Corporate & Securities Law

By Jim Hamilton

Michigan Adds Registration Requirements for Investment Adviser Representatives in Light of Upcoming New Securities Act

Registration requirements for investment adviser representatives are being imposed for the first time in Michigan in light of adoption of the State's new Uniform Securities Act on October 1, 2009. Similarly, requirements pertaining to broker-dealers, agents, investment advisers, federal covered investment advisers and investment companies are clarified. NOTE: These requirements are effective by transition order of the Michigan Office of Financial and Insurance Regulation until new rules are proposed for adoption. To see the full transaction order, see Bulletin 2009-14-SEC.

Investment adviser representatives not exempt from registration in Michigan may temporarily transact business in the State without registering if the representatives are employed by or associated with a Michigan-registered or exempt investment adviser and the representatives successfully complete the registration process by July 1, 2010. NOTES: (1) Web CRD/IARD is expected to be ready to accept investment adviser representative applications in November, 2009; (2) investment adviser representatives should begin the application process January 1, 2010 to meet the July 1, 2010 deadline; and (3) investment adviser representatives whose applications are not approved by July 1, 2010 will not be permitted to transact business in Michigan after July 1, 2010.

Investment adviser representative applicants for registration must, in addition to complying with Web CRD/IARD requirements, file a consent to service of process, pay a $65 fee, and take and pass within the two-year period immediately preceding their application filing date reflected on Web CRD/IARD records, either the Uniform Investment Adviser State Law Exam (Series 65) or the Uniform Combined State Law Exam (Series 66) and the General Securities Representative Exam (Series 7). Applicants registered within the past two years as investment adviser representatives in another state requiring registration are not required to comply with the Michigan exam requirement. The Michigan exam requirement is waived for persons professionally designated as a Certified Financial Planner (CFP), Chartered Financial Consultant(ChFC), Master of Science and Financial Services (MSFS), Chartered Financial Analyst (CFA), Personal Financial Specialist (PFS) or Chartered Investment Counselor (CIC). NOTE: Investment adviser representative applications are not considered "filed" until the required documents and fee have been received by the Administrator who will report his or her approval through Web CRD/IARD.

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Full post as published by Jim Hamilton's World of Securities Regulation on September 08, 2009 (boomark / email).