An investment adviser is a private fund adviser that is not required to register with the sec. it has a pool of qualified investors and wants to add to the pool to increase its customer base and assets under management. in order to retain its exempt pool status, the investment adviser must

The correct answer to the following question is the investment adviser can only solicit, those potential investors who are qualified.

Explanation:

As per the investment act of 1940, those who are private fund advisers with the asset under management less than $150 million, they're exempt from registering with Securities exchange commission. Here private fund is defined as that fund where registration with SEC is required as an investment company,but isn't required to do that because -

1) it doesn't offer security to public

2) It has less than 100 beneficial owners of securities

3) it doesn't offer securities to public.

answer; strategic planning;

answersupplies;