Investment Adviser Representatives
In addition to the firm, individuals may also need to license if they provide investment advisory services in Utah or act as a partner, officer, director of an advisory firm, or occupy a similar status. The advisory services that would require an individual to be licensed as investment adviser representative include:
- Making recommendations or otherwise rendering advice regarding securities;
- Managing brokerage accounts or securities portfolios of clients;
- Managing an investment fund that invests in securities;
- Determining which recommendations or what advice regarding securities should be given;
- Soliciting, offering, or negotiating for the sale of or selling investment advisory services;
- Or supervises employees who perform any of the acts described above.
To determine whether a particular business would be required to license as an investment adviser, please review the Division’s "Questions to Ask" page or contact the Division at (801) 530-6600.
For more information on investment advisers and the licensing process, please review the information below.
"Investment Adviser Representative," is defined in 61-1-13(1)(r)(i) of the Utah Uniform Securities Act ("Act"), as "any partner, officer, director of, or a person occupying a similar status or performing similar functions, or other individual, except clerical or ministerial personnel, who: (a)(i) is employed by or associated with an investment adviser who is licensed or required to be licensed under this chapter; or (ii) has a place of business in this state and is employed by or associated with a federal covered adviser; and (b) does any of the following: (i) makes any recommendations or otherwise renders advice regarding securities; (ii) manages accounts or portfolios of clients; (iii) determines which recommendations or advice regarding securities should be given; (iv) solicits, offers, or negotiates for the sale of or sells investment advisory services; or (v) supervises employees who perform any of the foregoing."
Division Rule 164-4-2 of the Act outlines the requirements to license an Investment Adviser Representative. Following is a summary of this rule.
- For applicants seeking a license as an Investment Adviser Representative, the following must be filed with the IARD :
- Form U4 – Uniform Application for Securities Industry Registration or Transfer.
- Examination – Proof that investment adviser representative has passed the Series 65 or Series 66 examination.
- Filing Fee – $30.00 fee for investment adviser representative registration.
Investment Adviser Representative Examination Information
The following is the process by which an individual may take the Series 65 or Series 66 Examination. Exams may be required to become licensed as an Investment Adviser or Investment Adviser Representative.
- The applicant must request to take the exam from FINRA . Additional details from FINRA include Enroll for an Exam , Schedule an Exam , and On the Day of Your Qualification Exam .
- Upon successful completion of the Series 65 or 66, the applicant may apply for licensure as an Investment Adviser Representative with the Utah Division of Securities.
All Investment Adviser Representative licenses expire on December 31 of each year. To renew the license, the applicant must submit the $30.00 filing fee to the IARD along with the firm's renewal information.
All licenses (both Investment Adviser and IA Rep) expire each year on December 31. Toward the end of each calendar year, licensed Investment Advisers receive communication from FINRA regarding the renewal process. Licenses are automatically renewed so long as the Investment Adviser has enough funds in their IARD account to cover the renewal fees for the Investment Adviser and all of its IA Reps.
Additionally, investment advisers required to maintain a bond (for discretionary authority and/or custody) must file Form 4-5BIA with the Division. An adviser must also file an audited balance sheet for the firm If the adviser either: (a) charges fees of more than $1,200 and six months in advance, or (b) maintains custody.
Annual Amendments and Other Amendments
Investment Advisers must also file an Annual Amendment to the Form ADV. This is to ensure that the information in the Form ADV remains accurate. The Annual Amendment must be filed each year within 90 days from the end of the Investment Adviser’s fiscal year.
Additionally, the Investment Adviser must make an "Other Than Annual" Amendment promptly after any material changes to the Investment Adviser occurs. Lastly, while the Form U4 must also be amended promptly after any material changes or events occur for the IA Rep, no separate annual amendment is required for the Form U4.
Withdrawals and Terminations
To withdraw an application or terminate an Investment Adviser license, the firm must file Form ADV-W through the IARD system.
To withdraw license or application upon a representative's employment termination with an Investment Adviser, a Form U5, Uniform Termination Notice for Securities Industry Registration, must be filed with the IARD .