Investment advisers are expected to be eligible for SEC registration within how many days?

• A. 60 days
• B. 90 days
• C. 120 days
• D. 180 days

Answer: (C)

The question focuses on how long the SEC takes to process and grant registration for an investment adviser after they qualify to register. When an adviser is eligible to register with the SEC, the standard processing window for a complete registration package (typically Form ADV and related disclosures) is up to 120 days. This is the period the SEC uses to review the application, verify information, and ensure all disclosures are complete before the registration becomes effective.

Why 120 days fits best: 120 days reflects the typical review cycle for initial SEC registrations, giving the agency enough time to perform its checks and for the adviser to provide any requested additional information. Shorter timeframes like 60 or 90 days generally don’t allow for the full due diligence and background checks, while 180 days exceeds the standard processing benchmark most exam materials cite. Keep in mind that if the SEC requests more information or findings require further review, the period can be extended.