Series 63 practice questionmediumTransition Rules
An investment adviser’s AUM rises from $90 million to $105 million. What is the adviser’s registration status under the transition rules?
- AImmediately upon reaching $100 million
- BWithin 30 days
- CIt may remain state-registered for now and reassess at its annual updating amendment; SEC registration becomes mandatory at $110 million or more✓ Correct answer
- DOnly if requested by a client
Explanation
Why C — It may remain state-registered for now and reassess at its annual updating amendment; SEC registration becomes mandatory at $110 million or more
An adviser in the $100 million to less-than-$110 million buffer zone is not forced to switch to SEC registration immediately. It may generally remain state-registered and reassess on its annual updating amendment; SEC registration becomes mandatory when regulatory AUM is at least $110 million on that annual update.
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