Q. The IA firm I work for is also a Broker-Dealer and, as such, the IA Firm is exempt from paying state notice filing fees in certain states. Since the firm is exempt from paying fees, does that mean I do not need to make a transition filing for those states in which our firm is exempt?
No. Simply being exempt from fees does NOT make your firm exempt from making a transition filing. If the state in question required your firm to submit a paper notice filing then you must make a transition filing on IARD regardless of your firm’s fee exemption. The transition filing is necessary in order to reflect your firm’s status as Notice Filed in those states and will not result in additional fees if your firm is qualified as fee exempt. If you are still uncertain as to whether or not you should transition file then please contact the state securities regulator directly. The phone numbers are on the NASAA website.
Q. How do I get more information on the renewal process?
Please go to this web site for more information on the IARD renewals program, http://www.iard.com/renewals.asp
Q. When can firms expect to begin filing with IARD?
The IA Firm portion of IARD will start accepting filings from state and federal investment advisers on January 2, 2001. This does not include Pilot filers, who will already be on the system.
Q. What are the advantages of electronic filing through the IARD?
Eliminate paper filings
Single filing will satisfy State and SEC notice filing requirements
Automatic payment of State fees
Provide easy public access to information about firms
Q. What are the costs to a state adviser to file on IARD?
Initial Set-Up Fee $150
Annual Fee $100
NOTE: These fees are in addition to the state registration fees.
Q. How will the renewals process work?
Renewals will be done on December 31 of each year. Follow the current renewal procedures the state with which you are registered has in place. Beginning on f December 31, 2001 a $100 annual system fee was required in addition to state renewal fee for all filers.
Q. What is a hardship filing and how is it defined?
An adviser that files electronically can request a temporary hardship exemption if unexpected difficulties prevent it from filing, such as a computer malfunction or electrical outage. The exemption will be available upon filing and allow an adviser to delay the deadline for an electronic filing for seven business days.
A continuing hardship exemption will be available only to an adviser that can demonstrate that the electronic filing requirements would create an undue hardship (e.g., the adviser does not have a computer and is unable to afford a filing service). If a continuing hardship exemption is granted, the adviser would file on paper with NASDR, which would then convert the filing to electronic format and charge the adviser an additional fee to cover conversion costs.
Q. Where can I find information about SEC registered firms and their filing requirements?
Please check the Official SEC IARD Site for more information.
Q. What kind of hardware/software will state regulators and filers need to have in order to file using IARD?
You will need to have the same software and hardware capability currently used for running WebCRD. The Minimum Recommended Client Configuration to operate IARD include:
Hardware: Pentium Class Computer with at least 16 MB RAM
Operating System: Windows 95/98 or Windows NT 4.0
Modem: 56KB (28.8 KB minimum)
Screen Resolution: 1024×768 (800 x 600 minimum)
**ATTENTION NETSCAPE USERS: If you are an IARDSM user who uses NETSCAPE, you may experience delays in retrieving the data when conducting complex database queries with the IARD System. In some instances, the browser indicator at the condition appears, your system has not shut down and you will eventually receive your data. These problems are limitations in the current versions of Netscape. We have been advised by Netscape that version 6.0 of their Web browser will correct this problem when released; however, that release date has not yet been determined. Further information on Netscape 6.0 is available on their website (www.netscape.com).
Q. Does IARD work like CRD?
IARD incorporates the same technology used in the development of Web CRD and therefore functions very similar to Web CRD.
Q. What is the transition filing process, how does it work, when does it show up and when will the full ADV show up?
Unlike Web CRD, the IARD does not contain any information on advisory firms. It is necessary for the firm to make a “transition filing” in order to get onto the system. A transition filing contains minimal information on a firm in order to create a firm record in IARD. A transition filing is comprised of the firm’s name, IARD number (if the firm does not have an IARD number the system will assign one) and its effective date (the pre-NSMIA date the firm originally registered with the jurisdiction). Once a firm completes the transition filing it will immediately be posted to the Transition Queue for the state to review. The firm may file a full ADV at any time after the transition filing has been made to IARD.
There are two kinds of transition filings: notice transition filers (federal advisers) and registration transition filers (state registrants). It is important to remember a transition filing is NOT a full ADV filing. Once a firm submits the transition filing to a state, it will populate the appropriate queue (transition notice or transition registration). At that time, the state is responsible for acknowledging that the firm is currently indeed a notice filer or registrant with that state. A state does this by entering an “effective date” or “registration date” for the firm and thus transitioning them onto the IARD system at which time they can go ahead and make their ADV filing on the system.
The effective date is the date the firm originally registered in a state or if a federal filer, the date should be either: 1) the date the federal registered adviser originally registered in a state if the firm was registered in such state pre-NSMIA and is now a notice filer or 2) the notice filing date if the firm originally filed with the state post-NSMIA as a notice filer. Ideally the state should populate IARD with the earlier of the adviser’s original registration date or notice filing date for the state.
Q. If I am in CRD and want to go to IARD, do I have to log out and then log into the other system?
No. A feature has been added to Web CRD and IARD that will allow the user to “toggle” between the two systems as needed.
Q. How do I begin the process of becoming a state registered filer on IARD?
IARD entitlement packets for state filers will be available on the NASDR IARD website. Fill out the entitlement forms by following the instructions in the entitlement packets. The forms will be mailed directly to the NASDR at the address provided in the packets. Your firm will then receive a password and further instructions from the NASDR at which time you may submit your electronic ADV filing through IARD.
The NASDR IARD website also has the IARD User’s Manual, a full step-by-step instructional text for using IARD. This manual can be downloaded and printed. Also available at the NASDR IARD website are the IARD Navigation Guides, which serve as quick “how to” guides on use of the system.
Q. Is there a separate accounting detail available for IARD?
No. It is integrated with the WebCRD detail.
Q. How do I print the electronic pages of my Form ADV correctly, without spaces in the printing of the pages?
The only way to do this is to print page by page to avoid rolling half ages of the Form ADV.
Q. Can an IA submit only one IARD Account Administrator Entitlement Form (AAEF) even though the NASDR entitlement process requests two be submitted? If not, can the second AAEF be filled out so the same person is the Alternate Account Administrator?
We recommend that an Alternate Account Administrator be designated when practical. If your firm does not have a sufficient number of employees to be able to designate an alternate account administrator, then sending in a second AAEF would not be necessary. The firm would send in the UAAF with only one account administrator designated and also send in one AEEF.