Series 63 practice questioneasyAUM calculation for federal covered adviser status
Which of the following assets MUST be included when an investment adviser calculates assets under management (AUM) for federal covered adviser status under the Uniform Securities Act?
- AAssets managed without discretionary authority
- BAssets managed for non-US clients✓ Correct answer
- CAssets managed solely for the adviser's own account
- DAssets managed temporarily under a consulting engagement
Explanation
Why B — Assets managed for non-US clients
Assets managed for non-US clients are included in the AUM calculation for federal covered adviser status. Assets managed without discretionary authority are generally excluded unless the adviser provides continuous and regular supervisory or management services. Proprietary assets (adviser's own) are excluded. Consulting engagements are excluded unless ongoing management is provided.
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