NASAA Reminds Mid-Sized Investment Advisers to Take Steps to Ensure Registrations are Active

WASHINGTON (June 28, 2012) – The North American Securities Administrators Association today reminded investment advisers eligible to switch from federal to state registration that have yet to switch to contact their state securities regulator to begin the process.

Under the Dodd-Frank Wall Street Reform and Consumer Protection Act, investment advisers with assets under management of between $25 million and $100 million are required to switch from federal to state registration by today.

“The vast majority of switching advisers have already made the switch or are in the process. There are some stragglers who have waited until the last minute and we encourage them to take immediate steps to begin the state registration process,” said Jack E. Herstein, NASAA President and Assistant Director of the Nebraska Department of Banking and Finance Bureau of Securities.

Under the law, approximately 2,500 mid-sized investment advisers will switch from federal to state regulation. When the switch is completed, states will have regulatory responsibility for approximately 17,000 investment advisers while about 10,500 investment advisers will be under federal oversight.

“This switch is currently the largest single regulatory event involving a coordinated effort by the states and the SEC,” Herstein said.

Herstein noted that states are working aggressively to thoroughly review registrations for any deficiencies. “Advisers need to be prompt when responding to deficiency notices from the states. That will help speed up the registration process,” he said.

Herstein noted that the SEC has a deregistration process for firms that are no longer eligible to remain registered at the federal level.

“State securities regulators have been preparing for the switch for more than two years. These preparations will enable state regulators to implement intelligent, efficient and responsive regulation,” Herstein said. “We are ready and looking forward to accepting our increased regulatory oversight of mid-sized investment advisers.”


For More Information:

Bob Webster, Director of Communications
202-737-0900 |

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