Kansas Securities Regulator Suspends IA Firm
Earlier this fall, the Office of the Kansas Securities Commissioner entered an order to summarily suspend the investment advisor registration of a state firm located in Overland Park, Kansas. According to the Commissioner’s Press Release, the “firm committed fraud by informing a client that his funds were maintained in an account at a brokerage firm when, in fact, the funds were pooled with the funds of other investors in a second account controlled” by the advisor firm’s president. The firm also apparently did not fully cooperate with the state examiners during their investigation. This enforcement action serves as example as to how Kansas securities regulator will respond when an investment advisor attempts to circumvent state securities laws.
The Kansas Securities Commissioner has also become more visible through a series of television and radio advertisements encouraging the investing public to conduct its own investigating before hiring a Kansas based financial professional. In conjunction with these efforts to educate the public, Kansas has initiated a proactive approach to regulatory examinations and has already conducted numerous audits. As a result, it’s imperative that investment advisors located in Kansas ensure that they are implementing effective compliance programs and controls.
If your firm is located in Kansas and wants to discuss how RIA Compliance Consultants can help your firm meets its regulatory requirements, please give us a call at 877-345-4034.
The Kansas Securities Commissioner has also become more visible through a series of television and radio advertisements encouraging the investing public to conduct its own investigating before hiring a Kansas based financial professional. In conjunction with these efforts to educate the public, Kansas has initiated a proactive approach to regulatory examinations and has already conducted numerous audits. As a result, it’s imperative that investment advisors located in Kansas ensure that they are implementing effective compliance programs and controls.
If your firm is located in Kansas and wants to discuss how RIA Compliance Consultants can help your firm meets its regulatory requirements, please give us a call at 877-345-4034.
Labels: Custody, Enforcement
posted by bhill at 1:29 PM
An Individual Serving as Both RR/IAR Should Verify Actual Registration as an IAR with State Regulators
Do you serve as both a registered representative of a broker-dealer and an investment advisor representative of an investment advisory firm that’s independent of the broker-dealer?
If so, you should take this opportunity at the end of the year to verify that you are properly registered as an investment advisor representative with the applicable state regulators. Many individuals that are dually licensed as registered representatives/investment advisor representatives assume that the broker-dealer will handle filing the Form U4 and licensing/registration renewals for you in both of your capacities. However, if you are affiliated with an independent investment advisor firm that’s not owned or operated by your broker-dealer, it’s highly unlikely that the broker-dealer’s licensing department will have filed your Form U4 and handled your annual registration renewals in your role as an investment advisor representative.
Failing to maintain the proper registration as an investment advisor representative can result in serious consequences, which can include a regulatory fine, required refund of client fees, withdraw of registration and/or re-examination and re-registration. Therefore, we’d encourage you to take personal responsibility for your licensing status and ensure that you’re properly registered as an investment advisor representative.
If you or your firm needs additional assistance with registration requirements of investment advisor representatives, please contact RIA Compliance Consultants at your convenience.
If so, you should take this opportunity at the end of the year to verify that you are properly registered as an investment advisor representative with the applicable state regulators. Many individuals that are dually licensed as registered representatives/investment advisor representatives assume that the broker-dealer will handle filing the Form U4 and licensing/registration renewals for you in both of your capacities. However, if you are affiliated with an independent investment advisor firm that’s not owned or operated by your broker-dealer, it’s highly unlikely that the broker-dealer’s licensing department will have filed your Form U4 and handled your annual registration renewals in your role as an investment advisor representative.
Failing to maintain the proper registration as an investment advisor representative can result in serious consequences, which can include a regulatory fine, required refund of client fees, withdraw of registration and/or re-examination and re-registration. Therefore, we’d encourage you to take personal responsibility for your licensing status and ensure that you’re properly registered as an investment advisor representative.
If you or your firm needs additional assistance with registration requirements of investment advisor representatives, please contact RIA Compliance Consultants at your convenience.
