State Securities Regulators Launch Coordinated Review Program for Investment Advisers

WASHINGTON (November 29, 2011) – The North American Securities Administrators Association (NASAA) today announced that it has developed a coordinated review program for investment advisers 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 advisers with assets under management of between $25 million and $100 million to switch from federal to state registration by mid-2012.

“This initiative provides investment advisers registering in multiple states with an easier way to navigate the switch to state registration and gives states an opportunity to coordinate and resolve issues about potential problems with applicants,” said Jack E. Herstein, NASAA President and Assistant Director of the Nebraska Department of Banking and Finance Bureau of Securities.

The Investment Adviser Coordinated Review Program is open to SEC-registered investment advisers switching their registration to between four and 14 states. Under Dodd-Frank, investment advisers registered in 15 or more states can remain with the SEC. The program will conclude on March 30, 2012, Herstein said.

To participate in the program, eligible investment advisers 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 adviser is applying for registration.

The states where the investment adviser has filed a registration application will conduct a coordinated review of the investment adviser’s registration materials. After completion of the review, the adviser will be informed of the deficiencies, if any, that must be resolved before the registration will be approved.

Herstein said there is no additional cost to use the program. “Advisers will be subject only to the filing fees specified by the states in which the investment adviser is applying for registration,” he said, noting that NASAA has waived IARD system fees for 2011 and 2012.

NASAA is the oldest international organization devoted to investor protection. Its membership consists of the securities administrators in the 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Canada and Mexico.

For more information:
Bob Webster, Director of Communications
202-737-0900

Current Headlines, Newsroom