As you review your investment adviser firm’s Preliminary Renewal Statement from the IARD system, your investment adviser firm should consider whether its investment adviser representatives should be registered as an investment adviser representative in a particular state.
Your investment adviser firm should take prompt action if there is an individual listed as an investment adviser representative on the Preliminary Renewal Statement that is no longer affiliated with your investment adviser firm. A Form U5 must be submitted via the Web CRD system to terminate the individual’s registration and must be submitted no later than Thursday, December 26, 2019 if your investment adviser firm desires a refund of the 2020 renewal fee from the state. (See our Rep Term Checklist which provides tasks to perform when an investment adviser representative’s affiliation is terminated with the investment adviser firm.)
Your investment adviser firm needs to act if there is an individual not listed on the Preliminary Renewal Statement that should be registered with a state regulator as an investment adviser representative under your investment adviser firm. A Form U4 must be submitted to register the individual under your investment adviser firm in the proper jurisdiction. An initial state-filing fee will be assessed upon submission of the Form U4 and a renewal fee will be assessed on the Final Renewal Statement if the investment adviser representative is approved by the state regulator before the end of the year. (See our Prospective Rep Checklist – Compliance Issues which includes various compliance issues which may be relevant in determining whether to affiliate with a prospective investment adviser representative.)
Although your investment adviser firm may file a Form U5 withdrawing an individual’s investment adviser registration or a Form U4 registering an individual as an investment adviser representative, your investment adviser firm still must pay the Preliminary Renewal Statement in full, by Monday, December 16, 2019 (partial payment is not sufficient to approve renewals). You will not receive credit for any refunds until the Final Renewal Statement.