Labels: Form U4
posted by bhill at 1:06 PM
Our Recent Release of a "Resources" Webpage
We're excited to announce a new Resources page on our website. Our goal with this page is to provide you with links to some of the more useful websites for today's Chief Compliance Officer. The page is also a good reference tool for individuals and firms just starting an investment advisor. We also invite you to check our website frequently in the future as we plan to include additional updates and articles concerning the regulatory maze facing today's investment advisor practitioner and compliance officer.
posted by bhill at 12:57 PM
Initial IARD/CRD Fee Waiver for State Registered Firms & IARs Delayed Until January 2007
In a blog last month, we informed you of the SEC and NASAA's intention to waive the initial Web CRD/IARD user fees charged to new investment advisor firms. The initial system fee to license an investment advisor representative (IAR) was also to be reduced from $45 to $30.
According to the original press release, it appeared the initial fee waiver was to go into effect on November 1, 2006 and last through October 31, 2008. As late as Friday, November 17, the NASD had not implemented the new fee waiver. After a call from Jarrod James, Senior Compliance Consultant at RIA Compliance Consultants, the NASD reviewed the matter and has now updated their website and apparently implemented the new change. While the initial fee waiver has now taken effect for SEC firms, state registered firms filing prior to year-end 2006 will be subject to an initial Web CRD/IARD fee of $105. The fee waiver for state registered firms will not go into effect until January 1, 2007. In addition, the initial IAR fee will remain at $45 through the end of the year and then drop to $30 on January 1, 2007.
If you, or your firm, are contemplating investment advisor registration, give us a call today to discuss our turnkey approach to investment advisor registration. We specialize in the registration of start-up investment advisor firms both at the SEC and state levels.
According to the original press release, it appeared the initial fee waiver was to go into effect on November 1, 2006 and last through October 31, 2008. As late as Friday, November 17, the NASD had not implemented the new fee waiver. After a call from Jarrod James, Senior Compliance Consultant at RIA Compliance Consultants, the NASD reviewed the matter and has now updated their website and apparently implemented the new change. While the initial fee waiver has now taken effect for SEC firms, state registered firms filing prior to year-end 2006 will be subject to an initial Web CRD/IARD fee of $105. The fee waiver for state registered firms will not go into effect until January 1, 2007. In addition, the initial IAR fee will remain at $45 through the end of the year and then drop to $30 on January 1, 2007.
If you, or your firm, are contemplating investment advisor registration, give us a call today to discuss our turnkey approach to investment advisor registration. We specialize in the registration of start-up investment advisor firms both at the SEC and state levels.
Labels: IARD
posted by bhill at 12:41 PM
2007 IARD Annual Renewal and Form ADV Annual Amendment Requirements
Beginning today, Monday November 6, 2006, investment advisor firms can access their 2007 Preliminary Renewal Statements via their IARD account. The Preliminary Renewal Statement must be paid, in full, by Friday, December 8, 2006. Because it takes approximately two days for payment to post to the IARD account, the funds should arrive no later than Wednesday, December 6, 2006, to ensure the money is posted to your IARD account by the 8th. Click here for detailed instructions, prepared by RIA Compliance Consultants, to fund your IARD account.
We also want to remind firms of their obligation to amend the Form ADV on at least an annual basis in the form of an Annual Amendment. This is required under Rule 204-1 of the Investment Advisers Act of 1940 and similar state rules. The Annual Amendment must be completed within 90 days after an advisor firm's fiscal year end. Since the majority of advisor firms coordinate their fiscal year end with the end of the calendar year, the Annual Amendment has become a requirement that must be completed at the beginning of each year for most firms. The main item that must be updated on the Annual Amendment is the firm's assets under management. Other items such as, but not limited to, the number of accounts, clients, employees, and advisor representatives should also be updated. The Annual Amendment can also be used to disclose any material changes. Keep in mind, however, that material changes need to be disclosed within 30 days no matter when they take place. Material changes include items such as, but are not limited to, reportable disciplinary and financial disclosures, changes in advisory programs, changes in fee arrangements and changes in billing practices.
