    U.S. government-issued debt securities similar to regular savings bonds, except they offer an investor inflationary protection, ...
  3. Peak Globalization

    Peak globalization is a theoretical point at which the trend towards more integrated world economies reverses or halts.
  4. Phishing

    A method of identity theft carried out through the creation of a website that seems to represent a legitimate company. The ...
  5. Insurance

    A contract (policy) in which an individual or entity receives financial protection or reimbursement against losses from an ...
  6. Earnings Per Share - EPS

    The portion of a company's profit allocated to each outstanding share of common stock. Earnings per share serves as an indicator ...
Trading Center