Regulatory Reminder for State Registered Investment Advisers – Submission of Annual Financial Statements in Certain States

March 15, 2019

As your state registered investment adviser firm completes its Form ADV Annual Amendment, it’s important not to forget that many state securities regulators also require a state registered investment adviser firm to submit annual financial statements and/or other documents directly to the state securities regulator (outside of the IARD/CRD system).

Requirements vary significantly among states – some state securities regulators require all state registered investment adviser firms filed in the state to submit an annual financial statement while other state securities regulators may only require the submission of an annual financial statement if the investment adviser firm has a principal place of business in the state, maintains investment discretion or is deemed to have custody of client assets.

These annual submissions (outside of the IARD/CRD system) of the financial statement and/or other documents to a home state securities regulator are often due within 90 days of the end of an investment adviser’s fiscal or calendar year end, however, some state securities regulators utilize a different schedule such as a December 31 deadline.

In particular, RIA Compliance Consultants is aware of the following states which require a state registered investment adviser firm to make such annual financial statement and other document submissions outside of the IARD/CRD system:  California; Florida; Hawaii; Louisiana; Minnesota; Nebraska; New York; North Carolina; Pennsylvania; Tennessee; and Utah.

If your investment adviser firm is state registered, we recommend that you immediately review any communication that you received recently from your state securities regulator on this subject or contact your home state securities regulator to confirm whether there are any annual submissions (outside of the IARD/CRD system) such as annual financial statement due for your state registered investment adviser firm.  Once your investment adviser firm has identified the applicable requirements, you should memorialize such requirement in your compliance manual and promptly submit to your state securities regulator any required documents.

If you’d like to learn more about our investment adviser compliance consulting services, please click here to set up an introductory call with RIA Compliance Consultants.

Posted by Grant Parr
Labels: Annual Amendment, Financial Statements