Did your Firm Renew for 2010? Don't Forget About Form ADV Annual Amendments
Now that we are into a new year, can you confirm your registered investment advisor and its advisor representatives were properly renewed for 2010? Every year there are always a handful of 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 firm retrieves the Final Renewal Statement and confirms it is renewed for calendar year 2010.
The Final Renewal Statement will indicate one of the following.
Paid in Full - If your firm's renewal statement has been paid in full, the renewal process is complete. You should print a copy of the Final Renewal Statement and file it with your firm's books and records.
Outstanding Balance Due or Refund - If your firm paid its Preliminary Renewal Statement in full, but added or removed a state registration or advisor representative during the time period between the posting of Preliminary Renewal Statements and the 2009 shut down period, then your firm will either have additional fees due or receive a credit. If additional fees are due, the fees should be submitted as soon as possible, but must be posted by February 5, 2010. If your firm received a refund, the credit will automatically be transferred to your firm's Daily Account.
Failed to Renew - If a firm's Final Renewal Statement indicates Failed to Renew, FINRA did not receive the total balance due on the Preliminary Renewal Statement prior to the December deadline. In these cases, it is standard operating procedure for FINRA to automatically terminate all advisor representatives of the firm. In addition, over thirty states have given FINRA the authority to automatically terminate a registered investment advisor that does not pay its renewal fees in full. If your firm's statement indicates Failed to Renew, you will need to contact each state jurisdiction immediately to determine an appropriate course of action.
It is important to make sure your registered investment advisor submits all required documentation directly to the states where the firm is registered. If your firm failed to renew through IARD, it is important to take immediate action to rectify the situation. Give us a call to find out more about our re- registration services and pricing.
In addition to confirming your firm's registration renewal for 2010, we would like to remind registered investment advisors of their responsibility to prepare and file their Form ADV Part 1 Annual Amendment. The Annual Amendment must be filed no later than 90 days after a registered investment advisor firm's fiscal year ends. Many registered investment advisors use December 31 as their fiscal year end which results in a March 30, 2010 deadline to submit the Annual Amendment through the IARD system. The Annual Amendment is used to update information such as number of clients, number of accounts, and assets under management. We recommend registered investment advisors closely review the entire Form ADV to confirm all information is correct.
SEC registered firms should be aware that the SEC and FINRA have reinstated the annual IARD Firm System Processing Fee. The fee is assessed for the electronic filing of forms on the IARD system. The IARD Firm System Processing Fee is separate from applicable state Notice Filing fees. It must be paid by SEC registered firm when filing the Annual Amendment. Firms can begin working on the Annual Amendment, but will need to fund their IARD Daily Account before they can submit the Annual Amendment.
Please refer to the following schedule to determine your firm's annual fee and submit payment to your firm's IARD Daily Account. Be sure to fund the Daily Account; do not fund the Renewal Account: (a) for assets under management of less than $25 million, there's a fee of $40; (b) for assets under management between $25 million and $100 million, there's a fee of $150; and (c) for assets under management over $100 million, there's a fee of $200.
Please contact RIA Compliance Consultants, Inc. if you are interested in our Form ADV Annual Amendment services. We would also like to invite you to attend our upcoming webinar on January 14, "Preparing the Form ADV Part 1 Annual Amendment". The registration fee for our webinar is $59.95. During this webinar, RIA Compliance Consultants will discuss the items that must be updated as part of the Form ADV Part 1 Annual Amendment including how securities regulators expect a registered investment advisor to calculate assets under management. In addition, we will review common mistakes when preparing the Form ADV Part 1 Annual Amendment. Finally, we will cover some common examples of material changes that should have been updated to your Form ADV during the past year.
The Final Renewal Statement will indicate one of the following.
Paid in Full - If your firm's renewal statement has been paid in full, the renewal process is complete. You should print a copy of the Final Renewal Statement and file it with your firm's books and records.
Outstanding Balance Due or Refund - If your firm paid its Preliminary Renewal Statement in full, but added or removed a state registration or advisor representative during the time period between the posting of Preliminary Renewal Statements and the 2009 shut down period, then your firm will either have additional fees due or receive a credit. If additional fees are due, the fees should be submitted as soon as possible, but must be posted by February 5, 2010. If your firm received a refund, the credit will automatically be transferred to your firm's Daily Account.
Failed to Renew - If a firm's Final Renewal Statement indicates Failed to Renew, FINRA did not receive the total balance due on the Preliminary Renewal Statement prior to the December deadline. In these cases, it is standard operating procedure for FINRA to automatically terminate all advisor representatives of the firm. In addition, over thirty states have given FINRA the authority to automatically terminate a registered investment advisor that does not pay its renewal fees in full. If your firm's statement indicates Failed to Renew, you will need to contact each state jurisdiction immediately to determine an appropriate course of action.
It is important to make sure your registered investment advisor submits all required documentation directly to the states where the firm is registered. If your firm failed to renew through IARD, it is important to take immediate action to rectify the situation. Give us a call to find out more about our re- registration services and pricing.
In addition to confirming your firm's registration renewal for 2010, we would like to remind registered investment advisors of their responsibility to prepare and file their Form ADV Part 1 Annual Amendment. The Annual Amendment must be filed no later than 90 days after a registered investment advisor firm's fiscal year ends. Many registered investment advisors use December 31 as their fiscal year end which results in a March 30, 2010 deadline to submit the Annual Amendment through the IARD system. The Annual Amendment is used to update information such as number of clients, number of accounts, and assets under management. We recommend registered investment advisors closely review the entire Form ADV to confirm all information is correct.
