Investment Advisers & Investment Adviser Representatives
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Investment Adviser Registration Fees Under the Massachusetts Uniform Securities Act
Initial Fees |
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---|---|
Initial registration fee for investment advisers |
$300 |
Exempt Reporting Adviser |
$300 |
Renewal fees |
Renewal registration fee for investment advisers |
$300 |
Massachusetts Notice Filing (SEC Registered IA) |
$300 |
Exempt Reporting Adviser |
$300 |
Note: All fees are nonrefundable. Under one limited exception, renewal fees will be refunded for agents and investment adviser representatives identified on the CRD as active military as of the last day of the year.
Investment Adviser Registration Requirements
950 Mass. Code Regs. 12.205(5)(2)(a) |
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Forms on CRD/IARD |
Form ADV Parts 1 and 2A (2B if necessary) (950 Mass. Code Regs. 12.205(2)(a)1.a) |
Form U4 (PDF) for at least one investment adviser representative (950 Mass. Code Regs. 12.205(2)(d)1.a) |
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Fee to be submitted on CRD/IARD |
$300 (950 Mass. Code Regs. 12.205(2)(a)1.d) |
Documents to be submitted Directly to MSD |
Surety Bond if adviser is based in MA and has discretion (950 Mass. Code Regs. 12.205(a)1.b); |
Allowed in “home” state if “home” is not MA |
Investment Adviser Registration
Who Must Register?
The definition of Investment Adviser includes any person who, for compensation, engages in the business of advising others, either directly or through publications or writings, as to the value of securities or as to the advisability of investing in, purchasing, or selling securities, or who, for compensation and as a part of a regular business, issues or promulgates analyses or reports concerning securities. Every person who, for compensation, renders investment advice or provides financial planning services that includes investment advice in Massachusetts must register with the Securities Division as an investment adviser unless that person is specifically excluded from the definition. The Massachusetts Uniform Securities Act Mass. Gen Laws. 110A (the “Act”) and the definition and exclusions are found in Section 401(m) of the Act.
How to Register
Applications and fees for registration with the Securities Division as an investment adviser are made electronically via IARD. IARD is operated and maintained by FINRA, which assesses a charge for this service.
Registration Requirements
Registration Fee and Form ADV
A completed Form ADV, which consists of Parts 1A, 1B, 2A, and possibly 2B with their appropriate schedules, must be filed electronically. The registration fee of $300 must be paid electronically by one of the methods provided by the CRD.
Investment Adviser Representatives
Every registered investment adviser must have at least one registered investment adviser representative.
Please see 950 Mass. Code Regs. 12.205(5) for minimum financial requirements for investment advisers with discretionary authority.
Affidavit for Certain Partners, Officers and Directors
Pursuant to Section 202(a) of the Act, registration of an investment adviser automatically constitutes registration as an investment adviser representative of any partner, officer, or director, and any person occupying a similar status or performing similar functions. If any such person will not be performing any functions of an “investment adviser representative” under Section 401(n) of the Act, he or she may complete and submit an affidavit (PDF) and a completed Form U4 directly with the Securities Division at the address listed below. A copy of the affidavit can also be found in the Forms section at the end of this material and a copy of the Form U4 can be found via a link to the FINRA website in the “All Other Uniform Forms” sub-section at the end of this material. Otherwise, the firm must file the following electronically with the Securities Division via the CRD for each such person: (i) a $50 non-refundable registration fee, (ii) a completed Form U4 indicating Massachusetts as a jurisdiction for registration, and (iii) proof of satisfaction of applicable examination or certification requirements.
Office of the Secretary of the Commonwealth
Securities Division
One Ashburton Place, Room 1701
Boston, Massachusetts 02108
Tel: 617-727-3548
Fax: 617-248-0177
Email: msd@sec.state.ma.us
Effective Date
Registration as an investment adviser becomes effective on the earliest of the following:
- The day the Securities Division notifies IARD that the registration is effective.
- If no deferral or denial order is in effect, and no proceeding is pending under Section 204 of the Act, at noon of the 30th day after an application has been filed.
- If a deferral or acceleration order is in effect, on the date specified in the order.
Investment Adviser Registration Renewals
Investment adviser registrations expire on the last day of the calendar year. An investment adviser shall renew its registration in Massachusetts annually via IARD. Notice will be provided by IARD in the fall of each year as to the appropriate renewal procedures, deadline dates, and fees.
[Massachusetts’ investment adviser registration renewal fee: $300; Massachusetts’ investment adviser representative registration renewal fee: $50]
Record Keeping Requirements
the Securities Division’s record-keeping regulations can be found at 950 Mass. Code Regs. 12.205(7). Please note that the Regulations also incorporate the record-keeping rules for investment advisers promulgated by the U.S. Securities and Exchange Commission under the Investment Advisers Act of 1940. These record-keeping requirements will not apply if the investment adviser’s principal place of business is in a state other than Massachusetts and the investment adviser is registered in the state of its principal place of business and is in compliance with that state’s record-keeping requirements.
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Investment Adviser Representative Registration Fees Under the Massachusetts Uniform Securities Act
Initial Fees |
|
---|---|
Initial registration fee for investment adviser representatives |
$50 |
Renewal fees |
Massachusetts Notice Filing (SEC Registered IA) |
$300 |
Renewal registration fee for investment adviser representatives |
$50 |
Transfer Fees |
Investment Adviser Representatives transfer fee |
$50 |
Note: All fees are nonrefundable. Under one limited exception, renewal fees will be refunded for agents and investment adviser representatives identified on the CRD as active military as of the last day of the year.
