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White and Associates Is an Investment Adviser Registered in the State

Question 93

Multiple Choice

White and Associates is an investment adviser registered in the state of Kentucky and, as such, is meeting Kentucky's minimum net capital requirement for investment advisers. The firm recently registered with the state of Virginia and has opened an office there. Virginia has a significantly higher net capital requirement for its investment advisers. Which of the following statements is true?


A) According to the Uniform Securities Act, S. White will have to meet Virginia's higher requirement.
B) According to the Investment Advisers Act of 1940, S. White needs only to meet the net capital requirement of Kentucky.
C) According to the Securities Exchange Act of 1934, S. White needs to meet at least the minimum net capital requirement specified by that Act since it is now operating in multiple states.
D) According to the Investment Advisers Act of 1940, S. White will have to maintain a minimum net capital equal to the average of the net capital requirements of the two states.

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