Question

Under the Uniform Securities Act, the threshold where a State-registered adviser is considered to have taken custody of client funds if it charges prepaid advisory fees, is:

Answer 1

Answer:

The advisory fees will be "$500, 6 months or more in advance of rendering services".

Explanation:

• Whenever a nation-registered investment manager recognizes $500 (and sometimes more) of advanced consulting fees, 6 months more than before anticipation of providing services, then perhaps the consultant is deemed to have obtained ownership of customer funds being defined by NASAA.
• (In comparison, it should also be noted that perhaps the Advisers (investment) Act of year 1940 established the cap at $1,200 among Federal Covered consultants, although that wasn't the law for govt-registered consultants).