Notice Filing

A notice filing is information an investment adviser registered with the Securities Exchange Commission may be required by law to submit to state securities authorities. Notice filings include a copy of the ADV form and other modifications that must be filed. This helps protect a consumer by ensuring the expertise of an adviser is valid and authentic.

States cannot require registration or other forms of qualification for investment advisers who ware registered with the SEC. The National Securities Markets Improvements Act of 1996 (NSMIA) does grant states the power to require SEC-registered investment advisers to file for notice purposes any documents that are filed with the SEC. This can compel registered investment advisers to submit to state authorities a copy of their ADV form along with any accompanying amendments. Such filings are referred to as notice filings.

An ADV form specifies the investment style, assets under management and key officers of an advisory firm. The ADV form has two main parts. The first component provides details about an adviser's education, business and any punitive actions that have occurred in the past ten years. The second component is comprised of the adviser’s service fees and investment strategies. It is essential that when consumers hire a professional to serve as their investment adviser that they request to see both parts of the ADV form.

Consumers can find out if their investment adviser must submit a notice filing to the state by consulting the requirements of their respective state-based securities authority.

An SEC-registered investment adviser may be compelled to also register with state securities authorities under some circumstances. Such instances include when an SEC-registered investment adviser furnishes investment advice to a state pension fund.

All SEC-registered investment advisers are required to submit an initial electronic filing with the Investment Adviser Registration Depository (IARD). When advisers initially file with IARD they must provide information about their respective regulatory status with state authorities including noticing filings or state registrations that are in effect. The fees charged to advisers to register with IARD are based on the number of regulatory assets they have under management.

Advisers can use the electronic filing of ADV forms to issue notice filings for additional states where they do business. Each state may charge fees for each notice filing. If an SEC-registered adviser chooses to withdraw their registration, the IARD system will automatically notify the states they have previously issued notice filings to and terminate their notice filing status.