State Exemptions from Investment Adviser Registration

State Exemptions from Investment Adviser Registration

For an investment adviser to qualify for an exemption from state registration, they have to either meet an exemption under the Investment Act of 1940, be a federal covered adviser, or be registered with the SEC. The Dodd-Frank Act has created 3 thresholds for investment advisers based of their assets under management (“AUM”) as well as some more general exclusions, all of which provide advisers the ability to register with the SEC.

Read More…

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. So when do you have to register as an investment adviser? 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.

Read More…