Failure to Properly Renew Registration May Result in Adverse Consequences for Investment Advisers

October 28, 2020

Investment adviser firms and investment adviser representatives must maintain active registrations and/or notice filing statuses with applicable jurisdictions/states. Unless properly renewed, all investment adviser firm and investment adviser representative licensing approvals expire December 31 each calendar year. To ensure that investment adviser firms and their investment adviser representatives are properly licensed in all necessary jurisdictions for 2021, renewal fees must be paid through the Investment Adviser Registration Depository (“IARD”) system.

Failure to maintain active registration or failure to properly renew registration by the deadline may be detrimental to an investment adviser firm.  Investment adviser firms and investment adviser representatives that are not properly renewed may become ineligible to conduct business effective January 1, 2021. Additionally, certain regulators may assess fines against those firms or representatives that fail to properly renew.

Annual Amendment Service

Most jurisdictions participate in the IARD Automatic Failure to Renew Program. If your investment adviser firm or its representatives are registered or notice filed in a jurisdiction that participates in the IARD Automatic Failure to Renew Program, your jurisdiction has authorized FINRA to automatically terminate your investment adviser firm and investment adviser representative registrations on December 31, 2020, if your investment adviser firm’s IARD Renewal Account is not funded by the renewal deadline.

Beginning November 16, 2020, your investment adviser may retrieve its Preliminary Renewal Statement using the IARD/Web CRD system. Your investment adviser’s Preliminary Renewal Statement will reflect the full payment due in your investment adviser firm’s FINRA IARD Renewal Account by December 14, 2020.

If your investment adviser firm needs assistance with the renewal process or determining if it is properly registered, RIA Compliance Consultants can assist you. If you are an existing client of RIA Compliance Consultants, please contact your consultant to discuss how we can assist you. If you have not previously worked with RIA Compliance Consultants, please click here to learn more about our 2021 IARD Renewal and Form ADV Annual Amendment Services contact our business development team at bizdevteam@ria-compliance-consultants.com .

Don’t miss the opportunity to have RIA Compliance Consultants guide you through your renewals to make sure you remain properly registered for 2021, assist you with your Form ADV annual amendment to meet your regulatory obligation. Sign-up now and take advantage of the discount for our 2021 IARD Renewal and Form ADV Annual Amendment services

Click here to purchase IARD Renewal and ADV Annual Amendment Services.

Before you make the online purchase you will be prompted to sign an engagement letter for these services. Click here if you would like to view the engagement letter for the IARD Renewal and ADV Annual Amendment Services. Please keep in mind that we must receive the retainer payment and executed engagement letter prior to November 30, 2020 to be eligible for the discount on the IARD Renewal and ADV Annual Amendment services.

 

Posted by Grant Parr
Labels: Annual Amendment, IARD