In December of 2020, the New York Attorney General’s office announced that the state would begin requiring certain employees of state-registered and SEC-registered investment advisers to meet new examination and registration requirements.
Previously, employees of state-registered investment advisers and federal covered advisers who offered investment advice to the public for a fee did not need to register in New York. Under the new standard, however, these individuals will be required to follow New York state CRD/IARD filing requirements, and many will now need to take and pass a qualifying examination, such as the Series 65 Uniform Investment Adviser Law Examination.
Does this apply to me? Will you have worked as an investment adviser representative for two years by February 1, 2021, either in New York or some other state? If so, as long as your firm is either registered in New York as an investment adviser or registered with the SEC as a federal covered adviser by February 1, 2021, you will need to submit a Form U4 and pay the $200 fee to register with New York state.
Additionally, if the above conditions apply, and you have not been previously disqualified from registering in New York, you will not need to take any qualifying exam.
Individuals who serve as investment adviser representatives for registered firms can also request an exam waiver if they hold any of the following professional designations: Certified Financial Planner, Chartered Financial Consultant, Personal Financial Specialist, Certified Financial Analyst, or Chartered Investment Counselor. In order to apply for an exam waiver, an individual must submit Form NY-IASW along with your Form U4.
An investment adviser who has not been associated with a New York State Registered Investment Adviser or a federal covered adviser for at least two years before February 1st, 2021 will need to submit Form U4 and pass the NASAA Series 65 Uniform Investment Adviser Law Exam. In other words, IARs who have not been in the industry for at least 24 months are subject to these rules.
Individuals who must meet the exam requirements detailed above have until December 2, 2021 to do so and must submit their Form U4 by August 31, 2021. Even if the individual has not passed his exam, they still must submit Form U4 by August 31, 2021. The state allows for exam-related deficiencies to be in effect until December 2, 2021.
If you haven’t worked as an investment adviser for at least the two preceding years and do not qualify for an exam waiver, you will need to pass the NASAA Series 65 exam or the NASAA Series 66 Uniform Combined State Law Examination (and the SIE and the Series 7) if you work for a dually registered (BD/IA) firm.
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The full New York rule can be found here: