generally must register with their home state and any other state in which they do business.
The main document in the registration of an investment advisor is Form ADV – a 78 page application. All advisors must register with the SEC and the States electronically through IARD,
a secure Internet based data system. The SEC processes registrations in 45 days but each state has different processing times. In addition to the ADV, states may require a passing
score on a competency examination for each individual acting as an investment advisor, payment of a fee for processing the applications, a bond or minimum net capital and certain other
disclosures about the firm. Investment advisors must renew their registration/license annually.
The penalties for practicing as an investment advisor without the proper licensing ranges based on the type of misconduct and the state but both civil and criminal penalties may apply.