Investment Advisor State Regulations. My last blog post was on the topic of investment advisor registration in general and mentioned that individuals who are thinking about starting their own registered investment advisor firm need to consider whether their firm will be registered with the state or the federal regulators. Most firms will likely register with the state regulator in the home state where their principal place of business is located.
That also applies to currently registered state investment advisor firms. Currently registered investment advisors, need to consider the investment advisor state regulations to confirm they are not running afoul of their compliance registration requirements.
State of New York Investment Advisor Registration
However, not all states have the same requirements for registered investment advisor firms. For example, the state of New York will allow a firm to have an office location in that state and engage up to five clients who are residents of the state, and then register the firm in that state.
State of Illinois Investment Advisor Registration
Other states, require firms to register in their state even if they do not have a physical office location in the state but rather are ‘doing business’ there. For example, launching a specific marketing campaign targeting individuals, retirees, etc. in Illinois will require the investment advisor firm is registered in Illinois before engaging in such activity.
Understanding these important investment advisor state regulations can be confusing. Consider speaking with a registration professional at Registered Advisor Services who can help you understand these important RIA state regulations and provide proper guidance.
