Series 63: Post-Registration Requirements

Post-Registration Requirements

In addition to the ongoing requirement to file the appropriate renewal forms on an annual basis, state-registered investment advisers must also meet ongoing requirements known as post-registration requirements. These requirements include:

• • Financial reports – Advisers may be required to file reports regarding their own personal and their firm’s financial condition. If the information filed on these forms becomes inaccurate at any point, updated reports must be filed as soon as possible.
• • Recordkeeping – Advisers are required to meet the recordkeeping requirements put in place by each state in which they operate.
• » Advisers must keep virtually every form of client record and marketing literature on file for five years.
• » If an adviser goes out of business, records must be kept at least an additional three years past the date of the firm’s closure.
• » Audits – All registered investment advisers are subject to audits by the states they’re licensed in at any time. As part of the audit, their state administrator may examine any records they deem useful. Additionally, some states may require the adviser to pay a reasonable fee to conduct the audit. Section 222 of the Investment Advisers Act of 1940 prevents a state Administrator from conducting an audit of a Federal Covered Adviser unless the adviser’s pr