Category Archives: Investment Advisor Registration
 

Nebraska Private Fund Adviser Exemption

May 17, 2016

On May 11, 2016, the Securities Bureau of the Nebraska Department of Banking and Finance (NDBF) adopted a new administrative rule that excludes investment advisers to private funds from the definition of “investment adviser”. This means that an investment adviser who solely advises private funds will not be subject to Nebraska’s investment adviser books and records requirements among other requirements for state registered investment advisers.

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NASAA Announces IARD System Process Fee Waiver for State Registered Investment Adviser Firms

November 05, 2015

The North American Securities Administrators Association (NASAA) announced that the Investment Adviser Registration Depository System (IARD), the national database sponsored by NASAA and the U.S. Securities and Exchange Commission (SEC) that provides investment adviser firms and their investment adviser representatives a single source for filing state and SEC investment adviser registration and notice filings, will waive the IARD system processing fees for state registered investment adviser firms in 2016. While waiving IARD system processing fees for state registered investment adviser firms in 2016, NASAA will continue charging a $10 IARD system processing fee for each investment adviser representative (IAR).

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SEC Initiates Enforcement Action against an Investment Adviser for Improperly Registering with SEC Based upon Alleged Misrepresentations of Principal Office and Place of Business in Wyoming

February 07, 2015

To the extent your investment adviser firm claims that its principal office and place of business is located in Wyoming and therefore eligible for registration with U.S. Securities and Exchange Commission (“SEC”) regardless of the amount of assets under management since the State of Wyoming does not register investment advisers, you should pay close attention to a recent SEC administrative proceeding. The SEC found that the sole investment adviser representative/owner of the investment adviser firm resided in another state where he maintained a home office and operated as his primary base.  The investment adviser representative/owner utilized the Wyoming offices on an infrequent basis and did not generally direct, control or coordinate activities from Wyoming.  Consequently, the SEC found the investment adviser firm violated Section 203A of the Investment Advisers Act of 1940 by improperly registering with the SEC based upon its misrepresentations that the investment adviser firm’s principal office and place of business was in Wyoming.  The SEC ordered the investment adviser to cease and desist, censured the investment adviser firm, fined the investment adviser in the amount of $10,000 and required the investment adviser to establish its principal office and place of business in Wyoming and provide evidence thereof.

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Did your Investment Adviser Firm Renew its Registration or Notice Filing for 2015?

January 03, 2015

Now that we are into a new year, can you confirm your registered investment adviser firm and its investment adviser representatives were properly renewed for 2015? Every year there are always a handful of investment adviser firms that fail to submit renewal fees through the IARD system in a timely fashion. Therefore, even if you think the renewal payment was sent in time, please make sure your investment adviser firm retrieves the Final Renewal Statement and confirms it is renewed for calendar year 2015.

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How Much Will It Cost to Register an Investment Adviser?

February 10, 2013

When an individual is considering whether to start a registered investment adviser, a primary concern is how much will it cost to set-up an investment adviser firm.  The set-up expenses can vary greatly depending upon whether the firm will need to register as an investment adviser with the U.S. Securities Exchange Commission (“SEC”) or with the state securities regulator, the size of the investment adviser, the complexity of the proposed investment adviser’s business model, and the conflict or potential conflict of interest situations that will exist.  An individual looking to register as an investment adviser will not only need to take into consideration the cost involved in the actual investment adviser registration process but will also need to consider the cost of getting the appropriate office set-up and systems in place as well as any staffing related costs.

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Are Fingerprints Required When an RIA Registers an Investment Adviser Representative?

December 09, 2012

If an investment adviser representative was previously licensed as a registered representative/securities agent with a broker/dealer through the Web CRD system, the state securities regulator should be able to access fingerprint information already on file. Also, if an investment adviser representative was previously licensed with another investment advisor firm, the state securities regulator will generally not require a new fingerprint card. It should be noted that many state securities regulators do not even require a fingerprint card, so it is important you check with the state securities regulator prior to completing a fingerprint card.

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State Registered Investment Advisors Can Choose to Notice File or Register with the Texas State Securities Board

September 12, 2012

State registered investment advisors located outside of Texas but conducting business with at least one client residing in Texas and less than six Texas residents can choose whether they would rather notice file or register with the Texas State Securities Board, the state securities regulator in Texas. The fee to notice file or register is the same, but if the state registered investment advisor chooses to notice file, there is less paperwork and the process is completed more quickly.

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Mid-Sized Investment Advisers Required to Register with the SEC Rather than New York Investor Protection Bureau

August 31, 2012

New York City houses one of the financial epicenters of the world so many may find it surprising that investment advisers with their principal office and place of business in New York are not subject to an examination by the New York Investor Protection Bureau.  The New York Investor Protection Bureau is charged with enforcing the New York State securities laws and requires investment advisers to register with the New York Attorney General’s Office.  Because the New York Investor Protection Bureau does not conduct examinations of investment advisers with a principal office and place of business who are registered with the New York Attorney General’s Office, the U.S. Securities and Exchange Commission (“SEC”) will handle the registration and examination of mid-sized investment advisers (investment advisers with between $25 million and $100 million of assets under management) with a principal office or place of business in New York.

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Kansas and Louisiana Securities Regulators Require Submission of Written Supervisory Procedures When Registering as an Investment Adviser

August 27, 2012

A firm that wants to register as an investment adviser must at a minimum prepare and file the Form ADV through the Investment Adviser Registration Depository (“IARD”) system.  When registering as an investment adviser with a state securities regulator, an investment adviser is typically required to submit additional documentation directly to the state securities regulator.  An investment adviser applicant seeking registration with a state securities regulator should review the investment adviser registration requirements for each particular state where the investment adviser applicant is required to register since the requirements typically vary from state to state.

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