While the Investment Advisers Act of 1940 governs federal registration of IAs, state registration of IAs is regulated under the Uniform Securities Act (Weblink 1.3).
Registration of investment advisers and investment adviser representatives is now available using the Investment Adviser Registration Depository (IARD) system referenced below. Under the Uniform Securities Act, state-registered IAs must also file what's known as a "consent to service of process," which appoints the state administrator as your agent to receive and process any legal complaints.

Finally, while a state may not require IAs to file if they are registered with the SEC, they may require IAs to file with the state any documents filed with the SEC, to file a consent to service of process, and/or to pay state fees.

States may also require any or all of the following:

  • A passing score on a competency exam for each person acting as an investment adviser or investment adviser representative
  • Payment of a fee for processing investment adviser application
  • Certain disclosures to the securities agency and/or the public
  • Registration of branch offices of the adviser
  • A bond or minimum net capital


Exam Tips and Tricks
The Series 65 exam is likely to have a number of questions on the state registration process, but most are pretty straightforward. Here is a typical example:

A state administrator can require all of the following of an investment adviser applicant EXCEPT:

  1. Minimum surety bond coverage
  2. Minimum competency evidenced by passing an examination
  3. Minimum net capital
  4. Minimum number of years of investment advisory experience


Answer
In this question the correct answer is "d", since the Uniform Securities Act does not require a specific number of years of experience.




Federally Registered Investment Advisers

Related Articles
  1. Financial Advisor

    Series 63, Series 65 Or Series 66?

    When joining the world of investment professionals, you must take the right exams.
  2. Personal Finance

    Career Advice: Financial Analyst Vs. Financial Adviser

    Read an in-depth review of the differences between a career as a financial Adviser versus a career as a Financial Analyst, including how to decide which is best.
  3. Financial Advisor

    Who Needs to Take the Series 65?

    Most states require individuals to pass the Series 65 exam in order to act as investment advisors.
  4. Financial Advisor

    How Advisors Can Create Compliance Programs

    Here's how investment advisers can set up a compliance program that adheres to SEC requirements.
  5. Financial Advisor

    Introduction To The Series 65 Exam

    The Series 65 is required in many states in order to be a fee-based advisor. Find out what it is and whether you need it.
  6. Financial Advisor

    Top SEC Exam Hacks for Financial Advisors

    These five tips will help financial advisors pass muster when the SEC comes knocking.
  7. Personal Finance

    The Series 79 Exam: What It Is And When You Need It

    If you're getting into the field of investment banking, you'll need to know all about the Series 79.
  8. Financial Advisor

    Understanding Series 63

    Series 63 is a securities license that entitles the holder to sell securities in a particular state.
  9. Financial Advisor

    SEC on Advisor Performance Claims: 'Show Your Work'

    The SEC will now require advisors to keep records of any documentation that is distributed to clients that contains performance numbers of any kind.
  10. Financial Advisor

    3 Digital Platforms FAs Should Keep on Their Radar

    Find out which digital platforms financial advisers should look to as the trend toward adviser-based digital advice continues into 2016.
Frequently Asked Questions
  1. What is the difference between yield and return?

    While both terms are often used to describe the performance of an investment, yield and return are not one and the same ...
  2. What are the Differences Among a Real Estate Agent, a broker and a Realtor?

    Learn how agents, realtors, and brokers are often considered the same, but in reality, these real estate positions have different ...
  3. What is the difference between amortization and depreciation?

    Because very few assets last forever, one of the main principles of accrual accounting requires that an asset's cost be proportionally ...
  4. Which is better, a fixed or variable rate loan?

    A variable interest rate loan is a loan in which the interest rate charged on the outstanding balance varies as market interest ...
Trading Center