Investment Adviser Representative Registration Requirements
950 Mass. Code Regs. 12.205(5)(2)(d) |
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Forms on CRD/IARD |
Form U4 (PDF) (950 Mass. Code Regs. 12.205(2)(d)1.a) |
Fee to be submitted on CRD/IARD |
$50 (950 Mass. Code Regs. 12.205(2)(d)1.b) |
Examination Requirements/Qualifications |
Either 7 & 66; 65; or CFA/CFP/CHFC/CIC/PFS (950 Mass. Code Regs. 12.205(2)(d)1.c and 12.205(4)) |
Documents to be submitted Directly to MSD |
CORI Form (PDF) (950 Mass. Code Regs. 12.205(2)(d)1.d) |
Adviser Firm registered or noticed-filed in MA |
Investment Adviser Registration
Who Must Register?
Under Section 401(n) the Act, an investment adviser representative includes any person who, on behalf of the investment adviser, recommends or renders advice regarding securities, manages accounts or portfolios of clients, determines which recommendation or advice regarding securities should be given, solicits, offers or negotiates for the sale or sells advisory services, or supervises employees who perform these services. Every person, regardless of where he or she is located, who performs any of the above activities with Massachusetts clients for an investment adviser registered with the Securities Division, must register as an investment adviser representative of that investment adviser.
Every investment adviser applying for registration in Massachusetts must register at least one investment adviser representative.
How to Register
Applications for registration with the Securities Division as an investment adviser representative are made electronically via CRD, which is linked to IARD. CRD and IARD are operated and maintained by FINRA, which assesses a charge for this service.
Registration Requirements
Registration Fee and Form U4
A completed Form U4 must be filed electronically on the CRD. The registration fee of $50 for each representative must be paid electronically by one of the methods provided by the CRD.
Criminal Offender Record Information (CORI) Acknowledgement Form filed electronically with the Securities Division
The CORI Acknowledgement Form (PDF) is a required component of a complete application pursuant to 950 Mass. Code Regs. 12.205(2)(d)(1). The completed and executed CORI Acknowledgement Form shall be filed electronically with the Securities Division via e-mail to CORI@sec.state.ma.us.
Examination or Certification Requirements
Each investment adviser representative submitting an application for registration must have met the requirements of either (a) or (b) below:
- Currently hold the professional designation of
- Certified Financial Planner (CFP);
- Chartered Financial Analyst (CFA);
- Chartered Financial Consultant (ChFC);
- Chartered Investment Counselor (CIC); or
- Personal Financial Specialist (PFS).
- Have obtained a passing score on (i) the Uniform Investment Adviser Law Examination (“Series 65”), or (ii) on both the Uniform Combined State Law Examination (“Series 66”) and the General Securities Representative Examination (“Series 7”). Note: The Series 65 and the Series 66 must be those examinations available since January 1, 2000. A passing score on either examination prior to January 1, 2000 does not qualify as meeting the above requirements.
See 950 Mass. Code Regs. 12.205(4) for additional information about meeting the certification or examination requirements before applying for investment adviser registration on CRD.
Effective Date
Registration as an investment adviser representative becomes effective on the earliest of the following:
- The day the Securities Division notifies the CRD that the registration is effective.
- If no deferral or denial order is in effect, and no proceeding is pending under Section 204 of the Act, at noon of the 30th day after an application has been filed, assuming the investment adviser firm's registration is also effective.
- If a deferral or acceleration order is in effect, on the date specified in the order.
Investment Adviser Representative Registration Renewals
Investment adviser representative registrations expire on the last day of the calendar year. An investment adviser representative shall renew his or her registration in Massachusetts annually via the CRD. Notice will be provided by the IARD/CRD in the fall of each year as to the appropriate renewal procedures, deadline dates, and fees.
[Massachusetts' investment adviser representative registration renewal fee: $50]
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Notice Filing for Federal Covered Advisers
Who Must Notice File With the Securities Division?
A Federal Covered Adviser who transacts investment advisory business in Massachusetts must notice-file with the Securities Division unless specifically excluded from the definition. The definition of a Federal Covered Adviser and related exclusions are found in Section 401(o) of the Act.
How To Notice File
Federal Covered Advisers should notice-file with the Securities Division electronically via IARD. IARD is operated and maintained by FINRA.
Notice Filing Requirements
Please file the Federal Covered Adviser's most recent, completed Form ADV electronically by indicating Massachusetts as a notice-filing jurisdiction on IARD and a $300 notice filing fee via IARD.
Notice Filing Renewal Requirements
A Federal Covered Adviser's status as a notice-filer expires on the last day of the calendar year and shall be renewed annually through IARD. Notice will be provided by IARD in the fall of each year as to the appropriate renewal procedures and fees.
[Massachusetts’ Federal Covered Adviser notice filing renewal fee: $300]
Registration of Investment Adviser Representatives of Federal Covered Advisers
Who Must Register?
Any person who meets the federal definition of “investment adviser representative” as found in Rule 203A-3(a) under the Investment Advisers Act of 1940 and who has a “place of business” in Massachusetts as found in Rule 203A-3(b) under the Investment Advisers Act of 1940, must register with the Securities Division as an investment adviser representative of the Federal Covered Adviser.
Forms
Affidavit for an Individual Waiving Automatic Investment Adviser Representative Registration (PDF)