1.1.2.1. 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
Investment advisers whose assets are less than $100 million, and who don’t fall into one of these categories, instead register with the states in which they operate. Applicants whose assets are between $100 million and $110 million can choose to register with either the SEC or the states in which they operate.
Applicants for registration file the same form regardless of whether they are registering at the state or federal level. This form is called Form ADV (“ADV” = adviser) and it 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., tech