Here is a summary of the updated SEC ADV registration requirements with respect to
adviser assets under management (AUM):
Under $25 MM
States remain responsible for registration requirements at this AUM level. An adviser at this AUM level will not be permitted to register with the SEC unless its state does not regulate investment advisers.
$25 to $100 MM
The Dodd-Frank Bill establishes a new category for advisers at this AUM level. If an adviser has its principal place of business and is subject to being inspected or reviewed by the state's securities authorities, it will be subject to registration in such state. If the adviser’s state does not promulgate such requirements, it will be required to register with the SEC.
However, an adviser that would otherwise fit this newly created category will be given the option of SEC registration if it would otherwise be required to register with 15 or more states.
$100 MM
Under $25 MM
States remain responsible for registration requirements at this AUM level. An adviser at this AUM level will not be permitted to register with the SEC unless its state does not regulate investment advisers.
$25 to $100 MM
The Dodd-Frank Bill establishes a new category for advisers at this AUM level. If an adviser has its principal place of business and is subject to being inspected or reviewed by the state's securities authorities, it will be subject to registration in such state. If the adviser’s state does not promulgate such requirements, it will be required to register with the SEC.
However, an adviser that would otherwise fit this newly created category will be given the option of SEC registration if it would otherwise be required to register with 15 or more states.
$100 MM
Advisers with $100 MM or greater AUM will be required to register with the SEC, unless otherwise exempt under the Advisers Act.
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Robert Kiggins, Esq. of McCarthy Fingar LLP, is author of the blog, and may be reached at (914) 385-1024 or rkiggins@mccarthyfingar.com.
