New regulation in the state of Massachusetts will now require investment adviser representatives registering with the state of Massachusetts for the first time to complete a criminal background check referred to as Criminal Offender Record Information (CORI) check. The Secretary of the Commonwealth, William Gavin, his office believes such CORI checks will serve to protect investors. Beginning January 1, 2014, each new application for registration as an investment adviser representative will be required to complete the CORI check and submit as part of their application to the state a CORI acknowledgement form to the Massachusetts Security Division as part of the application process. For complete review of the change in Massachusetts Regulations please click here.
Category Archives: Investment Adviser Representative
Minnesota Investment Adviser Representatives Required to Register
November 20, 2013
As we have discussed in previous articles, effective August 31, 2013, Minnesota law requires registration for investment adviser representatives. An Order dated October 31, 2013, has been issued by the Minnesota Department of Commerce regarding the “Implementation of Registration Process for Investment Adviser Representatives.” According to this Order, the initial registration period in Minnesota for investment adviser representatives is November 1, 2013 through January 31, 2014. Under Minnesota law, the application for initial registration as an investment adviser representative is made by completing Form U4 and filing the Form U4 with the IARD. The application for initial registration must also include proof of compliance by the investment adviser representative with the following examination requirements:
How Much Will It Cost to Register an Investment Adviser?
February 10, 2013
When an individual is considering whether to start a registered investment adviser, a primary concern is how much will it cost to set-up an investment adviser firm. The set-up expenses can vary greatly depending upon whether the firm will need to register as an investment adviser with the U.S. Securities Exchange Commission (“SEC”) or with the state securities regulator, the size of the investment adviser, the complexity of the proposed investment adviser’s business model, and the conflict or potential conflict of interest situations that will exist. An individual looking to register as an investment adviser will not only need to take into consideration the cost involved in the actual investment adviser registration process but will also need to consider the cost of getting the appropriate office set-up and systems in place as well as any staffing related costs.
Are Fingerprints Required When an RIA Registers an Investment Adviser Representative?
December 09, 2012
If an investment adviser representative was previously licensed as a registered representative/securities agent with a broker/dealer through the Web CRD system, the state securities regulator should be able to access fingerprint information already on file. Also, if an investment adviser representative was previously licensed with another investment advisor firm, the state securities regulator will generally not require a new fingerprint card. It should be noted that many state securities regulators do not even require a fingerprint card, so it is important you check with the state securities regulator prior to completing a fingerprint card.
Incorrect Fee on Preliminary Renewal Statement for Georgia Investment Adviser Representatives
November 16, 2012
The Georgia Securities Division recently issued a notice for investment adviser representatives registered in Georgia. The notice indicated that due to an administrative error, an investment adviser firm’s Preliminary Renewal Statements, now available on the Web CRD / IARD system, does not accurately reflect the correct investment adviser representative renewal fee. The correct fee for individuals registered in Georgia as only an investment adviser representative is $100 per individual and not the $30 fee per individual as displayed on the Preliminary Renewal Statement. The Georgia Securities Division further indicated that correct fees will be displayed on Final Renewal Statements once those become available.
Investment Advisers Must Make Investment Adviser Representatives Aware of the Need to Update U4
August 15, 2012
Investment adviser representatives must make amendments in a timely manner to their Form U4s when a material change occurs. Typically, this means filing an amended Form U4 within 30 days of the material change. Failure to do so can lead to fines, suspensions, or even being barred from acting as an investment adviser representative. Investment advisers must make sure their investment adviser representatives are aware of this requirement and understand the consequences of failing to update their Form U4s.
