Securities

REGISTRATION AND LICENSING

Investment Advisors  |  Investment Advisor Representatives  |  Federal Covered Investment Advisor

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Investment Advisors

Most persons engaging in the business of advising others, for compensation, either directly or through publications or writings, as to the value of securities or the advisability of investing in, purchasing or selling securities, or who promulgate analysis or reports concerning securities, must be registered as an investment advisor with the Secretary of State. With the passage of the National Securities Markets Improvement Act of 1996 (NSMIA), the regulation of investment advisors is divided between the states and the federal Securities and Exchange Commission ("SEC") -- advisors with less than $25 million in assets under management are generally regulated by the State, advisors with more than $25 million in assets under management are generally regulated by the SEC.

An application for registration consisting of Form ADV  PDF, Uniform Application for Investment Advisor Registration, an unaudited balance sheet and an Illinois Form entitled Additional Information required by Section 130.840 (a)(4)-(7) of the Rules for Registration as an Investment Advisor, must be filed with the Secretary of State together with the filing fee and a Form U-4  PDF Uniform Application for Securities Industry Registration or Transfer for each investment advisor representative employed by the investment advisor. The applicant must be or employ at least one examination-qualified principal who will supervise investment advisory activities in this State. The investment advisor will be registered when the application is complete and accurate provided there are no statutory disqualifications.

Changes that render information on the application inaccurate must be reported to the Secretary of State within 10 business days of the occurrence of the change. An audited financial statement must be filed with the Secretary of State annually no later than 90 days after the registrant's fiscal year end. Registrants must file annually for re-registration.

Fees:

Application Fee: $400

Renewal Fee: $400

Branch Office Fee: $20 for each office in this State.

Investment Advisor Representative Fee: $150.

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Investment Advisors Representatives

Investment advisor representative means, with respect to an investment advisor who is required to register under this Act, partner, officer, director of(or a person occupying a similar status or performing similar functions), or other natural person employed by or associated with an investment advisor, except clerical or ministerial personnel, who in this State:

1. makes any recommendations or otherwise renders advice regarding securities;
2. manages accounts or portfolios of clients;
3. determines what recommendations or advice regarding securities should be given; or
4. supervises any employee who performs any of the foregoing.

With respect to a federal covered investment advisor, "investment advisor representative: means any person who s an investment advisor representative with a place of business in this State as such terms are defined by the Securities and Exchange Commission under Section 203A of the Federal 1940 Investment Advisors Act.

Effective July 8, 1997, Section 8.D(10) of the Act was amended to require registration and re-registration of investment advisor representatives conducting business in the State of Illinois.

Section 8.D-5 of the Act and Section 130.839 of the Rules, set forth the procedures for registration of investment advisor representatives. Each investment advisor or federal covered investment advisor must file a Form U-4  PDF on behalf of each investment advisor representative; a filing fee of $150 each and proof of passing one of the examinations or receiving one of the designations set forth in Section 130.843 of the Rules.

Copies of the Law & Rules are available on this website.

Changes that render information on the application inaccurate must be reported by filing an amended
Form U-4  PDF with the Secretary of State within 10 business days after the change occurs. A registered investment advisor representative may transfer from one registered investment advisor or federal covered investment advisor to another by giving notice to the Secretary of State. Form U-5  PDF, Uniform Termination Notice must be filed with the Secretary of State within 30 days of the termination of an investment advisor representative. Registration/Licensing must be renewed annually in conjunction with the renewal of the registered investment advisor or annual notification filing of a federal covered investment advisor.

Fees:

Filing Fee: $150

Renewal Fee: $150

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Federal Covered Investment Advisor

Most persons engaging in the business of advising others, for compensation, either directly or through publications or writings, as to the value of securities or the advisability of investing in, purchasing or selling securities, or who promulgate analysis or reports concerning securities, must be registered as an investment advisor with the Secretary of State or with the Securities and Exchange Commission. The Illinois Securities Law was amended effective July 8, 1997, to reflect changes necessitated by the passage of the National Securities Markets Improvement Act of 1996, wherein the regulation of investment advisors is divided between the states and the federal Securities and Exchange Commission ("SEC") -- advisors with less than $25 million in assets under management must be registered in the State of Illinois and investment advisors with more than $25 million in assets under management are referred to as "Federal Covered Investment advisors" and must be registered with the SEC.

A Federal covered investment advisor shall file with the Securities Department copies of page 1 of Part I of the most recent Form ADV  PDF, Schedule E, and Schedule I to Form ADV  PDF with a notification filing fee of $400 plus $20 for each place of business in the State of Illinois and a Form U-4  PDF, Uniform Application for Securities Industry Registration or Transfer and $150 fee to register each Investment Advisor Representative with a place of business in the State of Illinois. On each anniversary of the initial notification filing, each Federal covered investment advisor shall file with the Securities Department the Annual Notification filing form mailed to them by the Department and Schedule I to Form ADV  PDF, (or copies of page 1 of Part I of the most recent Form ADV  PDF, Schedule E and I to Form ADV  PDF) with a notification filing fee of $400 and $150 for renewal of each Investment Advisor Representative.

Amendments to page 1 of Part I of Form ADV  PDF shall be filed with the Securities Department at the same time they are filed with the Securities and Exchange Commission. In the event the federal covered investment advisor changes the form of its organization it shall pay the $200 filing fee required pursuant to Section 8.H of the Act. Each investment advisor representative of a federal covered investment advisor is also required to be registered. See Investment Advisor Representatives.

Fees:

Application Fee: $400

Renewal Fee: $400

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DISCLAIMER
The Secretary of State, Illinois Securities Department or their information providers shall not be liable regardless of the cause or duration, for any errors, inaccuracies, omissions or untimeliness of the information, or for any delay or interruption in the transmission thereof to the user, or for any claims or losses arising therefrom.