U.S. Securities and Exchange Commission
Division of Investment Management
1801 California Street, Suite 4800
Denver , CO 80202
(303)844-1000
(202)942-0691 |
| Investment Advisers (IA) must register with the SEC or with the State Division of Securities. IA firms with more than 25 million in assets under management are regulated exclusively by the SEC and are known as "Federal Covered Advisers" or "FCAs." |
| The definition of an investment adviser includes financial planners or others who, as a component of other financially related services, provide investment advisory service to others for compensation. Advice about securities and compensation for that advice is the key issue. Another part of the definition states that you are an investment adviser if you hold yourself out as providing investment advisory services to others for compensation. |
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Investment advisors must register electronicaly with Investment Adviser Registration Depository (IARD).This system has been developed according to the requirements of its sponsors, the Securities and Exchange Commission (SEC) and the North American Securities Administrators Association (NASAA).
Link: http://www.iard.com/
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| Investment Advisers with clients in more than one state must comply with requirements in both states. For example, a CO financial planner with a client in CA must comply with CO and CA state laws. |
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Colorado Department of Regulatory Agencies
Division of Securities
1560 Broadway, Suite 900
Denver , CO 80202
(303)894-2320
Fax: (303)861-2126 |
| Colorado regulates Investment Adviser firms ("state IAs") located in Colorado with assets under the $25 million threshold, with a place of business in Colorado, or 6 or more clients in Colorado. Investment adviser representatives ("IARs"), individuals with a place of business in Colorado who work for FCAs or state IAs in providing investment advice to customers, need a Colorado IAR license. |
| A Federal Covered Adviser 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. The notice filing requirement for FCAs is accomplished by checking the "CO" box on your electronic Form ADV. No paper forms are ordinarily required. |
| To be licensed in Colorado, the filing of IA and IAR license applications and fees is required. IAR license applicants are required to take and pass a minimum competency examination or provide proof of alternate qualifications. Licensees are subject to inspection, dishonest and unethical business practice rules, customer disclosure requirements and anti-fraud provisions. |
| The fees for both "FCAs" and "State-Registered IAs" is $60 annually. The fee for "IARs" is $10. |
| Do not file paper forms with the NASD, SEC or the Colorado Division of Securities. The forms and fees must be filed electronically directly with the IARD/CRD. |
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See the License Package for new Colorado Investment Advisers.
Link: http://www.dora.state.co.us/securities/ia_app.htm
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