Minnesota Investment Adviser Representatives Required to Register

November 20, 2013

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As we have discussed in previous articles, effective August 31, 2013, Minnesota law requires registration for investment adviser representatives.  An Order dated October 31, 2013, has been issued by the Minnesota Department of Commerce regarding the “Implementation of Registration Process for Investment Adviser Representatives.”  According to this Order, the initial registration period in Minnesota for investment adviser representatives is November 1, 2013 through January 31, 2014.  Under Minnesota law, the application for initial registration as an investment adviser representative is made by completing Form U4 and filing the Form U4 with the IARD.  The application for initial registration must also include proof of compliance by the investment adviser representative with the following examination requirements:

(A)   The Uniform Investment Adviser Law Examination (Series 65); or

(B)   The General Securities Representative Examination (Series 7) and the Uniform Combined State Law Examination (Series 66)

However, the Order issued by the Minnesota Department of Commerce indicates that the CFP®, ChFC®, CFA®, PFS, or CIC designations shall be accepted in lieu of the examination requirements so long as the designations are current and in good standing.

The order indicates that as of November 1, 2013, the IARD system is able to accept registrations for Minnesota investment adviser representatives.  It also states that proof of registration in another state shall be accepted in lieu of the examination requirements for all investment advisers representatives registered in Minnesota on or before January 31, 2014, as long as the other state required the applicant to past the Series 65 exam or the Series 66 and Series 7 examinations or specifically waived this requirement for the investment adviser representative when the investment adviser was registered by that state.  Any investment adviser representative required to meet the Minnesota registration requirements that was initially employed after August 1, 2013, as an investment adviser representative must pass the Series 65 examination or the Series 66 and Series 7 examinations in order register as an investment adviser representative in Minnesota unless the representative has one of the previously referenced designations that is current and in good standing.  Investment adviser representatives requesting registration in Minnesota after January 31, 2014, will be required to meet the previously referenced examination requirements or demonstrate that they have one of the professional designations previously referenced that is current and in good standing.

Individuals meeting the definition of investment adviser representative under Minnesota Statutes §80A.41(17) should review these new requirements closely to determine the steps that will need to be taken in order to ensure that you are properly registered by the January 31, 2014 deadline.  If you have questions regarding these new registration requirements, you should contact the Minnesota Department of Commerce, Securities Unit.

If you need assistance registering as an investment adviser representative, RIA Compliance Consultants can assist you.  For more information, contact your consultant if you are an existing client or click here to schedule a time to speak with one of our Senior Compliance Consultants.

Posted by Bryan Hill
Labels: Investment Adviser Representative, Minnesota Investment Advisor