Series 63 practice questioneasyState vs. Federal Registration
Which of the following firms would most likely register with the SEC as a federal covered investment adviser under the Uniform Securities Act?
- AA firm with $150 million in assets under management (AUM)✓ Correct answer
- BA firm with $80 million in AUM and no business in any other state
- CA firm that only gives advice about U.S. government securities
- DA firm that only advises clients in its home state and has no office elsewhere
Explanation
Why A — A firm with $150 million in assets under management (AUM)
Federal covered advisers under the USA must register with the SEC if they have $110 million or more in AUM (Section 202(a)(11) of the USA). Options B, C, and D do not meet the threshold or criteria.
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