Laws & RegulationsQuestion 29 of 100
Which threshold generally determines whether a mid-sized adviser registers with the SEC rather than the states?
a.Number of employees only
b.The adviser's marketing budget
c.Assets under management crossing a regulatory threshold (with $100 million as a key dividing line under federal rules)
d.The adviser's years in business
Explanation
Assets under management determine federal versus state registration, with $100 million as a key dividing line for many advisers, and $110 million as the point requiring SEC registration, plus buffer rules. Below the threshold, an adviser is generally state-registered. Employee count and marketing budget are not the test.
Law Reference: Investment Advisers Act of 1940Practice all 100 questions free — no signup required.
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