Under the registration thresholds, which size category applies to an investment adviser with 25 to 100 million dollars in assets under management?

• A. Small — Less than 25 million AUM
• B. Mid-size — 25 to 100 million AUM
• C. Large — 100 million AUM and up
• D. Micro — 1 to 10 million AUM

Answer: (B)

Registration thresholds categorize advisory firms by how much they manage, which determines how they register. The mid-size label is defined as having 25 to 100 million dollars in AUM, so an adviser within that range fits this category. The smaller ranges (micro or small) are for amounts under 25 million, and the large category is for 100 million dollars and up. While the boundary at 100 million can vary by source, in this question the 25 to 100 million range is specifically the mid-size category.