Series 63 practice questioneasyAUM Threshold
An investment adviser with $120 million in assets under management must register with which regulatory body?
- AState securities administrator only
- BSecurities and Exchange Commission (SEC)✓ Correct answer
- CBoth state administrator and SEC
- DNeither SEC nor state administrator
Explanation
Why B — Securities and Exchange Commission (SEC)
Advisers with $100 million or more in AUM are required to register with the SEC and are considered federal covered advisers (USA Sec. 403; Dodd-Frank updates). Under $100 million, state registration may be required. Dual registration is not permitted.
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