Explain the investment advisor registration process?
Currently there is a significant difference between registering with the SEC and individual state securities regulators. Firms registering with the SEC must prepare and file the Form ADV Part 1A and its applicable schedules through the IARD system. The SEC will then review the Part 1A and approve/deny the registration of the firm. While the SEC generally reviews only the Part 1A as part of the initial application process, a firm must have a Form ADV Part II, client agreements, written supervisory programs/code of ethics, and other regulatory documents up and running upon its approval with the SEC. The SEC will review such documents during a regulatory examination. In addition to filing the Form ADV Part 1A, 1B and applicable schedules through the IARD system, state registered firms must also submit several documents directly to state securities regulators. These documents include the firm’s Form ADV Part II and applicable schedules; required financial statements; client agreements; and
