Investment advisers in New York need to register with regulatory authorities to legally conduct business. The main regulatory body is the New York State Office of the Attorney General’s Investment Protection Bureau. Key requirements include passing qualification exams, submitting registration forms, paying fees, meeting net capital and bonding requirements. The registration process can take 2-3 months and needs to be renewed annually.
Taking qualification exams is the first step for investment adviser registration
Investment adviser representatives in New York must pass the Uniform Investment Adviser Law Examination, also known as the Series 65 exam, prior to submitting registration paperwork. Some individuals may qualify to register by passing the Series 7 and Series 66 exams instead. These exams test applicants’ knowledge of applicable state and federal securities laws.
Submission of Form ADV is required for investment advisers in New York
Form ADV has two parts. Part 1 requires disclosure of the adviser’s education, disciplinary history and business practices. Part 2 serves as the main disclosure and compliance document given to clients. Investment advisers need to file both parts electronically on the Investment Adviser Registration Depository system.
Paying registration fees on time helps avoid delays
In addition to exam and form requirements, investment advisers in New York must pay certain fees to register. The initial registration fee is $400, with an annual renewal fee of $100. Advisers that register late may incur extra charges of $25 per month up to $300 per year.
Meeting capital and surety bond rules ensures regulatory compliance
Registered investment advisers in New York must maintain a minimum net capital, typically $35,000. This ensures advisers have adequate financial resources. Advisers holding client assets may also need a surety bond of $20,000 – $100,000 for further client protection.
Registering as an investment adviser in New York involves meeting qualification, form submission, fee payment and net capital requirements. While the process can take 2-3 months for approval, registration allows advisers to legally and compliantly service clients in the state.