Series 14: 7.2.3.2. Investment Adviser Registration

Taken from our Series 14 Online Guide

7.2.3.2. Investment Adviser Registration

Investment advisers whose assets under management exceed $110 million must register with the SEC.

In addition, the following additional advisers must also register with the SEC:

Advisers to registered investment companies

Pension consultants, if they provide investment advice with respect to $200 million or more of plan assets

Applicants for registration must file Form ADV (“ADV” = Adviser). Once registered, an adviser must update the form at least once a year. Form ADV consists of two parts. Part 1 of Form ADV contains general information about the investment adviser, such as:

Information about the ownership and nature of the practice, including the names of the principals involved

Location of the main office

Types of services offered

Whether the adviser has custody of customer assets

Location of books and records

Any relevant regulatory/disciplinary history

Form ADV Part 2 requires an adviser to prepare a narrative “brochure” that includes information relevant to the customer, such as:

Fees or fee structure for the services provided

Types of advisory services offered

Methods of analyzing investments (e.g., technical versus fundamental)

Any disciplinary actions taken

Any conflicts of interest

Educational and business background of management and key advisory personnel

It also requires an adviser to prepare a “brochure supplement” containing information about each advisory employee who provides investment advice to its clients, including educational background, business experience, other business activities, and discip

Since you're reading about Series 14: 7.2.3.2. Investment Adviser Registration, you might also be interested in:

Solomon Exam Prep Study Materials for the Series 14
Please Enable Javascript
to view this content!