SEC, NASAA Announce Continuation of IARD System Fee Waiver

WASHINGTON, D.C. (October 26, 2006) – The U.S. Securities and Exchange Commission (SEC) and the North American Securities Administrators Association (NASAA) today announced they will continue to waive for two years the annual system fees paid by investment adviser firms to maintain the Investment Adviser Registration Depository (IARD) system.  The SEC and NASAA also announced a waiver of initial set-up fees for new advisers filing on the IARD.  Separately, NASAA announced that for the next two years it is reducing by one-third the system fees paid by investment adviser representatives.

SEC Chairman Christopher Cox said, “For the second year in a row we have good news about the costs of maintaining this important on-line investor protection system.  In addition to continuing for two years the waiver of annual fees paid by advisers to support the service, we are waiving initial fees paid by new registrants also from November 1, 2006, through October 31, 2008.  This is a savings for the industry and ultimately for adviser clients and the investing public more broadly.”

“The IARD system provides important information for all investors and provides streamlined registration procedures for investment advisers and their representatives. We are pleased that the system’s success has allowed us to grant a waiver of the investment adviser firm annual and initial fees  and a reduction in the annual and initial fees investment adviser representatives pay to utilize this valuable resource,” said Joseph P. Borg, Director of the Alabama Securities Commission and President of NASAA, the membership organization of securities administrators in the 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, the provinces and territories of Canada, and Mexico.

For the next two years NASAA will waive payment of initial and renewal IARD system fees by state-regulated investment adviser firms and reduce investment adviser representatives’ initial and renewal fees by one third. The initial and renewal investment adviser representative fee will be $30, reduced from $45. Borg said NASAA’s Board of Directors approved the waiver and system fee reduction and will continue to monitor the system’s revenues to determine whether future fee adjustments are warranted.

The IARD system is an Internet-based national database sponsored by NASAA and the SEC and operated by NASD in its role as a vendor. IARD provides a single nationwide database for the collection and dissemination of information about individuals and firms in the investment advisory field; and offers investment advisers and representatives a single source for filing state and federal registration and notice filings. The system contains the employment and disciplinary histories of more than 24,000 investment adviser firms and nearly 220,000 individual investment adviser representatives. IARD system fees are used for user and system support and for enhancements to the system.

Media Contacts:

John Nester (SEC)
(202) 551-4125

Bob Webster (NASAA)
(202) 737-0900

2006 Headlines, Newsroom