A registered investment advisor is required to make and keep true, accurate and current certain books and records relating to its investment advisory business. For investment advisors registered with the U.S. Securities and Exchange Commission (SEC), these required books and records are outlined in Rule 204-2 of the Investment Advisers Act of 1940 (“Advisers Act”). Each investment advisor registered with the SEC should familiarize itself with the requirements of this rule in relation to the documents and reports that need to be maintained, where and for how long the documents must be maintained, and how the documents may be maintained. Most books and records requirements for state registered investment advisors are the same as or similar to the SEC requirements, but each investment advisor needs to make sure that it familiarizes itself with the requirements of the appropriate governing authority.
Category Archives: Webinar
By now, registered investment advisors affected by the changes to Rule 203A-5 under the Investment Advisers Act of 1940 (“Rule 203A-5”), mid-sized investment advisor firms (firms with assets under management between $25 million and $100 million), should have begun the process of switching from registration with the U.S. Securities and Exchange Commission (“SEC”) to state registration. Mid-sized advisor firms making the switch must keep in mind that filing the Form ADV Part 1 amendment and submitting an application for registration with the appropriate state regulatory agencies is just the first step in the process of making the switch from SEC to state registration. A registered investment advisor must familiarize itself with the regulatory requirements of the SEC or state securities regulators, as applicable, and make sure that appropriate procedures are in place for complying with these requirements. For a mid-sized advisor this will mean reviewing and making sure that it is complying with the appropriate state rules and regulations versus those of the SEC.
SEC Brings Enforcement Action for Misrepresentations on Form ADV
January 11, 2012
The U.S. Securities and Exchange Commission (“SEC”) recently issued an Order Instituting Administrative and Cease-and-Desist Proceedings against Calhoun Asset Management, LLC (“Calhoun”) and its principal for, among other things, making false and misleading statements on Calhoun’s Form ADV.
Investment Advisor Firms Registered with the SEC Required to Confirm Eligibility with First Quarter ADV Amendment Filing
November 02, 2011
Earlier this year, the U.S. Securities and Exchange Commission (“SEC”) adopted Rule 203A-5 to implement changes to SEC registration criteria, including increasing the assets under management threshold for SEC registration from $25 million to $100 million. In order to convert to the new standards for SEC registration, the SEC is requiring all investment advisor firms registered with the SEC on January 1, 2012, to file a Form ADV Part 1A amendment by no later than March 30, 2012. Each investment advisor firm will be required to report the market value of its assets under management (determined within 90 days of the filing of the amendment) and to specify if the investment advisor firm remains eligible for SEC registration. If it is determined that the investment advisor firm is not eligible to remain registered with the SEC, the investment advisor must withdraw from SEC registration by submitting a Form ADV-W by no later than June 28, 2012. If the investment advisor firm intends to continue operations, then the investment advisor firm’s registration must be approved by state regulators before the firm withdraws its SEC registration.
Client Feedback Webinar Survey
October 03, 2011
RIA Compliance Consultants is committed to providing quality webinars filled with informative regulatory tips and up to date compliance matters. In efforts to ensure our clients are receiving the best possible webinar presentations, we have compiled a short, six question survey that we ask you take the time to complete. Your answers will help us improve the content of the webinars we provide for your benefit. Any feedback is greatly appreciated.
The “Switch” Webinar Hosted by advisors4advisors.com
August 12, 2011
Join our senior compliance consultant, Tammy Emsick, as she discusses the upcoming regulatory switch for mid-sized investment advisors in today’s advisors4advisors.com webinar. To join click here. Note: advisors4advisors.com does require users to register as a member; however, members of advisors4advisors.com can replay any webinar 24/7.
Do You Understand the Responsibilities Related to Serving as an Investment Adviser’s Chief Compliance Officer?
August 09, 2011
Your investment adviser’s chief compliance officer (“CCO”) must be knowledgeable regarding the Investment Advisers Act of 1940, competent in regard to administering your compliance program and empowered to enforce compliance with your policies and procedures.
The United States Securities and Exchange Commission (“SEC”) recently adopted the long-awaited amendments to Part 2 of Form ADV and related rules under the Investment Advisers Act of 1940. The Form ADV Part 2 amendments will require all investment advisors registered with the SEC to prepare and file plain English narrative brochures and supplements. SEC registered advisors will now be required to file these narrative brochures electronically through the IARD system in a text searchable PDF format. This filing process for the new Form ADV Part 2 is a task that state registered investment advisor firms have been required to do for sometime now but this will be a new process for SEC registered investment advisor firms.
Section 31(a) of the Investment Company Act of 1940 (“ Investment Company Act”) requires that each registered investment adviser “maintain and preserve” records of accounts, correspondence, memorandums, tapes, discs, papers, books, and other documents or transcribed information. These books and records are to be maintained for a period of five years and are subject to random periodic inspection by the U.S. Securities and Exchange Commission (“SEC”). Likewise, under Rule 204-2 of the Investment Advisers Act of 1940 (“Investment Advisers Act”), the SEC requires certain books and records to be maintained by a registered investment adviser regardless of whether of the investment adviser is associated with a registered investment company.
When holding itself out to the public, an investment adviser should not imply that the U.S. Securities and Exchange Commission (SEC), a state securities regulator or another governmental agency has sponsored, recommended or approved the firm, based upon its registration. For example, an investment advisor should not use the term “Registered Investment Adviser” to imply that as an investment advisor, it has a level of professional competence, education or special training. The term should not be used after an individual’s name unless the individual is registered as an investment advisor (i.e. the registered entity is a sole proprietor). The same is true for the acronym “RIA” which should not be used after a person’s name because using initials after a name usually indicates a degree or a licensed professional designation for which there are certain qualifications; however, there are no federal qualifications for becoming an SEC-registered investment adviser.
