An Individual Serving as Both RR/IAR Should Verify Actual Registration as an IAR with State Regulators

November 26, 2006

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.

Posted by Bryan Hill
Labels: Form U4