Massachusetts Investment Advisor Registration Process
Last updated: August 27, 2024
How to Register as an Investment Advisor in Massachusetts
FINRA Entitlement Paperwork: To initiate the process of becoming a registered investment advisor in Massachusetts, individuals must first apply to the Financial Industry Regulatory Authority (FINRA) to create an account (Entitlement) for their WebCRD/IARD online system (the web application for the registration of RIA and its representatives). FINRA does not regulate or supervise RIAs, but the State of Massachusetts uses FINRA’s WebCRD/IARD system to process applications.
Form ADV Part 1: Electronically file Form ADV through IARD. Form ADV Part 1 discloses information about the RIA, including its ownership structure, client base, operational practices, any disciplinary incidents involving the advisor or their employees, and affiliations. This form acts as the online portal for submitting additional documentation within the system.
Form ADV Part 2A: Detail your RIA’s fee structure, services, disciplinary disclosures, and other firm information in Form ADV Part 2A. Form ADV Part 2A is also known as the Firm’s Disclosure Brochure.
Form ADV Part 2B: Form ADV Part 2B provides information about the advisor, such as their education, employment history, potential conflicts of interest, and any disciplinary actions.
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Minimum Net Capital for most advisers: According to State Code, "(a) An investment adviser registered or required to be registered under M.G.L. c. 110A who has discretionary authority over client funds or securities shall be bonded in an amount of not less than $10,000.00 by a bonding company qualified to do business in the Commonwealth. This requirement shall be waived provided the following conditions are met: 1. the investment adviser is registered in the jurisdiction where its principal place of business is located; and 2. the investment adviser meets the minimum financial requirements of the jurisdiction where its principal place of business is located." Source
Surety Bonds: Required
Fees: Submit a $300 fee for the firm's registration through FINRA IARD.
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