Series 63 practice questionmediumSuccessor registration after merger
A federally covered IA merges with a state-registered IA. The successor firm’s AUM is $90 million. What is the CORRECT registration path post-merger?
- ARemain federally covered
- BSwitch to state registration✓ Correct answer
- CRegister with both SEC and states
- DNo registration required until AUM exceeds $100 million
Explanation
Why B — Switch to state registration
With AUM below $100 million, the successor can’t remain federally covered and must register with states (per USA 203A). Dual registration isn’t allowed. Option D is incorrect; registration with the states is required unless another exemption applies.
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