SEC registered firms should be aware that the SEC and FINRA have reinstated the annual IARD Firm System Processing Fee. The fee is assessed for the electronic filing of forms on the IARD system. The IARD Firm System Processing Fee is separate from applicable state Notice Filing fees. It must be paid by SEC registered firm when filing the Annual Amendment. Firms can begin working on the Annual Amendment, but will need to fund their IARD Daily Account before they can submit the Annual Amendment.
Please refer to the following schedule to determine your firm's annual fee and submit payment to your firm's IARD Daily Account. Be sure to fund the Daily Account; do not fund the Renewal Account: (a) for assets under management of less than $25 million, there's a fee of $40; (b) for assets under management between $25 million and $100 million, there's a fee of $150; and (c) for assets under management over $100 million, there's a fee of $200.
Please contact RIA Compliance Consultants, Inc. if you are interested in our Form ADV Annual Amendment services. We would also like to invite you to attend our upcoming webinar on January 14, "Preparing the Form ADV Part 1 Annual Amendment". The registration fee for our webinar is $59.95. During this webinar, RIA Compliance Consultants will discuss the items that must be updated as part of the Form ADV Part 1 Annual Amendment including how securities regulators expect a registered investment advisor to calculate assets under management. In addition, we will review common mistakes when preparing the Form ADV Part 1 Annual Amendment. Finally, we will cover some common examples of material changes that should have been updated to your Form ADV during the past year.
Labels: Annual Amendment, Form ADV, IARD
posted by bhill at 9:35 AM
2010 IARD Renewal & Form ADV Annual Amendment Requirements
Beginning Monday, November 16, 2009, registered investment advisor firms can access their 2010 Preliminary Renewal Statements via their IARD account. The Preliminary Renewal Statement must be paid, in full, by Friday, December 11, 2009. Because it takes approximately two days for payment to post to the IARD account, the funds should arrive no later than Wednesday, December 09, 2009, to ensure the money is posted to your IARD account by December 11.
RIA Compliance Consultants also wants to remind registered investment advisor firms of their obligation to update Form ADV on at least an annual basis in the form of an Annual Amendment. This is required under U.S. Securities and Exchange Commission ("SEC") Rule 204-1 of the Investment Advisers Act of 1940 and similar rules of state securities regulators. The Form ADV Annual Amendment must be completed within 90 days after a registered investment advisor firm's fiscal year end. Since the majority of investment advisor firms coordinate their fiscal year end with the end of the calendar year, the Form ADV Annual Amendment has become a requirement that must be completed at the beginning of each year for most advisor firms. The main item that must be updated on the Form ADV Annual Amendment is the investment advisor firm's assets under management. Other items such as, but not limited to, the number of accounts, clients, employees, and investment advisor representatives ("IARs") should also be updated. The Form ADV 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 contact information, changes to custody disclosures and changes due to successions and ownership arrangements.
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 $450, 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 2010. You will also receive an Annual Amendment Questionnaire for you to complete so that we may prepare and file your Form ADV Part 1 Annual Amendment within the necessary time frame.
Engagements received by RIA Compliance Consultants after November 16 are subject to availability so complete and return the Agreement for Services today! Click below to view the Consulting Agreement for IARD Renewal and Annual Amendment Services.
*If you are an existing hourly retainer client of RIA Compliance Consultants, you do not need to complete the Agreement for Services. Simply contact your lead consultant to sign-up for this service.
**If you are an annual retainer client of RIA Compliance Consultants, this service is included in your retainer agreement. To learn more about our retainer services and fees, please contact us at 877-345-4034.
IARD%20Renewal.Annual%20Amendment.2010.pdf
RIA Compliance Consultants also wants to remind registered investment advisor firms of their obligation to update Form ADV on at least an annual basis in the form of an Annual Amendment. This is required under U.S. Securities and Exchange Commission ("SEC") Rule 204-1 of the Investment Advisers Act of 1940 and similar rules of state securities regulators. The Form ADV Annual Amendment must be completed within 90 days after a registered investment advisor firm's fiscal year end. Since the majority of investment advisor firms coordinate their fiscal year end with the end of the calendar year, the Form ADV Annual Amendment has become a requirement that must be completed at the beginning of each year for most advisor firms. The main item that must be updated on the Form ADV Annual Amendment is the investment advisor firm's assets under management. Other items such as, but not limited to, the number of accounts, clients, employees, and investment advisor representatives ("IARs") should also be updated. The Form ADV 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 contact information, changes to custody disclosures and changes due to successions and ownership arrangements.
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 $450, 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 2010. You will also receive an Annual Amendment Questionnaire for you to complete so that we may prepare and file your Form ADV Part 1 Annual Amendment within the necessary time frame.
Engagements received by RIA Compliance Consultants after November 16 are subject to availability so complete and return the Agreement for Services today! Click below to view the Consulting Agreement for IARD Renewal and Annual Amendment Services.
*If you are an existing hourly retainer client of RIA Compliance Consultants, you do not need to complete the Agreement for Services. Simply contact your lead consultant to sign-up for this service.
**If you are an annual retainer client of RIA Compliance Consultants, this service is included in your retainer agreement. To learn more about our retainer services and fees, please contact us at 877-345-4034.
IARD%20Renewal.Annual%20Amendment.2010.pdf
Labels: Annual Amendment, Form ADV, IAR Licensing, IARD, Renewals
posted by bhill at 8:24 PM
IARD System Fee Waiver
In a joint statement issued last week, the SEC and NASAA announced that they will continue the waiver of the IARD initial and annual system fees applied to registered investment advisor firms. The fee waiver will continue through July 31, 2009. NASAA also announced a waiver of the annual $30 system fee for investment adviser representatives. Initial fees for investment adviser representatives will be waived beginning January 1, 2009 and go through December 31, 2009. The fee waiver does not apply to state registration and licensing fees. States will continue to collect initial and annual fees for firms and representatives via the IARD system. Preliminary Annual Renewal Statements which detail the state fees charged to registered investment advisers will be available via IARD on Monday, November 10.
