SEC Open To Extending RIA State Registration Deadline To Early Next Year

Monday, April 11, 2011 23:15
SEC Open To Extending RIA State Registration Deadline To Early Next Year

Given the gray areas that still remain around which RIAs need to transfer to state supervision and which will remain with the SEC -- assuming that the SEC will still supervise advisors -- the deadline for state registration will probably move up.

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A public letter from Robert Plaze of the SEC to David Massey, the head of NASAA, urges the states to accept incoming advisor registrations as late as the first quarter of 2012.


The rationale is that the status of advisors to private and venture capital funds with under $150 million in assets has yet to be nailed down, and almost certainly won't be before July 21.


Until that happens, these advisors won't know where to register, and so Plaze suggests that they will need more time once the rules become clear.


Is this a way to telegraph advance warning that these advisors will end up under state supervision? Maybe. Since the SEC is still considering handing off all its advisory regulation to a yet-to-be-named self-regulatory organization as well as the states, it would certainly fit the modus operandi to carve off this segment of the advisory community first.


Either way, for those managing under $100 million in assets, the deadline to register with the states may not come for another year.

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