Exercise
Answer True or False
- 1. True or false. An investment adviser with no place of business, 20 institutional clients, and 3 non-institutional clients in State A has to register there.
- 2. True or false. An investment adviser with no place of business and six non-institutional clients in State A has to register there.
- 3. True or false. An investment adviser with $200 million assets under management and six non-institutional clients in State A has to register there.
- 4. True or false. An investment adviser with $75 million in assets under management that is registered in 16 states is allowed to register at the federal level.
- 5. True or false. To register at the state level, an investment adviser needs to file both a Form ADV and a Form U4.
- 6. True or false. An investment adviser must always have a net worth of at least $35,000.
- 7. True or false. Investment advisers must keep most records on file for at least five years.
- 8. True or false. A state administrator cannot require an investment adviser to maintain net capital amounts greater than that required at the federal level.
- 9. True or false. Investment advisers cannot be audited more than once a year.
- 10. True or false. An adviser’s withdrawal of registration becomes effective as soon as it is filed with the state administrator.
Answers
- 1. False. An investment adviser with no place of business in a state does not have to register there if its clients in that state are institutional clients plus no