Investment Advisor SEC Registration and Regulatory Compliance

Question 1

Under the Investment Advisers Act of 1940, which threshold generally requires an investment adviser to register with the SEC?

Accepted Answer

$100 million in assets under management

Answer

$25 million in assets under management

Answer

$500 million in assets under management

Answer

$1 billion in assets under management

Question 2

An investment adviser with less than $100 million AUM typically registers with:

Accepted Answer

State securities regulators

Answer

The SEC only

Answer

FINRA directly

Answer

The Federal Reserve

Question 3

Which part of Form ADV contains the adviser's brochure that must be delivered to clients?

Accepted Answer

Part 2

Answer

Part 1

Answer

Part 3

Answer

Part 4

Question 4

How often must a registered investment adviser update their Form ADV?

Accepted Answer

Annually within 90 days of fiscal year-end

Answer

Every 5 years

Answer

Only when material changes occur

Answer

Quarterly

Question 5

Which exemption allows venture capital fund advisers to avoid full SEC registration?

Accepted Answer

The venture capital fund adviser exemption

Answer

The de minimis exemption

Answer

The family office exemption

Answer

The intrastate exemption

Question 6

An investment adviser representative (IAR) who wants to work with retail clients must generally be registered in:

Accepted Answer

Each state where the IAR has clients or conducts business

Answer

Only the state where the IAR's firm is headquartered

Answer

Only federally through the SEC

Answer

No registration is required for IARs