Investment Adviser Registration Requirements

 

The state of Colorado provides additional information here.

In order to transact business as an investment adviser or investment adviser representative in the State of Colorado, a person must be licensed or exempt from licensing under Section 11-51-402, C.R.S.

Who needs to be licensed?

• Investment Advisers (IAs): Firms that employ Investment Adviser Representatives.
• Investment Adviser Reps (IARs): Individuals who offer investment advice including financial planning services.

With whom do investment advisers and investment adviser reps need to be licensed?

• Regulatory responsibility for IAs and IARs is split between the Securities and Exchange Commission (SEC) and state securities regulators.
• In general, IA firms with more than $100 million in assets under management (Federal Covered Advisers or FCAs) are regulated exclusively by the SEC. However, an FCA with a place of business in this state, or who employs or otherwise engages an individual with a place of business in this state to act as an IAR, is required to make a notice filing with the Colorado Division of Securities.
• IA firms located in Colorado with assets under the $100 million threshold are regulated by the Colorado Division of Securities. Additionally, IA firms not located in Colorado with assets under $100 million who have more than five clients in Colorado are required to have a Colorado license.
• IARs with a place of business in Colorado who work for either an FCA or an IA in providing investment advice to customers need to be licensed in Colorado.  The SEC does not license IARs at the federal level.

Investment Advisor Registration Depository (IARD) Information

• IARD is the electronic filing system that provides regulatory oversight over investment advisers nationwide. It is operated by the Financial Industry Regulatory Authority (FINRA) and sponsored by the North American Securities Administrators Association (NASAA) and the SEC.
• IARD houses Forms ADV Part 1 and Part 2, corresponding amendments, and Form U-4, which are uniform forms used by investment advisers to register or license with the SEC and state securities authorities.

View Colorado Forms and Fees.

IA and IAR Licensing Overview

• Both an application and a fee are required in order to obtain an IA or IAR license. Annual renewal fees are required thereafter to maintain licensure.
• IAR license applicants are required to take and pass a minimum competency examination or provide proof of alternate qualifications.
• Licensees are subject to inspection or examination to confirm the adequacy of business records, ensure fiduciary duty records compliance, and prevent violations of the anti-fraud provisions of the Colorado Securities Act.

 

Initial Registration

• File Form ADV Parts 1 and 2 electronically through the IARD system.
• Ensure that at least one member listed on Form ADV Part 1 - Schedule A complies with the state’s examination requirements.
• Pay filing fee of $80.00. Fees are paid through IARD system.
• Submit any other information requested by the state’s Securities Division.

 

For SEC Notice Filing

• • • • • • • • • • • File Form ADV Parts 1 and 2 electronically through the IARD system.
                    • Pay filing fee of $80.00. Fees are paid through IARD system.

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