IAR Qualification Requirements
What Are the IAR Qualification Requirements? The Series 65 is the most direct path for individuals entering advisory work without an existing broker-dealer registration. Those who already hold or are pursuing a Series 7 (typically because they also work as a broker-dealer registered representative) can instead pair it with the Series 66 to satisfy both […]
Investment Adviser Representative (IAR)
What Is an Investment Adviser Representative (IAR)? While Form ADV registers the firm itself, each individual providing advisory services on the firm’s behalf must separately qualify and register as an Investment Adviser Representative (IAR), typically through Form U-4. Qualification is usually satisfied by passing the Series 65 exam, or the Series 66 combined with the […]
De Minimis Exemption
What Is the De Minimis Exemption for Investment Advisers? The De Minimis exemption exists to spare advisers from the burden of registering in every state where they happen to have one or two incidental clients, often the result of a client relocating rather than active solicitation in that state. Firms relying on the de minimis […]
Surety Bond
What Is a Surety Bond for RIAs? Not every state requires a surety bond, and among those that do, requirements often depend on factors like whether the firm has custody or discretionary authority over client assets — firms with greater control over client funds are more likely to face a bond requirement, and required amounts […]
Legal Entity Formation
Legal Entity Formation for RIAs (LLCs vs. Corporations) LLCs are a common choice for advisory firms due to their flexible management structure and pass-through taxation, while corporations (particularly S-corps for smaller firms) offer their own tax treatment options and a more formal governance structure that some founders prefer, particularly with multiple owners. Neither structure is […]
Form U-5
What Is Form U-5? The firm, not the individual, is responsible for filing Form U-5, and it must include the reason for termination along with disclosure of any pending investigations, customer complaints, or other reportable events involving that individual. This information becomes part of the person’s permanent record tied to their CRD number and is […]
Form ADV-W (Withdrawal)
What Is Form ADV-W? Filing Form ADV-W doesn’t happen instantly — it’s subject to a review period, and full withdrawal generally isn’t effective until 60 days after filing for state registrations, giving regulators time to raise questions if needed. Firms withdrawing due to a merger, acquisition, or business closure need to coordinate the timing of […]
Form ADV Part 1
What Is Form ADV Part 1? The Form ADV Part 1 is organized into standardized questions and checkboxes rather than free-form narrative, making it easier for regulators to aggregate and analyze data across all registered advisers. It’s further split into Part 1A (filed by all advisers) and Part 1B (additional questions for state-registered advisers). Information […]
IARD/CRD
What Are IARD and CRD? IARD, operated by FINRA on behalf of the SEC and state regulators, is specifically the platform advisers use to submit Form ADV filings and pay associated fees. CRD is the older, broader system originally built for broker-dealer registration that now also underlies IARD’s individual-level records — meaning a person’s CRD […]
Form U-4
What is the Form U-4? Unlike Form ADV, which registers the firm, Form U-4 registers the individual — it’s filed through the same IARD/CRD system but creates a personal registration record tied to that person’s CRD number, which follows them across firms throughout their career. The form requires disclosure of criminal history, regulatory actions, civil […]