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← Series 63: Regulation of Investment Advisers
Series 63 practice questionmediumSwitching between state and SEC registration

An IA registered in three states increases its AUM from $95 million to $105 million. What is the earliest point it MUST switch to SEC registration?

  1. AImmediately upon reaching $100 million AUM
  2. BWithin 90 days after fiscal year-end if AUM is still above $100 million
  3. CAt the end of the quarter in which AUM exceeds $100 million
  4. DNot at $105 million; SEC registration becomes mandatory only if AUM is at least $110 million at the annual updating amendment✓ Correct answer
Explanation

Why D — Not at $105 million; SEC registration becomes mandatory only if AUM is at least $110 million at the annual updating amendment

An adviser with AUM between $100 million and $110 million is in the buffer zone and is not required to switch to SEC registration until it reports at least $110 million on its annual updating amendment.

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