The North American Securities Administrators Association has unveiled an Investment Advisor Coordinated Review Program for investment advisors switching from federal to state securities regulatory oversight as mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act.
The Dodd-Frank Act requires investment advisors with assets under management of between $25 million and $100 million to switch from federal to state registration by mid-2012.
Jack E. Herstein, Nasaa president and assistant director of the Nebraska Department of Banking and Finance Bureau of Securities, said the program provides investment advisors registering in multiple states an easier way to navigate the switch to state registration and gives states an opportunity to coordinate and resolve potential applicant problems.
Nasaa is the trade group for state securities administrators
The program is open to SEC-registered investment advisors switching their registration in anywhere from four and 14 states. Advisors switching registration in fewer than four states must register with each individual state. Advisors registered in 15 or more states can remain with the SEC. The program will conclude on March 30, 2012, Herstein said.
Eligible investment advisors must complete and submit the Coordinated Review Form found in the IA Switch Resource Center on the Nasaa website (www.nasaa.org), in addition to filing all materials required by the states in which the advisor is applying for registration.
After an advisor has filled out his state investment advisor registration depository for each state, the next step is to go to the Nasaa website to fill out the "I want to participate in coordinated review'' form. Melanie Lubin, Maryland Securities Commissioner, says Nasaa has hired a facilitator to bring together all of the states over the phone to go over any deficiency comments in an advisor's state filings.
After completion of the review, the advisor will be informed of the deficiencies, if any, that must be resolved before the registration will be approved.