Series 63 practice questionmediumEligibility for State Registration
Which of the following advisers is eligible to register only with a state (not the SEC) under the USA?
- AAn adviser with $75 million AUM and offices in three states✓ Correct answer
- BAn adviser with $115 million AUM
- CAn adviser managing a registered investment company
- DAn adviser that only advises pension plans of over $200 million
Explanation
Why A — An adviser with $75 million AUM and offices in three states
Advisers with under $100 million AUM register with states, even if they have offices in multiple states (Section 203A of the Advisers Act). $115 million and mutual fund advisers must register federally.
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