Tuesday, March 08, 2011

Ohio Guides Advisers on the Switch from Federal to State Advisory Status under Dodd-Frank Act

Investment advisers transacting business in Ohio are being guided by the State on how to switch their advisory status from federal to state because their total amount of assets under management is (or will be) no more than $100 million on July 21, 2011, the date the “switch” is required by the Dodd-Frank Wall Street Reform and Consumer Protection Act. Some of Ohio’s preparation requirements are as follows: (1) switching investment adviser firms (IA firms) must electronically file with the IARD their most recent Form ADV Parts 1 and new Part 2 requesting OH registration, along with a $100 fee; (2) natural persons meeting the “investment adviser representative” (IAR) definition that do not qualify for exception must become licensed in Ohio by electronically submitting a Form U-4 and $35 fee through the CRD; (3) IA firms and IARs must meet the Ohio Securities Act’s minimum competency requirement that includes an assessment of good business repute; (4) IA firms must file a Form BR, Uniform Branch Office Form, for each place of business in Ohio, with the form having been filed before the place of business begins operating.

NOTE: Investment advisers registered with the SEC as of July 21, 2011 must file a Form ADV amendment by August 20, 2011 reporting their assets under management. Investment advisers no longer eligible for SEC registration must withdraw their SEC registration no later than October 19, 2011, by filing with the IARD a partial Form ADV-W, Notice of Withdrawal from Investment Adviser Registration.

For more information please see http://www.com.ohio.gov/secu. See "Notice to SEC Registered Advisers (PDF)" under featured alerts.

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