Joe Jones, the proprietor of Joe Jones Financial Planning Inc., which is registered as an investment adviser in New York State, has decided that he can expand his business by setting up an Internet website. He includes a questionnaire that solicits individuals to transmit information about their investment objective, financial situation, financial needs, risk tolerance level and investment time horizon, which he will use to create a financial model and plan for a fee. Which statement is TRUE

Available Options are:

A. Joe Jones financial planning Inc. must register with the S EC as an investment advisor but is not required to register as an investment advisor in each state where customers complete the questionnaire

B. Joe Jones financial planning Inc. is not required to register with the SEC as an investment advisor, but the firm is required to register as an investment advisor in each state where customers complete the questionnaire

C. Joe Jones financial planning Inc. is required to register with the SEC as an investment advisor, and the firm is required to register as an investment advisor in each state where customers complete the questionnaire

Option B is correct.

Explanation:

Because the reason is that Joe Jones financial planning Inc., is not a large size firm hence they are not required to register with the SEC whereas they are required to register as an investment advisor in each state where they are operational as an investment advisor and are processing cases of customers who complete the questionnaire.

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