Frustration mounts: Experts, RIAs identify six most important unknowns about the switch to state oversight

With many RIAs staring down the onerous task of registering in multiple states, while coping with a new, more demanding ADV form, frustration is mounting at the lack of information from the SEC and the lack of uniformity among the states..... it was only a few days ago that the SEC posted the first shred of information about the switch to state oversight. That shred of information was the news that the commission plans to release its proposed rules between October and December.

The most difficult issues are clearly those surrounding the dual registration requirements, that call for advisors with an office or five or more clients in a state to register in it. An advisory firm that would be required to register in 15 or more states under the law can opt to remain SEC-registered; there’s also an exemption for advisory firms with institutional clients. It’s not clear to what extent registering in a state subjects an advisor to the different state regulations.


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