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Investment Adviser Representative Registration FAQ

 
What is the fee for filing an application for registration as an investment adviser representative (IAR)?
Do I need to provide a fingerprint card to register as an IAR?
Do employees or those associated with an Investment Adviser need to be registered as an IAR?
Do employees of or persons associated with a Federal Covered Investment Adviser have to register as IAR's in Michigan?
How do I register as an IAR?
Do I need to take the S65 examination to register as an IAR?
Where do I get information on the examinations and/or schedule an exam?
What are the acceptable professional designations?

How long does it take to process an investment adviser representative registration application? 

 
 
Question What is the fee for filing an application for registration as an investment adviser representative (IAR)? 
Answer Before October 1, 2012, the fee is $65.00.  See, MCL 451.2410(4) for additional information.
   
Question Do I need to provide a fingerprint card to register as an IAR?
Answer No; however, OFIR will conduct a background check of various criminal data bases with respect to each IAR applicant.
   
Question Do employees or those associated with an Investment Adviser need to be registered as an IAR?  
Answer

Yes, if they are not otherwise excluded or exempt. For example, an investment adviser employee or those associated with the investment adviser who perform any of the following duties must register as an IAR (unless otherwise exempt or excluded):

    • Providing investment advice or the person holds himself/herself out as providing investment advice;
    • Managing client accounts or portfolios;
    • Soliciting and/or offering investment advisory services;
    • Determines which recommendation or advice regarding securities should be given;
    • Receiving compensation to solicit, offer or negotiate for the sale of or for selling investment advice;
    • Supervising employees who perform any of the foregoing.

See MCL 451.2102a(f).

   
Question Do employees of or persons associated with a Federal Covered Investment Adviser have to register as IAR's in Michigan? 
Answer

Yes, if (a) the Federal Covered Investment Adviser is required to “notice file” under MCL 451.2505, and (b) the employee or associated person falls within the definition of an “Investment Adviser Representative” under MCL 451.2102a(f).
No, if the Federal Covered Investment Adviser is exempt from the notice filing requirements of MCL 451.2405(3), because it satisfies the conditions of MCL 451.2405(2). In this case, the employee/associated person will not have to register as an IAR in Michigan because MCL 451.2404(2)(a) exempts the individual from the registration requirements of MUSA.
MCL 451.2102a(f) excludes from the definition of “Investment Adviser Representative” an individual who is employed by or associated with a Federal Covered Investment Adviser unless (a) the individual meets the definition of an “Investment Adviser Representative” under 17 C.F.R.§ 275.203A-3 or (b) the individual has a place of business in Michigan and is not a “supervised person” as that term is defined in Section 202(a)(25) of the Investment Advisers Act of 1940.

In summary, if an individual meets the definition of an “Investment Adviser Representative” and is employed by or associated with a Federal Covered Investment Adviser that is excluded from notice filing in Michigan, the individual will not have to register as an IAR in Michigan. However, if the individual meets the definition of an “Investment Adviser Representative,” is employed by or associated with a Federal Covered Investment Adviser who is required to notice file in Michigan, and the individual has a place of business in Michigan, the individual will have to register in Michigan as an IAR.

   
Question How do I register as an IAR?
Answer

You will need to file a U-4 form through FINRA's CRD system.  There are instructions regarding this process found on www.iard.com in the IARD Firm's User Manual, Chapter 9.

 
Question Do I need to take the S65 examination to register as an IAR?
Answer

Yes, unless you have taken and passed either the Series 65 or Series 66 examination within the last two years, or been registered in another state as an IAR within the last two years, as long as the other state required the S65 or S66 examination or have an acceptable professional designation or you can certify to OFIR that you have been continuously performing IAR services for which IAR registration is required under the new ACT, with an IA firm, with no more than a two-year break in service since you passed either the Series 65 or Series 66 examination.

   
Question Where do I get information on the examinations and/or schedule an exam?
Answer Examination information can be found on www.finra.org
   
Question What are the acceptable professional designations?
Answer They can be found in the 3rd Transition Order No. 09-070-M issued by OFIR on Dec. 18, 2009.  The designations can also be found on the U-4 Form.
   
Question

How long does it take to process an investment adviser representative registration application?

Answer

There are no automatic approvals, therefore it can take 2-4 weeks from the date the application is pending.

 
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