Series 63 practice questionmediumThreshold Triggers
Adviser LLC is currently state-registered and reports $105 million in regulatory assets under management. Which statement BEST describes its registration options in the $100 million to $110 million buffer zone?
- AIt must immediately register with the SEC
- BIt must remain state-registered and may never apply to the SEC
- CIt may generally remain state-registered or apply for SEC registration✓ Correct answer
- DIt must be registered simultaneously with the SEC and every state
Explanation
Why C — It may generally remain state-registered or apply for SEC registration
An adviser in the $100 million to $110 million buffer zone is generally permitted, but not yet required, to register with the SEC. A state-registered adviser generally must transition when it reports at least $110 million on its annual updating amendment.
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