RIA Compliance Consultants is offering a special package that includes assistance with completing both the annual renewal requirement and filing the Annual Amendment to Form ADV Part 1. For the low price of $445, RIA Compliance Consultants will help your firm confirm its registration status in all necessary jurisdictions and confirm the registration status of all investment advisor representatives for 2007. You will also receive an Annual Amendment Questionnaire which we will help you complete so that we may prepare and file your Form ADV Part 1 Annual Amendment within the necessary timeframe.
Engagements received after November 15 are subject to availability so complete and return the Agreement for Services today! Click here to view our engagement letter.
*If you are an RIA Compliance Consultants’ annual retainer client, this service is included in your retainer agreement. To learn more about our retainer services and fees please contact us at bhill@ria-compliance-consultants.com.
We also want to remind firms of their obligation to amend the Form ADV on at least an annual basis in the form of an Annual Amendment. This is required under Rule 204-1 of the Investment Advisers Act of 1940 and similar state rules. The Annual Amendment must be completed within 90 days after an advisor firm's fiscal year end. Since the majority of advisor firms coordinate their fiscal year end with the end of the calendar year, the Annual Amendment has become a requirement that must be completed at the beginning of each year for most firms. The main item that must be updated on the Annual Amendment is the firm's assets under management. Other items such as, but not limited to, the number of accounts, clients, employees, and advisor representatives should also be updated. The Annual Amendment can also be used to disclose any material changes. Keep in mind, however, that material changes need to be disclosed within 30 days no matter when they take place. Material changes include items such as, but are not limited to, reportable disciplinary and financial disclosures, changes in advisory programs, changes in fee arrangements and changes in billing practices.
RIA Compliance Consultants is offering a special package that includes assistance with completing both the annual renewal requirement and filing the Annual Amendment to Form ADV Part 1. For the low price of $445, RIA Compliance Consultants will help your firm confirm its registration status in all necessary jurisdictions and confirm the registration status of all investment advisor representatives for 2007. You will also receive an Annual Amendment Questionnaire which we will help you complete so that we may prepare and file your Form ADV Part 1 Annual Amendment within the necessary timeframe.
Engagements received after November 15 are subject to availability so complete and return the Agreement for Services today! Click here to view our engagement letter.
*If you are an RIA Compliance Consultants’ annual retainer client, this service is included in your retainer agreement. To learn more about our retainer services and fees please contact us at bhill@ria-compliance-consultants.com.
posted by bhill at 5:00 PM
MA Proposes New Regulations on Use of Senior Designations
The Massachusetts Securities Division (the "Division") is proposing a new rule that would prohibit investment advisor representatives from using certain professional designations implying specialized or knowledge associated with seniors.
According to the Division, this proposed rule is based on concerns about the use of designations that falsely convey a certain expertise in matters dealing with seniors and their special needs. The Division specifically cited the example of using the designation "Certified Elder Planning Specialists" ("CEPS") as misleading and a method to disguise that the associate was an insurance agent.
Under this regulation, professional designations that are the result of a meaningful educational or training process would be exempted from the prohibition. For more information about the proposed professional designation rule for Massachusetts, pleas click here.
According to the Division, this proposed rule is based on concerns about the use of designations that falsely convey a certain expertise in matters dealing with seniors and their special needs. The Division specifically cited the example of using the designation "Certified Elder Planning Specialists" ("CEPS") as misleading and a method to disguise that the associate was an insurance agent.
Under this regulation, professional designations that are the result of a meaningful educational or training process would be exempted from the prohibition. For more information about the proposed professional designation rule for Massachusetts, pleas click here.
Labels: Advertising
posted by bhill at 9:37 AM
