Category Archives: How to become an investment advisor

State Registered Investment Advisors Can Choose to Notice File or Register with the Texas State Securities Board

September 12, 2012

State registered investment advisors located outside of Texas but conducting business with at least one client residing in Texas and less than six Texas residents can choose whether they would rather notice file or register with the Texas State Securities Board, the state securities regulator in Texas. The fee to notice file or register is the same, but if the state registered investment advisor chooses to notice file, there is less paperwork and the process is completed more quickly.

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How to Register as an Investment Advisor

September 07, 2012

Pursuant to Section 202(a)(11) of the Investment Advisers Act of 1940 (“Investment Advisers Act”), an investment advisor means “any person who, for compensation, engages in the business of advising others, either directly or through publications or writings, as to the value of securities or as to the advisability of investing in, purchasing, or selling securities, or who, for compensation as a part of regular business issues or promulgates analyses or reports concerning securities . . .”  Although there are some exemptions to the requirements to register as an investment advisor, generally anyone meeting this definition must register as an investment advisor with the appropriate regulatory body. While an individual can file for investment advisor registration as a sole proprietorship, it is most common and typically recommended, that an entity (e.g., limited liability corporation [“LLC”], limited partnership [“LP’’]) is established to register as the investment advisor.

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