Investment Advisor SEC Registration and Regulatory Compliance 1

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

Investment advisers with $100 million or more in assets under management generally must register with the SEC rather than state regulators.

Question 2

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

Accepted Answer

State securities regulators

Answer

Investment advisers below the $100 million AUM threshold generally register with their state's securities regulator rather than the SEC.

Question 3

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

Accepted Answer

Part 2

Answer

Form ADV Part 2 is the narrative brochure that must be provided to clients, disclosing the adviser's services, fees, conflicts, and disciplinary history.

Question 4

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

Accepted Answer

Annually within 90 days of fiscal year-end

Answer

Registered investment advisers must file an annual updating amendment to Form ADV within 90 days after their fiscal year-end.

Question 5

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

Accepted Answer

The venture capital fund adviser exemption

Answer

The Dodd-Frank Act created a specific exemption for advisers solely to venture capital funds, allowing them to be exempt reporters rather than fully registered advisers.

Investment Advisor Practice Test

Investment Advisor Practice Test

Investment Advisor SEC Registration and Regulatory Compliance 1