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 $450, 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 2009. You will also receive an Annual Amendment Questionnaire for you to 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 the Agreement for Services.
*If you are an existing RIA Compliance Consultants hourly retainer client, you do not need to complete the Agreement for Services. Simply contact your lead consultant to sign-up for this service.
**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 877-345-4034.
posted by bhill at 4:50 PM
2009 IARD Annual Renewal and Form ADV Annual Amendment Requirements
Beginning Monday, November 10, 2008, investment advisor firms can access their 2009 Preliminary Renewal Statements via their IARD account. The Preliminary Renewal Statement must be paid, in full, by Friday, December 12, 2008. Because it takes approximately two days for payment to post to the IARD account, the funds should arrive no later than Wednesday, December 10, 2008, to ensure the money is posted to your IARD account by the 12th.
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 $450, 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 2009. You will also receive an Annual Amendment Questionnaire for you to 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 the Agreement for Services.
*If you are an existing RIA Compliance Consultants hourly retainer client, you do not need to complete the Agreement for Services. Simply contact your lead consultant to sign-up for this service.
**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 877-345-4034.
Labels: Annual Amendment, Form ADV, IAR Licensing, IARD, Renewals
posted by bhill at 10:54 AM
Form ADV Part 1 Annual Amendments for Fiscal Year Ended December 2007
This is a reminder to all registered investment advisors with a fiscal year end of December 2007. Your Form ADV Part 1 Annual Amendment must be submitted through Web CRD/IARD system no later than ninety (90) days after your registered investment advisor firm’s fiscal year end. Because March 30th falls on a Sunday this year, in order to avoid any potential late filings, the Annual Amendment should be submitted on Friday, March 28.
An Annual Amendment to Part 1 of Form ADV is required under Rule 204-1 of the Investment Advisers Act of 1940 and similar state rules. The main item that must be updated on the Annual Amendment is the firm's assets under management (Form ADV Part 1A, Item 5.F.). 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 promptly, 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, Inc. (RCC) provides various levels of Form ADV drafting and review services including assistance with the preparation and submission of the Form ADV Part 1 Annual Amendment. RCC can help you understand the information required on the Form ADV and provide an analysis of the adequacy of your registered investment advisor’s Form ADV disclosures. To read our free Form ADV drafting tips, please visit our website. If you are interested in retaining RCC for a Form ADV review, please give us a call.
An Annual Amendment to Part 1 of Form ADV is required under Rule 204-1 of the Investment Advisers Act of 1940 and similar state rules. The main item that must be updated on the Annual Amendment is the firm's assets under management (Form ADV Part 1A, Item 5.F.). 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 promptly, 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, Inc. (RCC) provides various levels of Form ADV drafting and review services including assistance with the preparation and submission of the Form ADV Part 1 Annual Amendment. RCC can help you understand the information required on the Form ADV and provide an analysis of the adequacy of your registered investment advisor’s Form ADV disclosures. To read our free Form ADV drafting tips, please visit our website. If you are interested in retaining RCC for a Form ADV review, please give us a call.
Labels: Annual Amendment, Form ADV, IARD
posted by bhill at 12:51 PM
Minnesota, North Dakota, and South Dakota Require Use of IARD to Post Form ADV Part II
RIA Compliance Consultants, Inc. continues to follow the implementation of Form ADV Part II functionality on IARD, and we have learned that three more states require state registered investment advisors to post the Form ADV Part II on IARD.
While no deadline has been to set to post an investment advisor's existing Form ADV Part II online, South Dakota is now requiring all updates to Part II be filed through IARD. State registered investment advisor firms in South Dakota should no longer deliver copies by mail as all amendments must be posted through IARD.
North Dakota delivered an e-mail last quarter informing its registered investment advisor firms of the new IARD functionality. Similar to South Dakota, North Dakota did not set a required deadline but is encouraging registered investment advisors to post their Part II at the firm’s earliest convenience. A deadline is expected later this year.
Minnesota registered investment advisor firms are also required to now post Form ADV Part II online. Minnesota is not expected to issue its own notice to firms but is relying on the NASAA press release which was issued in April. Minnesota firms should post their Part IIs as their earliest convenience.
For a low fixed fee of $97.50, RIA Compliance Consultants, Inc. will ensure your Form ADV Part II is posted online by the appropriate deadline in a format that meets all required standards. In addition to ensuring your Part II is posted in the proper manner, your registered investment advisor firm can also retain us under a separate engagement to conduct a thorough review of your entire Form ADV and provide your firm with an objective review of the document.
While no deadline has been to set to post an investment advisor's existing Form ADV Part II online, South Dakota is now requiring all updates to Part II be filed through IARD. State registered investment advisor firms in South Dakota should no longer deliver copies by mail as all amendments must be posted through IARD.
North Dakota delivered an e-mail last quarter informing its registered investment advisor firms of the new IARD functionality. Similar to South Dakota, North Dakota did not set a required deadline but is encouraging registered investment advisors to post their Part II at the firm’s earliest convenience. A deadline is expected later this year.
Minnesota registered investment advisor firms are also required to now post Form ADV Part II online. Minnesota is not expected to issue its own notice to firms but is relying on the NASAA press release which was issued in April. Minnesota firms should post their Part IIs as their earliest convenience.
