If a small adviser with less than 25 million AUM would be required to register in 15 or more states, they would register with the:

• A. State securities regulator
• B. SEC
• C. Federal Reserve
• D. Department of the Treasury

Answer: (B)

The key idea is regulator selection based on scale and geographic reach. Investment advisers typically register with state regulators, especially when they have smaller assets under management. But when an adviser conducts business in many states—15 or more in this scenario—the most efficient and compliant path is to register with the Securities and Exchange Commission. This federal registration covers the entire country, avoiding the need to register in a large number of individual states and aligns with the “multi-state adviser” rule that triggers SEC registration. State regulators handle the day-to-day oversight for smaller, more locale-specific practices, while the SEC takes over when an adviser has broad interstate reach. The other two options—the Federal Reserve and the Department of the Treasury—do not oversee investment adviser registrations.