Federal Exemptions from Investment Advisor Registration
Exclusions from the Definition Investment Advisor
When Do You Have to Register as an Investment Adviser?

When Do You Have to Register as an Investment Adviser?

The Investment Advisers Act of 1940 defines an investment adviser as any person who, for compensation, engages in the business of advising others as too the value of securities or the advisability of investing in securities or, as part of regular business, issues analyses or reports concerning securities.

Any person who is considered an investment adviser will be subject to the Investment Adviser Act of 1940 and be required to register with either the SEC or the States. A person would be considered an investment adviser if they engaged in these three activities:

  • Provides investment advice, reports, or analysis with respect to securities;
  • Is in the business of providing advice or analysis; and
  • Receives compensation, directly or indirectly, for these services.

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Registered Investment Adviser Succession

Registered Investment Adviser Succession

The Successor Rules in the Securities Exchange Act of 1934 allows for the legitimate transfer business between two or more entities. Succession can occur when one entity acquires substantially all of the assets and liabilities of an existing RIA, and is able to rely on a predecessor’s registration as an investment adviser with the SEC. In a guidance update, the SEC defines the instances where succession is applicable: A change of the state or territory in which a business is organized and/or a change in its form of organization; A change in control or a change in leadership at an Read more about Registered Investment Adviser Succession[…]

Investment Advisor Representative Registration

Investment Advisor Representative Registration

Individuals looking to be in the business of giving investment advice for compensation will most likely need to register as an investment advisor representative (“IAR”). There are a couple of differences between becoming an IAR and a registered investment advisor(“RIA”). Most notably, only a natural person (a human being and not an entity) can be considered and IAR, and IARs never register with the SEC, only with the individual states. For an example of how to register with a state, check out the process for registering as an IAR with the state of Georgia on the Georgia Secretary of State’s website.

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Form CRS Updates in 2020 (Part 1)

Form CRS Updates in 2020 (Part 1)

On October 8th, the SEC release another update to the FAQ for Form CRS, this time focusing on the Disciplinary History section. After so many updates, it is a good idea to go back through to refresh your memory.

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