Tom and Sharon are ready to engage your concern. Tom is concerned that you are not properly qualified to manage his assets because you are not registered with the SEC. What is your best response? The individual state securities departments collectively assist in the management of the SEC. Therefore SEC regulation is neither permitted nor required if an investment advisor is registered with his or her state. All options listed are correct Registering as an investment advisor in your state is the same as registering with the SEC because many state Investment advisor regulations are patterned after the federal Investment Advisor Act of 1940. Investment advisors with less than 100 clients are generally prohibited from registering with the SEC, Investment advisors with less than $25 million of assets under management are generally prohibited from registering with the SEC. inns