Unit 1 Flashcards
IA under investment advisor act 1940
advice on securites
part of regular business
gets fee
investment consoul
the principal business is giving investment advice
a substantial part of the business is rendering investment supervisory services
release IA-1092
financial planners- advice on financial products, or a mixture of that and insurance for a fee
penson cunsultants also included
sports and entertainment reps(manages money)
exclusions investment advisor
bank, trust company, savings institutions.
bank owned subsidary would have to
LATE if incidental (unless they charge specific fees)
BDS if no special compensation(wrap fee loses exclusion)
publishers(regular circulation)
persons advising soley on gov securites(1940)
IAR(USA)
Federal covered IA(USA)
cheat
exempt from investment advisor
(exempt from sec) clients and office in single state(exempt from sec)(no advise on listed securites) (non of clients are private funds)
only clients are insurance companies(sec only)
( state) no place of business in state and
no more than 5 within 6 months
state(no place of business) and deals only with institutions,BDS or other IAS
no pob snowbird
cheat
IA register with state or sec
>110 sec <100 state in middle sec or state 110 in 15 or more states(sec) manage investment co(sec) expect to reach 100 mill in 120 days
buffer rule
20 million.
pension consultants
never have to be registered with sec
they can register with sec once they reach 200 mill. IT is optional. they can stay state
federal covered advisors and fees
need not register with state but may need to pay filing fees(notice filing)
adv part 1 b only for
state-registered advisors
annual updating amdenment from adv
90 days of fiscal year
prompt amendent adv if
change of location, business, management promptly
adv W
effective 30 day state
60th say with sec
successor firm
new app filed
no fee if state
might be for sec(not tested)
NW requirements state
STATE- Dis only 10k
custoday- 35k
surity bond 35k accepted in leu of Net worth
exempt from NW requirements state
direct fee deduction
advising pooled investment vehnicles subject to suprise annual audit
IA notice to admin if below net capital
notify admin by end of next business day
file financial report within one business day of notice
include statement of customer accounts
requirements of NW of state vs sec
state- requirements of where principal office is
SEC- sec requirements
disclosure of financial impairment
if advisor has cust or discre
prepay(500 state)(1200 FED) 6 months in advance
recordkeeping requirements under state/federal for IAS
5 years/ 2 principal office
can be on microfish or digital
partnership agreements,articles of incorp, charters and minute books(3 years after termination of enterprise)
supervised persons U-4
if an ia files an initial registration…when does fee need to be paid
must be paid in full immediately under the USA
ADV 2A includes
fees
policies
types of investments
deminimus
no more than 5 clients in the state in 12 month period
record keeping requires for IARs and agents
none
A consent to service of process required by an Administrator is
an agreement whereby a registrant will be bound by any legal action or subpoena served on the Administrator as if it had been served on the registrant
material/nonmaterial changes and adv under 1940 act
The SEC requires prompt amendment of any material information changes on Form ADV (e.g., names, location, control, custody, organization) and also requires nonmaterial amendments within 90 days of the end of the adviser’s fiscal year.
