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
• advisers whose principal office and place of business is in a state that has not enacted an investment adviser statute
• 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 information
• 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 informa