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.

For a complete release of the SEC’s final “Rules Implementing Amendments to the Investment Advisers Act of 1940,” click here.

For more information regarding regulatory changes made in 2011, register for our webinar, “2011 Review – Are You Aware of the Changes in 2011 and Is Your Investment Advisor on Track for 2012?,” hosted Thursday, November 10, 2011 at 12:00 Central. The cost for this webinar will be $59.95. To register, please click here.

RIA Compliance Consultants can help you with updating your compliance program to comply with the new regulatory requirements or can assist you with switching from SEC to state registration.  If you are an existing client of RIA Compliance Consultants interested in discussing how we can assist your investment advisor, please contact your consultant. If you are a new client that would like to speak with us regarding the services we can provide, please click here to schedule a time to speak with one of our consultants.

Posted by Bryan Hill
Labels: Annual Amendment, Compliance Program, Switch from SEC to State, Webinar