Changes to ADV 1 – “Mid-Sized” Advisers

The revised Instructions to Item 2 in the ADV Part 1 requires certain “mid-sized” advisers (e.g., those advisers with between $25 million and $100 million in regulatory AUM) to remain registered with the SEC. The Instructions state that a  mid-sized adviser must register (or remain registered) with the SEC if they meet at least one of the following requirements:

  1. You are not required to be registered as an investment adviser with the state securities authority of the state where you maintain your principal office and place of business pursuant to that state’s investment adviser laws. If you are exempt from registration with that state or are excluded from the definition of investment adviser in that state, you must register with the SEC. You should consult the investment adviser laws or the state securities authority for the particular state in which you maintain your principal office and place of business to determine if you are required to register in that state.
  2. You are not subject to examination by the state securities authority of the state where you maintain your principal office and place of business. To determine whether such state securities authority does not conduct such examinations, see: http://www.sec.gov/divisions/investment/midsizedadviserinfo.htm.

At present, the first condition would apply to advisers located in the State of Wyoming and the second condition would apply to advisers located in the State of New York.

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