Series 63 practice questionmediumAUM calculation edge case
In calculating AUM for federal covered adviser status, which of the following must be EXCLUDED from the calculation?
- AAssets managed for out-of-state institutional clients
- BAssets managed without charging a fee
- CAssets managed solely for the adviser's parent company✓ Correct answer
- DAssets held in cash awaiting investment
Explanation
Why C — Assets managed solely for the adviser's parent company
Proprietary assets (managed solely for parent/affiliate) are excluded from AUM (SEC Form ADV instructions). Out-of-state clients (A), non-fee accounts (B), and cash assets (D) are included.
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