What is Notice Filing?

A notice filing is information that an investment adviser may have to register with state securities officials legally. Such adviser needs to be registered with the Securities Exchange Commission, and should include the ADV forms copy and other editions in his or her notice filings. The objective of the notice filing is to protect the interests of customers and make him sure that the adviser that he or she is dealing with has an authentic experience.

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When is Notice Filing Required?

Investment advisors who were enlisted with the SEC are not required to register or qualify for other kinds of dealings. As per the National Securities Markets Improvements Act, 1996, the investment advisors registered under SEC need to submit any documents that are submitted with the SEC. This influences investment advisors to file the ADV documents copy followed by other amendments to state regulations. These filings are known as notice filings.

Components included with a notice filing

The ADV document tells about the investment pattern, assets under management, and principal representatives of an advisory organization. The ADV form consists primarily of two components. The first element informs about the educational background, business operations, and any penalties taken against the advisor in the last 10 years. The second element includes the service charges and investment approach followed by the advisor. Clients who want guidance from their investment advisor should ask for both elements of the ADV form. 

By checking with the state-based securities officials, the customers can know if the investment advisor that they are planning to hire, needs to deposit a notice filing. When an investment advisor registered under the SEC offers advisory service to a state pension fund, then he or she is required to file with state securities officials. Every SEC-registered investment advisor must file an e-filing with the Investment Advisor Registration Depository in the initial stage. During the filing process, they need to share their regulatory status involving notice filings with state officials. 

Advisors need to incur a portion of fee for registering with IARD. The quantum of fees depends on the extent of assets possessed and managed by them. It is also possible for investment advisors to use the e-filing of ADV documents for registering notice filings for provinces they operate. The advisor may have to pay additional fees for every notice filing done in different states. In case, SEC-registered advisor opts for withdrawing the registration, the states where he or she has issued notice filings, will be informed by the IARD authorities for closing the current status of their notice filing.

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