Failure to Properly Renew Registration may Result in Adverse Consequences for Investment Advisers

October 21, 2014

Investment adviser firms and investment adviser representatives must maintain active registrations and/or notice filing statuses with applicable jurisdictions/states. Unless properly renewed, all investment adviser firm and investment adviser representative licensing approvals expire December 31 each calendar year. In order to ensure that investment adviser firms and their investment adviser representatives are properly licensed in all necessary jurisdictions for 2015, renewal fees must be paid through the Investment Adviser Registration Depository (“IARD”) system.

Failure to maintain active registration or failure to properly renew registration by the deadline may be detrimental to an investment adviser firm.  Investment adviser firms and investment adviser representatives that are not properly renewed may become ineligible to conduct business effective January 1, 2015. Additionally, certain regulators may assess fines against those firms or representatives that fail to properly renew.

Most jurisdictions participate in the IARD Automatic Failure to Renew Program. If your investment adviser firm or its representatives are registered or notice filed in a jurisdiction that participates in the IARD Automatic Failure to Renew Program, your jurisdiction has authorized FINRA to automatically terminate your investment adviser firm and investment adviser representative registrations on December 31, 2014, if your investment adviser firm’s IARD Renewal Account is not funded by the renewal deadline.

Beginning November 10, 2014, your investment adviser may retrieve its Preliminary Renewal Statement using the IARD/Web CRD system. Your investment adviser’s Preliminary Renewal Statement will reflect the full payment due in your investment adviser firm’s FINRA IARD Renewal Account by December 12, 2014.

If your investment adviser firm needs assistance with the renewal process or determining if it is properly registered, RIA Compliance Consultants can assist you. If you are an existing client of RIA Compliance Consultants, please contact your consultant to discuss how we can assist you. If you have not previously worked with RIA Compliance Consultants, please click here to learn more about our 2015 IARD Renewal Service and Form ADV Annual Amendment Service or click here to schedule a time to speak with one of our consultants.

Posted by Bryan Hill
Labels: Annual Amendment, Renewals