For a low fixed fee of $97.50, RIA Compliance Consultants, Inc. will ensure your Form ADV Part II is posted online by the appropriate deadline in a format that meets all required standards. In addition to ensuring your Part II is posted in the proper manner, your registered investment advisor firm can also retain us under a separate engagement to conduct a thorough review of your entire Form ADV and provide your firm with an objective review of the document.
posted by bhill at 11:27 AM
Attention State Registered Investment Advisors - Deadline to Post Form ADV Part II on IARD
In a previous blog this month, RIA Compliance Consultants, Inc., told you about the IARD/Web CRD’s new functionality allowing registered investment advisors to post their Form ADV Part II online. According to an e-mail sent from the California Securities Regulation Division, any amendments to Form ADV Part II after April 24 should now be posted directly on the IARD system. All California registered investment advisors must post their current Form ADV Part II directly with IARD within 60 days after April 24. The Virginia Division of Securities and Retail Franchising also issued an e-mail, dated April 26, 2007, requiring state registered firms to post their Form ADV Part II online as well.
In the time since our original blog on this topic, the Florida Office of Financial Regulation issued a letter dated May 23, 2007. According to the letter, all registered investment advisors in Florida must eventually submit the Form ADV Part II online and are strongly encouraged to transition their existing Form ADV part II onto the IARD system within sixty days of May 23.
The Massachusetts Securities Division has also issued a deadline for state registered investment advisors to submit Part II online. According to a May 21, 2007 press release, state registered investment advisors have until September 1 to submit their Part II on IARD. However, all amendments to Part II made before September 1 must be filed through IARD.
Also, the Texas State Securities Board and the Office of the Kansas Securities Commissioner are now requiring all new registered investment advisor applicants to submit Form ADV Part II through IARD, and current registered firms may submit Part II at their convenience.
If your investment advisor firm is registered at the state level, you should be on the lookout for notices or e-mails requiring you to submit the Form ADV Part II through IARD. If your registered investment advisor firm is located in California, Florida, Massachusetts, Virginia, Texas, Kansas or another state that already requires the posting of Part II on IARD, give us a call. For a low fixed fee of $97.50, RIA Compliance Consultants, Inc., will ensure your Part II is posted online by the appropriate deadline in a format that meets all required standards. In addition to ensuring your Form ADV Part II is posted in the proper manner, your investment advisor firm can also retain us under a separate engagement to conduct a thorough review of your entire Form ADV and provide your firm with an objective review of the document. Not only is the Form ADV an application document, it also serves as the disclosure document that must be provided to all clients. A well-written Form ADV should not only provide clients with a description of all advisory services and fees, but it should also be used to protect registered investment advisors. The Form ADV is the primary document to disclose conflicts of interest, material considerations, business arrangements, and all background information regarding the investment advisor firm and its associates.
In the time since our original blog on this topic, the Florida Office of Financial Regulation issued a letter dated May 23, 2007. According to the letter, all registered investment advisors in Florida must eventually submit the Form ADV Part II online and are strongly encouraged to transition their existing Form ADV part II onto the IARD system within sixty days of May 23.
The Massachusetts Securities Division has also issued a deadline for state registered investment advisors to submit Part II online. According to a May 21, 2007 press release, state registered investment advisors have until September 1 to submit their Part II on IARD. However, all amendments to Part II made before September 1 must be filed through IARD.
Also, the Texas State Securities Board and the Office of the Kansas Securities Commissioner are now requiring all new registered investment advisor applicants to submit Form ADV Part II through IARD, and current registered firms may submit Part II at their convenience.
If your investment advisor firm is registered at the state level, you should be on the lookout for notices or e-mails requiring you to submit the Form ADV Part II through IARD. If your registered investment advisor firm is located in California, Florida, Massachusetts, Virginia, Texas, Kansas or another state that already requires the posting of Part II on IARD, give us a call. For a low fixed fee of $97.50, RIA Compliance Consultants, Inc., will ensure your Part II is posted online by the appropriate deadline in a format that meets all required standards. In addition to ensuring your Form ADV Part II is posted in the proper manner, your investment advisor firm can also retain us under a separate engagement to conduct a thorough review of your entire Form ADV and provide your firm with an objective review of the document. Not only is the Form ADV an application document, it also serves as the disclosure document that must be provided to all clients. A well-written Form ADV should not only provide clients with a description of all advisory services and fees, but it should also be used to protect registered investment advisors. The Form ADV is the primary document to disclose conflicts of interest, material considerations, business arrangements, and all background information regarding the investment advisor firm and its associates.
posted by bhill at 11:34 AM
IARD Form ADV Part II Functionality Goes Live for Registered Investment Advisors
With IARD/Web CRD Release 9.0, the NASD implemented several changes that went into effect on April 23, 2007. The most significant of these changes is the ability for registered investment advisor firms to post their Form ADV Part II online. This new update has not received the widespread media coverage that the release of the new Form ADV Part II will certainly see, but its implementation is significant. With the new functionality, the general public is now able to view registered investment advisor firm disclosure brochures through the Investment Adviser Public Disclosure site (www.adviserinfo.sec.gov).
In response to the NASD's release, the U.S. Securities & Exchange Commission's official position is that posting the Form ADV Part II is neither encouraged nor discouraged. In other words, at this time SEC registered investment advisor firms can certainly post their Form ADV Part II online, but a mandatory deadline has not been set. On the other hand, at least two states have mandated the use of this functionality. According to an e-mail sent from the California Securities Regulation Division, any amendments to Form ADV Part II after April 24 should now be posted directly on the IARD system. All California registered investment advisor firms must post their current Form ADV Part II directly with IARD within 60 days after April 24. The Virginia Division of Securities and Retail Franchising also issued an e-mail, dated April 26, 2007, requiring state registered firms to post their Form ADV Part II online as well.
