Series 63 practice questionmediumannual updates
Which of the following scenarios would require an investment adviser to file an amendment to its Form ADV promptly, rather than waiting for the annual update?
- AChange of ownership of the adviser✓ Correct answer
- BHiring a new administrative assistant
- CMinor change of office hours
- DIncrease in assets under management
Explanation
Why A — Change of ownership of the adviser
A change of ownership is a material change and must be reported promptly (USA Rule 203-1). Hiring support staff or minor operational changes do not require prompt updates. Assets under management are reported in the annual update unless it triggers a registration threshold.
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