Do you have questions about investment adviser requirements in Minnesota?
Between January 1 - March 30, 2012: Every investment adviser, regardless of his or her fiscal year end date, must file an amendment to FORM ADV to update the assets under management (AUM) section. Investment advisers then have until June 28, 2012 to file Form ADV-W to withdraw their registration with the SEC.
After the amendment is filed, the SEC will determine whether the adviser is required to withdraw SEC registration and register with the appropriate state(s).
Before June 28, 2012: An investment adviser may switch to state registration if the SEC determines that the adviser’s AUM is less than $100 million as reported on the Form ADV filed between January 1-March 30, 2012. The SEC has established a “buffer” for those investment advisers holding assets between $90 and $110 million in AUM.
An investment adviser must transition to state registration if the SEC determines that the adviser’s AUM is less than $90 million as reported on the Form ADV filed between January 1 - March 30, 2012.
Investment advisers and their representatives who are subject to state registration are required to meet the minimum qualifications standards. In addition, state registered investment advisers will be subject to the state’s net capital requirements, books and records requirements, and field examinations. State registered investment advisers are required to submit financial statements and designate at least one qualifying supervisor.
Minnesota Statutes 80A and Minnesota Rules 2876 require all investment advisers to be registered in Minnesota unless a specific exception applies. These laws set forth definitions for who qualifies as an “investment adviser”. The statutory framework is designed to hold investment advisers responsible for the conduct of investment adviser representatives. If you are uncertain as to whether or not you need to register, you may wish to consult with counsel to ensure compliance with the law.
The SEC has imposed by rule a “buffer” similar to that currently in place for advisers with between $25 million to $30 million in assets under management. The new buffer is for IAs with an AUM between $90 million and $110 million. An adviser may register with the SEC once it reaches AUM of $100 million. An adviser must register with the SEC if its AUM is $110 million or more. Once registered with the SEC, a mid-sized adviser can remain registered with the SEC as long as its AUM is at least $90 million. This means that a mid-sized adviser currently registered with the SEC may remain registered with the SEC if the adviser’s AUM is at least $90 million.
Fill out the complaint form and submit to the Department of Commerce.
The Minnesota Department of Commerce
Consumer Protection and Education Division
85 7th Place East, Suite 500
Saint Paul, Minnesota 55101
Please contact the Securities section at 651.539.1638 or email us at email@example.com if you have investment adviser registration questions.