A Registered Investment Adviser is an entity who, for
compensation in any form, engages in the business of
advising others of the value of securities or of the
advisability of investing in securities. Investment
Advisers receive a fee for their services, either hourly
or as a percentage of assets under management.
Investment Advisers and do not receive commissions.
Investment Advisers can receive incentive fees (a
percentage of the profits from an account) if certain
conditions are met.
If the Investment Adviser manages $25 million or more,
they register with the Securities and Exchange
Commission (i.e., “SEC”). If the Investment Adviser
manage less than $25 million they are still under the
regulatory control of the Securities and Exchange
Commission but they must register with the State
Securities Commission (or other regulatory agency) in
their state of domicile and with each state where they
solicit business, subject to diminimus rules.
Usually, Investment Adviser Representatives of any
Investment Adviser must register in each state they
solicit or do business in.
Registration and Exam Requirements
Essentially the steps in Investment Adviser registration
are:
A Registered Investment Adviser is an entity who, for
compensation in any form, engages in the business of
advising others of the value of securities or of the
advisability of investing in securities. Investment
Advisers receive a fee for their services, either hourly
or as a percentage of assets under management.
Investment Advisers and do not receive commissions.
Investment Advisers can receive incentive fees (a
percentage of the profits from an account) if certain
conditions are met.