If your investment advisor firm is registered at the state level, be on the lookout for notices or e-mails requiring you to submit the Form ADV Part II through IARD. Also, stay tuned to our website as we will continue to post updates to this new requirement when they become available. If you are registered with a state that requires the posting of Part II on IARD, give us a call to find out how we can assist your investment advisor firm in complying with the new rule. In addition to ensuring your Form ADV Part II is posted in the proper manner, we also can conduct a thorough review of your entire Form ADV and provide your investment advisor firm with an objective review of the document.
In response to the NASD's release, the U.S. Securities & Exchange Commission's official position is that posting the Form ADV Part II is neither encouraged nor discouraged. In other words, at this time SEC registered investment advisor firms can certainly post their Form ADV Part II online, but a mandatory deadline has not been set. On the other hand, at least two states have mandated the use of this functionality. According to an e-mail sent from the California Securities Regulation Division, any amendments to Form ADV Part II after April 24 should now be posted directly on the IARD system. All California registered investment advisor firms must post their current Form ADV Part II directly with IARD within 60 days after April 24. The Virginia Division of Securities and Retail Franchising also issued an e-mail, dated April 26, 2007, requiring state registered firms to post their Form ADV Part II online as well.
If your investment advisor firm is registered at the state level, be on the lookout for notices or e-mails requiring you to submit the Form ADV Part II through IARD. Also, stay tuned to our website as we will continue to post updates to this new requirement when they become available. If you are registered with a state that requires the posting of Part II on IARD, give us a call to find out how we can assist your investment advisor firm in complying with the new rule. In addition to ensuring your Form ADV Part II is posted in the proper manner, we also can conduct a thorough review of your entire Form ADV and provide your investment advisor firm with an objective review of the document.
posted by bhill at 2:20 PM
Did your firm renew for 2007?
Now that renewal season is over, can you confirm your firm and its advisor representatives were properly renewed for 2007? It seems like every year there are always a handful of 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 firm retrieves the Final Renewal Statement and confirms it is renewed from 2007. The Final Renewal Statement will indicate one of the following.
1. Paid in Full - If your firm's renewal statement has been paid in full, your renewal process is complete. You should print a copy of the Final Renewal Statement and file it with your firm's books and records.
2. Outstanding Balance Due or Refund - If your firm paid its Preliminary Renewal Statement in full, but added or removed a state registration or advisor representative during the time period between the posting of Preliminary Renewal Statements and the 2006 shut down period, then your firm will either have additional fees due or receive a credit. If additional fees are due, the fees should be submitted as soon as possible. If your firm received a refund, the credit will automatically be transferred to your firm's Daily Account.
3. Failed to Renew - If a firm's Final Renewal Statement indicates Failed to Renew, the NASD did not receive the total balance due on the Preliminary Renewal Statement prior to the December deadline. In these cases, it is standard operating procedure for the NASD to automatically terminate all advisor representatives of the firm. In addition, over thirty states have given the NASD the authority to automatically terminate an advisor firm that does not pay its renewal fees in full. If your firm's statement indicates Failed to Renew, you will need to contact each state jurisdiction immediately to determine an appropriate course of action.
Finally, it is important to make sure your firm submits any required documentation directly to the states where the firm is registered.
If your firm did fail to renew through IARD system or you have questions on any state renewal requirements, call us immediately so we can provide assistance to get your firm in good standing.
1. Paid in Full - If your firm's renewal statement has been paid in full, your renewal process is complete. You should print a copy of the Final Renewal Statement and file it with your firm's books and records.
2. Outstanding Balance Due or Refund - If your firm paid its Preliminary Renewal Statement in full, but added or removed a state registration or advisor representative during the time period between the posting of Preliminary Renewal Statements and the 2006 shut down period, then your firm will either have additional fees due or receive a credit. If additional fees are due, the fees should be submitted as soon as possible. If your firm received a refund, the credit will automatically be transferred to your firm's Daily Account.
3. Failed to Renew - If a firm's Final Renewal Statement indicates Failed to Renew, the NASD did not receive the total balance due on the Preliminary Renewal Statement prior to the December deadline. In these cases, it is standard operating procedure for the NASD to automatically terminate all advisor representatives of the firm. In addition, over thirty states have given the NASD the authority to automatically terminate an advisor firm that does not pay its renewal fees in full. If your firm's statement indicates Failed to Renew, you will need to contact each state jurisdiction immediately to determine an appropriate course of action.
Finally, it is important to make sure your firm submits any required documentation directly to the states where the firm is registered.
If your firm did fail to renew through IARD system or you have questions on any state renewal requirements, call us immediately so we can provide assistance to get your firm in good standing.
posted by bhill at 11:45 AM
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
SEC and NASSA Continue IARD System Fee Waiver
As the 2007 IARD Annual Renewal Season quickly approaches, there is good news for investment advisor firms. The SEC and NASAA announced last week that they will continue to waive the annual IARD system fees paid by investment advisor firms for the next two years. The two bodies also announced a waiver of initial set-up fees for new advisors filing through Web CRD/IARD. Prior to this announcement, initial fees ranged from $150 - $1,100 and $100 - $550 annually, depending on the amount of the firm's assets under management.
In addition to the waiver of firm fees, NASAA also announced the reduction of IAR initial and renewal fees. The fees are being reduced from $45 per IAR to $30 IAR.
*Please note this waiver does not apply to state filing fees which are collected through Web CRD/IARD.
This is certainly good news as regulators attempt to lighten the load of the cost of doing business as an investment advisor. To read the official press release click here.
To read more about the 2007 IARD Annual Renewal Season and our special Annual Renewal Service, please visit our website.
In addition to the waiver of firm fees, NASAA also announced the reduction of IAR initial and renewal fees. The fees are being reduced from $45 per IAR to $30 IAR.
*Please note this waiver does not apply to state filing fees which are collected through Web CRD/IARD.
This is certainly good news as regulators attempt to lighten the load of the cost of doing business as an investment advisor. To read the official press release click here.
