Fifteen states require investment advisers to register their branch offices with the state securities regulator. Currently, the Alabama Securities Commission, the Arkansas Securities Department, the Connecticut Department of Banking, Securities and Business Investments Division, Florida’s Office of Financial Regulation , Hawaii’s Department of Commerce and Consumer Affairs, Idaho’s Department of Finance, the Illinois Securities Department, Maine’s Office of Securities, the New Hampshire Bureau of Securities, the New Mexico Securities Division, the Ohio Department of Commerce, the Texas State Securities Board, Vermont’s Department of Financial Regulation, the West Virginia Securities Commission, and Wisconsin’s Department of Financial Institutions require investment adviser branch offices to register with state securities regulators. Some of these 15 state securities regulators require an investment adviser branch office registration fee while other states only require registration of each investment adviser branch located in their state. For state securities regulators that do charge branch office registration fees, the charges range from $20 (by the Illinois Securities Department) to $300 (by the New Mexico Securities Division). For further information on the investment adviser registration requirements in each state, refer to the North American Securities Administrators Association (“NASAA”) website.
Category Archives: Registration
Mid-sized investment adviser firms that did not register with one or more state securities regulators by the June 28, 2012, deadline are in danger of being de-registered by the U.S. Securities and Exchange Commission (SEC) as early as this week. However, the first wave of terminations may not occur until September according to a staff member from the SEC who spoke with one of our Senior Compliance Consultants earlier this year. Investment advisers that did not file an amendment to Form ADV Part 1 confirming their registration status by the March 31, 2012, deadline and/or have not filed a state registration application, if no longer SEC eligible; face the highest risk for untimely termination.
Make Sure You Properly Renew Your Investment Adviser Firm and Representative Registrations
November 09, 2011
Investment adviser firms and investment adviser representatives must maintain active registrations and/or notice filing statuses with applicable jurisdictions/states. Investment advisers should be aware that renewing registrations includes paying all applicable renewal fees by December 12, 2011. Unless properly renewed, all investment adviser firm and representative registrations will expire on December 31st of each calendar year. Failure to maintain active registration or failing to properly renew registration may be detrimental to an investment advisor firm. Investment adviser firms and investment adviser representative that are not properly renewed may become ineligible to conduct business affected jurisdictions effective January 1, 2012. Additionally, certain regulators may assess fines against those firms or representatives that fail to properly renew.
IARD Renewal Reminder
November 01, 2011
The 2012 IARD renewal season is quickly approaching and investment advisor firms must plan accordingly. As of October 24, 2011, investment advisor firms may submit certain post-dated filings. Post-dated Form U5 filings are used 1) to terminate an investment advisor representative from the investment advisor firm and 2) to terminate an investment advisor representative from registration in states where the investment advisor representative no longer needs to license. Post-dated Form BR amendments are used to close or withdraw a registered branch office. Beginning November 1, 2011, investment advisor firms may submit a post-dated Form ADV-W, which is the filing used to withdraw a firm’s registration in one or more jurisdictions.
A lot of important information regarding the upcoming requirement for mid-sized advisors to switch from SEC to state registration was provided during the recent webinar, “The Switch is On Again for RIAs,” hosted by Advisor4Advisor and presented by Tammy Emsick of RIA Compliance Consultants. Therefore, we would like reiterate a few of the main points presented during this webinar.
The Switch from SEC to State Registration for Investment Advisers with Less than $100 Million of Assets under Management
August 31, 2010
The eligibility for registration as an investment adviser with the U.S. Securities and Exchange Commission (“SEC”) based upon the amount of assets under management will increase from the current minimum threshold of $25 million to a new threshold of $100 million pursuant to the Dodd-Frank Financial Reform Act, which passed on July 21, 2010. The Dodd-Frank Financial Reform Act included a provision affecting registered investment advisers eligible for SEC registration based upon the amount of assets under management and requiring that registered investment advisers with less than $100 million in assets under management register with state securities regulators rather than the SEC. It is estimated that as a result of this increased eligibility threshold, over 4,000 investment advisers currently registered with the SEC will need to register with the state securities regulator for each state where the investment adviser firm conducts investment advisory business and does not meet an exemption from the investment adviser registration requirements in that state.
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.
