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How does an investment advisor firm obtain a surety bond to meet the state’s net worth requirement?

November 02, 2018

It’s recommended that you contact your local commercial insurance agent as soon as possible since this can be a relatively slow process. Please refer to the particular requirements published by your firm’s home state securities regulator. Your state securities regulator will likely have a surety bond form or affidavit that will need to be executed […]

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Are investment advisors subject to any net worth/net capital or bonding requirements?

November 02, 2018

The SEC does not currently have a specific net worth/net capital or bonding requirement for an investment advisor. However, the SEC will heavily focus on the financial condition of an investment advisor during a regulatory examination. The following are the specific financial records that must be kept as part of an investment advisor’s books and […]

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How often are investment advisor registrations renewed?

November 02, 2018

State investment advisor registrations and notice filings expire every year on a calendar basis. All renewal fees are paid during the IARD renewal season which takes place during November and early December each year. The SEC does not charge an initial or annual investment advisor registration renewal fee; however, SEC firms failing to file their […]

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How much are the registration fees to become registered as an investment advisor?

November 02, 2018

SEC and state registered advisor firms and their investment advisor representatives are subject to initial and annual state licensing fees. A listing of such investment advisor fees can be found on the IARD’s public website at http://www.iard.com/fees.asp. In addition, the IARD system charges an initial and annual $30 fee for each investment advisor representative licensed through […]

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Will my investment advisor firm need to implement written compliance programs?

November 02, 2018

For SEC registered investment advisor firms, the answer is “yes”. The SEC, under Rule 206(4)-7, requires all federally registered investment advisor firms to develop and maintain written compliance programs. The policies and procedures should be designed to prevent violations from occurring, detect violations that have occurred, and promptly correct any violations that have occurred. While […]

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When does the Form ADV have to be amended?

November 02, 2018

State and SEC registered investment advisory firms are required to file an annual amendment to the Form ADV via the IARD system within 90 days of the close of the investment advisor’s fiscal year. Additionally, an investment advisor should promptly update its Form ADV within 30 days of any material changes.

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How long does the registration process take?

November 02, 2018

It usually takes three to four weeks to prepare the investment advisor application and the associated documents. Once you submit the investment advisor application, it will take approximately three to four weeks for the SEC or state to review your application. However, this can vary significantly due to the particular volume and staffing associated with […]

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Is an individual serving as the chief compliance officer (“CCO”) of an investment advisor firm registered with the U.S. Securities and Exchange Commission (“SEC”) required to be registered with a state securities regulator as an investment adviser representative?

November 02, 2018

Assuming an individual serving as the chief compliance officer of an SEC registered investment advisor firm does not regularly solicit, meet or otherwise communicate with investment advisory clients, the Investment Advisers Act of 1940 (“Investment Advisers Act”) and SEC do not specifically require such individual to be registered as an investment adviser representative. (Please see […]

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What topics are tested on the Series 65 examination?

November 02, 2018

For information about the most current topics covered in the Series 65 examination, the North American Securities Administrators Association (NASAA) website is an excellent resource. The website contains an outline of the topics covered in the exam. Click the following link to be directed to the NASAA website – http://www.nasaa.org/content/Files/Series65ExamSpecs.pdf

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