It’s recommended that you contact your local commercial insurance agent as soon as possible since this can be a relatively slow process. Please refer to the particular requirements published by your firm’s home state securities regulator. Your state securities regulator will likely have a surety bond form or affidavit that will need to be executed by the surety and/or its agent.
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Are investment advisors subject to any net worth/net capital or bonding requirements?
November 02, 2018
The SEC does not currently have a specific net worth/net capital or bonding requirement for an investment advisor. However, the SEC will heavily focus on the financial condition of an investment advisor during a regulatory examination. The following are the specific financial records that must be kept as part of an investment advisor’s books and records. Most states require the same or similar records.
How often are investment advisor registrations renewed?
November 02, 2018
State investment advisor registrations and notice filings expire every year on a calendar basis. All renewal fees are paid during the IARD renewal season which takes place during November and early December each year.
SEC and state registered advisor firms and their investment advisor representatives are subject to initial and annual state licensing fees. A listing of such investment advisor fees can be found on the IARD’s public website at http://www.iard.com/fees.asp. In addition, the IARD system charges an initial and annual $30 fee for each investment advisor representative licensed through the IARD/Web CRD system.
For SEC registered investment advisor firms, the answer is “yes”. The SEC, under Rule 206(4)-7, requires all federally registered investment advisor firms to develop and maintain written compliance programs. The policies and procedures should be designed to prevent violations from occurring, detect violations that have occurred, and promptly correct any violations that have occurred. While the SEC did not delineate all the procedures that must be made part of a written compliance program, the SEC does expect an investment adviser’s policies and procedures, at a minimum, to cover the following issues:
When does the Form ADV have to be amended?
November 02, 2018
State and SEC registered investment advisory firms are required to file an annual amendment to the Form ADV via the IARD system within 90 days of the close of the investment advisor’s fiscal year. Additionally, an investment advisor should promptly update its Form ADV within 30 days of any material changes.
How long does the registration process take?
November 02, 2018
It usually takes three to four weeks to prepare the investment advisor application and the associated documents. Once you submit the investment advisor application, it will take approximately three to four weeks for the SEC or state to review your application. However, this can vary significantly due to the particular volume and staffing associated with each securities regulator. In the event that you or your firm has a disciplinary history with securities regulators or is currently subject to a regulatory inquiry or investigation, the investment advisor registration process will be considerably longer or delayed.
Assuming an individual serving as the chief compliance officer of an SEC registered investment advisor firm does not regularly solicit, meet or otherwise communicate with investment advisory clients, the Investment Advisers Act of 1940 (“Investment Advisers Act”) and SEC do not specifically require such individual to be registered as an investment adviser representative. (Please see SEC Rule 203A-3 for additional details.) However, the individual serving as the CCO of an SEC registered investment advisor must be a supervised person of the investment advisor firm. Under the Investment Advisers Act, an SEC registered investment advisor firm is required to appointment a CCO to administer the investment advisor firm’s required compliance policies and procedures. The CCO is typically responsible for overseeing ongoing compliance and provides a resource for giving guidance and answering questions of its supervised persons. The individual serving as the CCO should have a good understanding of applicable investment advisory rules and regulations, and the investment advisor firm should grant the CCO with sufficient authority to enforce the investment advisor firm’s compliance policies and procedures. Although the SEC may not specifically require the CCO of a federally registered investment advisor firm to register as an investment adviser representative, certain state securities regulators may take a contrary interpretation. Consequently, it is recommended that an SEC registered investment advisor firm also review the investment advisory rules of the state securities regulator where the CCO is located. Likewise, a state registered investment advisor firm should consult its state’s investment advisory rules for more information whether an individual serving as the CCO of a state registered investment advisor is required to register with the state securities regulator as an investment adviser representative.
How can an individual obtain a study guide to the Series 65 examination?
November 02, 2018
The Resources page on our website contains links to some of the better known study guide service providers.
What topics are tested on the Series 65 examination?
November 02, 2018
For information about the most current topics covered in the Series 65 examination, the North American Securities Administrators Association (NASAA) website is an excellent resource. The website contains an outline of the topics covered in the exam. Click the following link to be directed to the NASAA website – http://www.nasaa.org/content/Files/Series65ExamSpecs.pdf
