Compliance Solutions for Investment Advisers

Changes to Massachusetts IAR Registration?

On March 15, 2013, the Massachusetts Securities Division (the “Division”) filed regulations proposing amendments with respect to investment adviser representative (“IAR”) applications.  If made effective, the IAR application process would change and may affect your firm’s registration process for all future IAR applications filed with our office.

Specifically, the proposal would require an applicant, as part of an application for IAR registration, to complete, sign, notarize, and return to the Division a “CORI Acknowledgement Form.” An application would not be deemed complete until the Division has received the form.  The form would then be used as authorization to conduct a review of the Massachusetts Criminal Offender Record Information (CORI) of the applicant.

This proposal would affect the registration procedure for all applications for IAR registration.  We are seeking comments from financial firms that may be affected by this regulatory change.  In addition, the proposal contains other updates and changes to the investment adviser regulations.  All comments on those proposals are also requested.

The Request for Comment and the Proposed Regulations are available on the Division’s website at http://www.sec.state.ma.us/sct/sctidx.htm.    The comment period will end on Wednesday, May 15, 2013.  Additionally, a public hearing will be conducted at 10:00 AM on Wednesday, May 15, 2013 to receive any oral comments, views and arguments relating to the proposed action.  Details as to the hearing location and the comment submission process are available in the Request for Comment referenced above.

 

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