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← Series 63: Regulation of Investment Advisers
Series 63 practice questionhardFederal covered adviser: pension consultant nuances

A state-eligible pension consultant advises plans with $190 million in assets and has no other basis for SEC registration. What is the effect of failing to meet the $200 million threshold in Rule 203A-2(a)?

  1. AThe consultant is automatically required to register with the SEC
  2. BThe consultant cannot use that exemption to elect SEC registration and generally remains subject to state registration✓ Correct answer
  3. CThe consultant is exempt from both SEC and state registration
  4. DThe consultant must register simultaneously with the SEC and each state
Explanation

Why B — The consultant cannot use that exemption to elect SEC registration and generally remains subject to state registration

Rule 203A-2(a) permits qualifying pension consultants to register with the SEC. Failing its asset threshold removes that optional federal-registration basis; it does not itself require SEC registration.

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