RIA Glossary / Regulators & Filing Systems

U.S. Securities and Exchange Commission (SEC)

Quick Answer
The U.S. Securities and Exchange Commission (SEC) is the federal agency responsible for regulating securities markets and, for investment advisers, overseeing firms that manage roughly $100 million or more in regulatory assets under management (RAUM), along with certain other categories of advisers regardless of size.
Reviewed by Sam Carter, Director of Registration Services
Last reviewed October 2, 2026

What Is the U.S. Securities and Exchange Commission (SEC)?

The SEC’s Division of Investment Management oversees adviser regulation broadly, while its Division of Examinations conducts the exams that check firms’ compliance with the Investment Advisers Act of 1940 and related rules, including the Marketing Rule, Custody Rule, and Books and Records Rule. Advisers who register with the SEC file and maintain their Form ADV through the same IARD system used by state-registered advisers, but their primary regulatory relationship — including examinations and deficiency findings — runs through the SEC rather than a state securities division.

Certain advisers must register with the SEC regardless of AUM, including advisers to registered investment companies and, in some cases, advisers relying on specific federal exemptions unavailable at the state level.

Why it Matters

Understanding whether your firm registers with the SEC or a state — and why — shapes which set of rules, examination practices, and fee structures actually apply to your firm.

Frequently Asked Questions

Does every large RIA register with the SEC?

Generally yes, once RAUM crosses roughly $100 million, though some categories of advisers are required to register with the SEC regardless of AUM.

Can a firm choose to register with the SEC even if it's under the threshold?

In limited circumstances firms may be eligible to register with the SEC below the standard threshold, but this isn’t the norm and depends on specific exemptions.
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Related Terms

Regulation S-P

What Is Regulation S-P? Regulation S-P requires two main things: a privacy notice given to clients

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