Registered Investment Adviser Registration
There is more to registration than
completing the ADV form!
Series 65 study program - click
here
Investment Adviser Registration Services – from Start-up to On-Going
Administration -- include:
- Registering investment advisers with state or federal regulatory
agencies, as appropriate.
- Developing standard forms of Investment Advisory Agreements to meet
requirements and provide maximum protection to the adviser.
- Identifying cost-effective sources to perform specialized services;
especially legal and accounting.
- Developing procedures to ensure timely and accurate completion of
required compliance and accounting functions.
- Training administrative personnel in compliance and record-keeping
requirements.
- Performing Blue Sky filings for investment advisors and limited
partnerships.
- Establishing relationships with brokers, including Prime Brokers.
- Facilitate opening accounts.
- Reviewing practices for compliance with regulations.
Fees:
Although each application is unique, Investment Adviser registrations are
approximately $2,500 (depending upon complexity). Multiple state registration is
additional. Other costs are filing fees, FINRA exam study materials, and exam
testing fees.
The complete registration process is handled -- from completion of Form ADV
to responding to regulator comments, and forwarding complete files to the client
once the certificate is received.
The startup cost also includes a filing to the Department of Labor in order
to allow the RIA to take ERISA clients. There is no filing fee associated with
this filing.
After the client is registered, services can be provided for ongoing
compliance services, which are billed on an hourly basis. These services range
from answering questions regarding record keeping requirements to informing
clients of upcoming regulatory deadlines, and submitting the necessary documents
if requested. The hourly fees for clerical services range from $25 - $75 per
hour, principal services are higher.
Here is the general process used to file an initial investment adviser
registration:
- Phone interview with client to discuss the kind of business to be
done;
- Draft of Form ADV is created, then forwarded to client for review;
- Comments regarding Form ADV are received and revisions are made to
the draft;
- Final draft of Form ADV is sent, along with documents for execution;
- Execution documents are received and registration package is submitted
to regulatory agency
- If comments are received from the regulatory agency, a response is
prepared and submitted:
- Original certificate of registration is received, and complete files
are sent to the client.
- The registration package to the regulatory agency will include any
associated documents required for registration.
Exams:
Generally the state securities administrators require the
Series 65 Uniform
Registered Investment Adviser exam. They will accept, however, the
Series 7 in
combination with the Series 66.
Some professional designations, such as the CFA,
CFP, CIC, APFS, or ChFC, will waive the exam requirement.
If the Investment Adviser is going to run a "Hedge Fund" and trade commodity
futures, a Series 3 National Commodity Futures Exam is often required.
Click
here to order Series 3 self study materials.
Need a test application form U-10?
Click here
To order Series 65 Uniform Investment Adviser study
materials or to see
course descriptions
click here.
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