To read more about the 2007 IARD Annual Renewal Season and our special Annual Renewal Service, please visit our website.
Labels: IARD
posted by bhill at 4:24 PM
2007 IARD Annual Renewal and Form ADV Annual Amendment Requirements
Beginning 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.
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.
Please contact us today to receive an agreement for our services. Note: Engagements received after November 15 are subject to availability.
*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.
Please contact us today to receive an agreement for our services. Note: Engagements received after November 15 are subject to availability.
*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 2:14 PM
END OF YEAR COMPLIANCE - Part 1
Recently, we have posted several blogs about the IARD renewal season. In addition to paying renewal fees each year, there are a number of other annual requirements that must be completed by investment advisor firms. The end of the calendar year is a good time to discuss some of those different compliance requirements. This entry is the first in a series of blogs that we will post discussing some of the annual requirements.
It's critical that the completion of these annual requirements for investment advisors is well documented. It is very hard to prove to a regulator that an advisor firm has completed a requirement when there is no documentation. For example, any time you submit a form to a regulator be sure to keep a copy of the form and the documentation used to prepare the form. Likewise, it is important to document anything that is delivered to clients.
Form ADV Offer - All advisor firms are required to offer a copy of their Form ADV or disclosure brochure to all clients on an annual basis. The annual offer does not need to be at the end of year; however, it should be made at approximately the same time each year for consistency. Again, documentation of this requirement is essential. Some advisor firms elect to keep a copy of each client's annual offer in the client's file. Other advisor firms elect to keep a sample, dated copy of the annual offer letter along with a list of all clients the offer was sent to and a list of all clients that requested a copy of Form ADV or disclosure brochure. Keep in mind if a client requests a copy of the Form ADV or disclosure brochure, the SEC requires that delivery be made within seven days. Most states also require delivery to be made within a certain time frame.
Customer Privacy Policy Statement - A similar, albeit newer, requirement is the annual delivery of the firm's customer privacy policy statement. In addition to providing a copy of the firm's privacy statement to all clients upon entering into a contract, regulators also require advisor firms to provide a complete copy of the privacy statement to clients on an annual basis. Many firms have begun to incorporate the customer privacy policy statement with the annual Form ADV offer. Again, the key here is to document the delivery by keeping a log of each client that receives the statement, when the statement was sent, and a copy of the statement.
IARD Administrative Functions - The end of the year is a great time to make sure your advisor firm's IARD administrator and user accounts are up-to-date. Maybe an account administrator left your firm this year or maybe someone listed as an IARD user no longer needs to have access to the account. This is a good time to make sure only those within the firm that need access to the IARD system, have access. If a former employee still has an account, make sure the account has been disabled and terminated. Likewise, make sure that all current administrators and users know their user names and have functioning passwords.
The items listed here are definitely not all inclusive of the requirements your firm may need to complete. Each advisor firm should be aware of its regulatory requirements based on the firm's general business procedures and regulatory authority. This entry is the first in a series of annual requirement blogs that we will post so stay tuned to the RIA Compliance Consultants website. If your firm has questions or concerns about one of the items listed in this entry, please give us a call.
It's critical that the completion of these annual requirements for investment advisors is well documented. It is very hard to prove to a regulator that an advisor firm has completed a requirement when there is no documentation. For example, any time you submit a form to a regulator be sure to keep a copy of the form and the documentation used to prepare the form. Likewise, it is important to document anything that is delivered to clients.
Form ADV Offer - All advisor firms are required to offer a copy of their Form ADV or disclosure brochure to all clients on an annual basis. The annual offer does not need to be at the end of year; however, it should be made at approximately the same time each year for consistency. Again, documentation of this requirement is essential. Some advisor firms elect to keep a copy of each client's annual offer in the client's file. Other advisor firms elect to keep a sample, dated copy of the annual offer letter along with a list of all clients the offer was sent to and a list of all clients that requested a copy of Form ADV or disclosure brochure. Keep in mind if a client requests a copy of the Form ADV or disclosure brochure, the SEC requires that delivery be made within seven days. Most states also require delivery to be made within a certain time frame.
Customer Privacy Policy Statement - A similar, albeit newer, requirement is the annual delivery of the firm's customer privacy policy statement. In addition to providing a copy of the firm's privacy statement to all clients upon entering into a contract, regulators also require advisor firms to provide a complete copy of the privacy statement to clients on an annual basis. Many firms have begun to incorporate the customer privacy policy statement with the annual Form ADV offer. Again, the key here is to document the delivery by keeping a log of each client that receives the statement, when the statement was sent, and a copy of the statement.
IARD Administrative Functions - The end of the year is a great time to make sure your advisor firm's IARD administrator and user accounts are up-to-date. Maybe an account administrator left your firm this year or maybe someone listed as an IARD user no longer needs to have access to the account. This is a good time to make sure only those within the firm that need access to the IARD system, have access. If a former employee still has an account, make sure the account has been disabled and terminated. Likewise, make sure that all current administrators and users know their user names and have functioning passwords.
The items listed here are definitely not all inclusive of the requirements your firm may need to complete. Each advisor firm should be aware of its regulatory requirements based on the firm's general business procedures and regulatory authority. This entry is the first in a series of annual requirement blogs that we will post so stay tuned to the RIA Compliance Consultants website. If your firm has questions or concerns about one of the items listed in this entry, please give us a call.
posted by bhill at 9:16 PM
Preliminary Renewal Statement Deadline and IARD/CRD System Shutdown
Monday, December 12 is the last day to submit payment to your IARD Renewal Account in order to ensure the necessary fees are received by the NASD and posted to your investment advisor firm's account by Wednesday, December 14, the final deadline to have preliminary renewal fees paid.
