Wednesday, June 30, 2010

Investment Adviser Public Disclosure Enhancement

The US Securities and Exchange Commission (SEC) has expanded access to their public database for Registered Investment Advisers. You can now look up the records of any person registered as an Investment Adviser Representative (IAR) in addition to the records for Registered Investment Advisers (RIA). Investment Advisory Representatives (IAR) are the people who work in Registered Investment Advisory firms.

The distinction is important because many, if not most Registered Investment Advisers are companies (corporations, Limited Liability Companies, etc) whereas Investment Advisory Representatives (IARs) are always people. Previously the public did not have convenient, direct access to the registration records of individuals affiliated with Registered Investment Adviser firms.

One of the items on the checklist of anyone seeking to hire someone to provide investment advice should be a check of the individual’s registration records.

Registration records include:
· Full name, office address, phone number
· Names of prior firms the person was affiliated with including dates
· Whether the person has any regulatory disclosures i.e., black marks

Here is a link to the specific search page at the SEC website: SEC Investment Adviser Public Disclosure

Questions? kimm@sweetwaterinv.com

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