Previously on the MasterCompliance blog, we covered When Do You Have to Register as an Investment Advisor and Exclusions from the Definition Investment Advisor. This Blog will discuss when a person does meet the definition of an investment advisor under the Investment Act of 1940, but is exempt from registration.
On December 1, 2020, the state of New York adopted new regulations that amended its Investment Advisory Act to require the registration of investment adviser representatives (“IAR”) including principals, supervisors, and solicitors through the WebCRD/IARD system. Prior to the rule change, New York was the only state that did not license IAR via the WebCRD/IARD system. The change to to New York IAR registration will go into effect on February 1, 2021 for all new registrants, and December 2, 2021 for any New York IARs already providing services, provided they apply for registration by August 31, 2021. The Amendments The Read more about Change to New York IAR Registration[…]
In mid-December, the CFP Board redesigned their consumer facing website, LetsMakeAPlan.org, to include updated content and a modernized interface with a mobile friendly design to improve user experience, educate consumers on financial planning concepts, and provide resources to find and evaluate CFP professionals. The CFP Board partnered with Heart + Mind Strategies LLC to conduct an intensive consumer research study from June-September 2020 to inform the redesign of the website. From their findings, the Board concluded that “consumers preferred that LMAP provide content that enables them to gain a better understanding about financial planning, information on how to evaluate the best way forward with a financial professional, and guidance in searching for a CFP professional that fits their circumstances. From this research, the Board”.
Failure to timely update information on an individual form U4 may lead to potential fines and suspensions for a registered person, especially if the act is willful. Examinations and sweeps performed by FINRA generally reveal exceptions.
The 2019 FINRA Renewal Program for Broker-Dealers, Investment Adviser Firms, Investment Adviser Agents, Investment Adviser Representatives, and Branches is scheduled to begin on November 12, 2018.
Firms should note the following key dates in the renewal process:
- November 12, 2018 – Preliminary statements are available via the E-Bill section of WebCRD. Preliminary statements are not mailed to firms.
- December 17, 2018 – Full payment of Preliminary Statements is due.
- January 2, 2019 – Final Statements are available via the E-Bill section of WebCRD.
- January 21, 2019 – Full Payment of Final Statements is due.
Broker-dealers that are active in the sale or solicitation of private placement offerings have additional requirements under FINRA and SEC rules. These requirements include filing certain offering documents with reference to any investments solicited and/or sold to clients of the firm. Read More…