According to the NASD, failure to submit payment by this deadline will result in the automatic termination of all investment advisor representatives. In addition, thirty-six states and the District of Columbia are participating in the Automatic Failure to Renew Program for 2006. This means if your firm is registered or notice filed in one of the participating states and your firm fails to pay its renewal fee, the firm's approval status in the participating states will automatically be terminated. Needless to say, it is imperative to submit full payment to the NASD by Monday. Even if changes have been made to your account since the Preliminary Renewal Statement was posted, you must fund the entire amount due on the statement. Adjustments will be reflected on the Final Renewal Statement which will be posted on January, 3, 2006.
Once you have submitted the entire renewal fee due, you need to ensure the fees are posted correctly to your account. You can ensure payment has been received by checking your firm's Renewal Account Summary Activity. The balance should indicate a sufficient status and a negative amount posted. Keep in mind that a negative amount actually indicates a positive amount of money in the account. In the past there have been cases of funds being posted to the Daily Account and not the Renewal Account. There have also been instances where payment has been submitted to the wrong account altogether.
As noted above, the Final Renewal Statement will be posted on January 3, 2006. The Final Renewal Statement will reflect changes that are made from November 21 through December 21 which is the last day electronic Form U4s, Form U5s, Form ADVs, and Form ADV-Ws can be filed for 2005. The IARD/CRD system will reopen on January 3 at which time amendments may be submitted. During the shutdown period, advisor firms will be able to view information on the system and create pending applications; however, the submission functionality will be disabled.
More information about the 2006 Renewal Season can be attained at the IARD website.
According to the NASD, failure to submit payment by this deadline will result in the automatic termination of all investment advisor representatives. In addition, thirty-six states and the District of Columbia are participating in the Automatic Failure to Renew Program for 2006. This means if your firm is registered or notice filed in one of the participating states and your firm fails to pay its renewal fee, the firm's approval status in the participating states will automatically be terminated. Needless to say, it is imperative to submit full payment to the NASD by Monday. Even if changes have been made to your account since the Preliminary Renewal Statement was posted, you must fund the entire amount due on the statement. Adjustments will be reflected on the Final Renewal Statement which will be posted on January, 3, 2006.
Once you have submitted the entire renewal fee due, you need to ensure the fees are posted correctly to your account. You can ensure payment has been received by checking your firm's Renewal Account Summary Activity. The balance should indicate a sufficient status and a negative amount posted. Keep in mind that a negative amount actually indicates a positive amount of money in the account. In the past there have been cases of funds being posted to the Daily Account and not the Renewal Account. There have also been instances where payment has been submitted to the wrong account altogether.
As noted above, the Final Renewal Statement will be posted on January 3, 2006. The Final Renewal Statement will reflect changes that are made from November 21 through December 21 which is the last day electronic Form U4s, Form U5s, Form ADVs, and Form ADV-Ws can be filed for 2005. The IARD/CRD system will reopen on January 3 at which time amendments may be submitted. During the shutdown period, advisor firms will be able to view information on the system and create pending applications; however, the submission functionality will be disabled.
More information about the 2006 Renewal Season can be attained at the IARD website.
posted by bhill at 11:17 AM
Preliminary IARD Renewal Statements
Beginning Monday, November 21, 2005, investment advisor firms can access their 2006 Preliminary Renewal Statements via their IARD account. The Preliminary Renewal Statement must be paid, in full, by Wednesday, December 14, 2005. Because it takes approximately two days for payment to post to the IARD account, the funds should arrive no later than Monday, December 12, 2005, to ensure the money is posted to your IARD account by the 14th.
It is important to note that the NASD does not mail the renewal statements to advisor firms. It is each advisor firm's responsibility to electronically retrieve the renewal statement, review it to confirm its accuracy, and submit payment by the deadline. The entire amount of the Preliminary Renewal Statement must be paid by the 14th even if the statement contains inaccuracies. If the Preliminary Renewal Statement does appear to contain errors, you should contact the IARD Hotline at 240-386-4848 or the state. Any adjustments to the renewal statement will be reflected on the Final Renewal Statement which will be posted on January 2, 2005. Adjustments that reflected on the Final Renewal Statement will also include advisor representatives approved and/or terminated from now until the end of the year. New state registrations/notice filing approvals and withdraws made from now until the end of the year will also be reflected on the Final Renewal Statement.
If the NASD receives only partial payment of the amount due or if payment is received after the December 14 deadline, all advisor representatives with your firm will be automatically terminated. In addition, the majority of states will automatically terminate a firm's notice filing/registration status if full payment is not received. Therefore it is imperative that full payment for the Preliminary Renewal Statement is posted to your IARD Account by the required deadline.
It is important to note that the NASD does not mail the renewal statements to advisor firms. It is each advisor firm's responsibility to electronically retrieve the renewal statement, review it to confirm its accuracy, and submit payment by the deadline. The entire amount of the Preliminary Renewal Statement must be paid by the 14th even if the statement contains inaccuracies. If the Preliminary Renewal Statement does appear to contain errors, you should contact the IARD Hotline at 240-386-4848 or the state. Any adjustments to the renewal statement will be reflected on the Final Renewal Statement which will be posted on January 2, 2005. Adjustments that reflected on the Final Renewal Statement will also include advisor representatives approved and/or terminated from now until the end of the year. New state registrations/notice filing approvals and withdraws made from now until the end of the year will also be reflected on the Final Renewal Statement.
