Today, the United States Securities and Exchange Commission (“SEC”) passed long-proposed changes to the disclosure statements that federally registered investment advisers provide regulators and clients. Originally, the SEC proposed changes to Form ADV Part 2 in 2000. That proposal was never adopted, but a second proposal was issued in 2008 and finally passed today.
Category Archives: How to Become RIA
House Financial Services Committee Votes to Raise Assets Under Management for SEC Registration as Investment Adviser from $25 Million to $100 Million
October 29, 2009
Investment News is reporting that the Financial Services Committee of the U.S. House of Representatives passed today an amendment to the Investor Protection Act, H.R. 3817, whereby the general assets under management requirement to register with the U.S. Securities and Exchange Commission (“SEC”) as an investment adviser would increase from $25 million to $100 million.
Private Investment Advisers Registration Act is Passed by House Committee on Financial Services
October 28, 2009
The Financial Services Committee of the U.S. House of Representatives passed H.R. 3818, the Private Fund Investment Advisers Registration Act, which requires advisers to private funds to register with the U.S. Securities and Exchange Commission (“SEC”).
NASAA President Appears on Fox News as an Advocate of Raising the AUM Requirement for SEC Registration as an Investment Adviser
October 05, 2009
Denise Voigt, the Texas Securities Commissioner and incoming President of the North American Securities Administrators Association (“NASAA”), recently appeared on Fox News to discuss why state securities regulators have the experience and will to take on more regulatory authority with respect to registered investment advisers.
NASAA President Calls for Raising AUM to $100 Million for SEC Registration of Investment Advisers
September 19, 2009
In a recent speech at the North American Securities Administrators Association (“NASAA“) annual conference, Texas Securities Commissioner, Denise Voigt Crawford who is the incoming NASAA President, revealed that the SEC might raise the asset under management (“AUM“) threshold for SEC registration of investment advisers from $25 million to $100 million, and NASAA supports such a change.
Single Family Office Not Required to Register with SEC
July 09, 2008
The SEC recently granted an order under Section 202(a)(11)(G) of the Investment Advisers Act of 1940 (“Advisers Act”) declaring that a particular “family office” and its employees, when acting within the scope of their employment, are not required to register as investment advisers pursuant to Section 203(a) of the Advisers Act. The SEC granted this order because it found that the applicant and its employees are not within the intent of Section 202(a)(11) of the Advisers Act which defines the term “investment adviser”. Section 202(a)(11)(G) allows the SEC to designate by rule, regulation, or order that certain persons are not within the intent of the definition of an “investment adviser.”
2008 IARD Annual Renewal and Form ADV Annual Amendment Requirements
October 24, 2007
Beginning Monday, November 5, 2007, investment advisor firms can access their 2008 Preliminary Renewal Statements via their IARD account. The Preliminary Renewal Statement must be paid, in full, by Monday, December 10, 2007. Because it takes approximately two days for payment to post to the IARD account, the funds should arrive no later than Thursday, December 6, 2007, to ensure the money is posted to your IARD account by the 10th.
Broker/Dealer Exemption Rule Vacated
May 11, 2007
In a 2-1 decision issued at the end of March, the U.S. Court of Appeals for the District of Columbia Circuit threw out what is commonly referred to as the Merrill Lynch Rule, formally known as Rule 202(a)(11)-1 of the Investment Advisers Act of 1940. Under this rule, the SEC exempted certain broker-dealers from investment advisor registration even if the broker-dealers provide what many contend to be advisory services and charge a fee for such services. From its inception, the Financial Planning Association fought the rule and ultimately received a successful outcome with last week’s ruling. In the ruling, Judge Judith Rogers and Judge Brett Kavanaugh noted that the SEC exceeded its authority by exempting brokerage firms that charge asset-based fees from registration under the Advisers Act.
Is It Time to Register with the SEC?
February 02, 2007
Because many firms have a December 31 fiscal year-end, it is likely that your investment advisor firm is currently working on its Form ADV Part 1 Annual Amendment. The Annual Amendment must be submitted through the IARD within ninety (90) days after an advisor’s fiscal year-end. While there are other criteria for registering with the SEC, by far the most common test for SEC registration is a firm’s assets under management. Therefore, for a large majority of firms, when completing the Annual Amendment, an advisor firm must pay close attention to updating the firm’s assets under management. Regulators, both at the federal and state levels, have stated an advisor’s assets under management must be current as on the firm’s most recently completed fiscal year.
Is It Time to Register with the SEC?
January 31, 2006
It’s likely that your investment advisor firm is currently working on its Form ADV annual amendment since it must be filed within ninety (90) days after an advisor’s fiscal year end. You should pay particular attention to updating the firm’s assets under management since regulators have stated an advisor’s assets under management must be current as of the firm’s most recently completed fiscal year.
