What change did the Dodd-Frank Act bring to the requirements for registering Investment Advisers?

The Dodd-Frank Wall Street Reform and Consumer Protection Act significantly altered the landscape of investment adviser registration. One of the most notable changes was the increase in the assets under management (AUM) threshold for registering as an investment adviser. The act established that investment advisers managing $100 million or more in assets would be required to register with the Securities and Exchange Commission (SEC), thereby streamlining the process for smaller advisories and focusing regulatory resources on larger firms.

This change reflects a broader regulatory strategy to enhance oversight of larger investment advisers, as their size poses greater potential systemic risks to the financial markets. By setting the AUM at $100 million, the SEC intended to balance protecting investors while also ensuring that smaller advisers are not subjected to the same burdensome regulatory framework meant for larger firms.

In conclusion, the correct answer highlights the updated minimum AUM requirement established by the Dodd-Frank Act, which has critical implications for investment advisers regarding registration and compliance responsibilities.