If the NASD receives only partial payment of the amount due or if payment is received after the December 14 deadline, all advisor representatives with your firm will be automatically terminated. In addition, the majority of states will automatically terminate a firm's notice filing/registration status if full payment is not received. Therefore it is imperative that full payment for the Preliminary Renewal Statement is posted to your IARD Account by the required deadline.
posted by bhill at 7:29 PM
IA Branch Office Registration
Does your investment advisor firm have an office location in a state that requires branch office registration? If so, have all of your office locations been properly reported to the appropriate state regulatory office? Depending on whether your firm is SEC or State registered, your firm may need to register its investment advisor office locations in states that require such filings. These requirements are in addition to reporting office locations on the ADV Part I.
Beginning on Monday, October 31, Web CRD will be updated to facilitate the filing of advisor firm branch office filings. In addition, some states will also require branch office renewal fees to be paid through Web CRD. To read the NASAA press release concerning this new Web CRD functionality and view a table of states that will require branch office filings through Web CRD, click here.
Regardless of whether your firm is SEC or state registered, if the firm has a physical office location in a state, the firm will need to be notice filed (if SEC registered) or registered (if at the state level) in that state. A notice filing or registration is also needed for firms that advertise in a state. For states in which an advisor firm simply has clients, the firm must be aware of the state's client de minimus exemption. Of course there are exceptions to these general guidelines and states have different requirements for the licensing of advisor representatives. If you have any questions on where your firm, representatives, or branch offices need to register, give us a call.
Beginning on Monday, October 31, Web CRD will be updated to facilitate the filing of advisor firm branch office filings. In addition, some states will also require branch office renewal fees to be paid through Web CRD. To read the NASAA press release concerning this new Web CRD functionality and view a table of states that will require branch office filings through Web CRD, click here.
Regardless of whether your firm is SEC or state registered, if the firm has a physical office location in a state, the firm will need to be notice filed (if SEC registered) or registered (if at the state level) in that state. A notice filing or registration is also needed for firms that advertise in a state. For states in which an advisor firm simply has clients, the firm must be aware of the state's client de minimus exemption. Of course there are exceptions to these general guidelines and states have different requirements for the licensing of advisor representatives. If you have any questions on where your firm, representatives, or branch offices need to register, give us a call.
Labels: IARD, Registration
posted by bhill at 10:30 AM
IARD Renewals for 2006
Now is the time to start planning for the 2006 renewal season. The NASD recently released its 2006 IARD Annual Renewal Program Calendar. While the 2006 Renewal Bulletin and full instructions have not been released yet, investment advisor firms should refer to the calendar now in order to begin planning for the upcoming renewals. According to the calendar, Preliminary Renewal Statements will be available on November 21 and payment must be submitted no later than December 12. The full amount of the Preliminary Renewal Statement must be paid at that time. Firm and representative licensing changes that take place after November 21 and before the system shutdown date of December 21 will be reflected on the Final Renewal Statement.
We suggest you use the next two months to ensure your firm is properly registered or notice filed in all states. Make sure your client lists are accurate. Has a client moved to a state in which your firm needs to be registered or notice filed? Likewise, is your firm registered or notice filed in states where you no longer have clients? Don’t forget to make sure your advisor representatives are properly registered in all states that require registration. Stay tuned to RIA Compliance Consultants for more information on the 2006 renewals season as it becomes available.
We suggest you use the next two months to ensure your firm is properly registered or notice filed in all states. Make sure your client lists are accurate. Has a client moved to a state in which your firm needs to be registered or notice filed? Likewise, is your firm registered or notice filed in states where you no longer have clients? Don’t forget to make sure your advisor representatives are properly registered in all states that require registration. Stay tuned to RIA Compliance Consultants for more information on the 2006 renewals season as it becomes available.
Labels: IARD
posted by bhill at 6:58 PM
Does My Firm Need to Submit the Form ADV Part II to Regulators?
A common question asked by many advisors during the registration process is whether the firm needs to file the Form ADV Part II with the appropriate regulator.
As you know, the IARD system went live in early 2001. Initial plans were that the entire Form ADV would be filed online through the IARD system; however, to date, it is capable of only accepting the Part I. The Part II is expected to go online at some point in the future.
With this in mind, the SEC currently requires advisors under its jurisdiction to keep the ADV Part II current and have a master copy as part of its books and records. The Part II does not need to be filed with the SEC, but firms must be prepared to provide it to the SEC upon request. Most state regulators have followed the SEC's lead and do not require notice filed SEC firms to submit the Part II unless requested.
When it comes to state registered firms, the rules are different. All states require that the Part II and client agreements be filed during the registration process and any time an amendment is made. In fact, the State of California now requires an updated Part II to be accompanied with a State Registered Investment Advisor Execution Page. In addition, some states require additional documents to be filed as well. New Hampshire requires state-registered firms to submit a copy of their compliance and procedures manual during the registration process.
If your firm has a question about where to send advisory documents or exactly which documents must be filed with your state, please let us know.
As you know, the IARD system went live in early 2001. Initial plans were that the entire Form ADV would be filed online through the IARD system; however, to date, it is capable of only accepting the Part I. The Part II is expected to go online at some point in the future.
With this in mind, the SEC currently requires advisors under its jurisdiction to keep the ADV Part II current and have a master copy as part of its books and records. The Part II does not need to be filed with the SEC, but firms must be prepared to provide it to the SEC upon request. Most state regulators have followed the SEC's lead and do not require notice filed SEC firms to submit the Part II unless requested.
When it comes to state registered firms, the rules are different. All states require that the Part II and client agreements be filed during the registration process and any time an amendment is made. In fact, the State of California now requires an updated Part II to be accompanied with a State Registered Investment Advisor Execution Page. In addition, some states require additional documents to be filed as well. New Hampshire requires state-registered firms to submit a copy of their compliance and procedures manual during the registration process.
If your firm has a question about where to send advisory documents or exactly which documents must be filed with your state, please let us know.
posted by bhill at 9:31 PM
