Advisers who strictly do financial planning or that have less than $100 million under continuous and regular supervision or management are prohibited from registering with the SEC, and instead must register with the states.
Washington State Advisers
Investment advisers located in Washington must register prior to commencing business.
Out of State Advisers
Advisers with no place of business in Washington may have up to five Washington clients in a 12 month period without having to register. Out of state advisers should register prior to obtaining their sixth client and then all representatives doing business with Washington clients will have to register as well.
Per federal law, out of state advisers are not subject to Washington books and records and net capital requirements but they should represent in a cover letter with their application that they are in compliance with their home state requirements.
The Washington State Department of Financial Institutions Securities Division mandates applicants for investment adviser registration use the Investment Adviser Registration Depository (IARD).
The IARD is a national computer database operated by the Financial Industry Regulatory Authority (FINRA) and is used by the states and the Securities and Exchange Commission for registration purposes.
Applicants will partially file electronically through the IARD system and partially file on paper with the Washington State Securities Division.
All applications for investment adviser representative registration must be filed on IARD.
Sole Proprietors: Proof of Passing Qualifying Examinations
Sole proprietors must submit documentation that they have passed qualifying examinations within the last two years, been registered in Washington or another state within the last two years, or hold specified designations.
The qualifying examinations are:
- Series 65
- Series 7 and 66
The approved designations are:
- Certified Financial Planner (CFP)
- Chartered Financial Consultant (ChFC)
- Personal Financial Specialist (PFS)
- Chartered Financial Analyst (CFA)
- Chartered Investment Counselor (CIC)
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