From the March 2007 issue of Investment Advisor • Subscribe!

The Registration Numbers

More On Legal & Compliance

from The Advisor's Professional Library
  • Updating Form ADV and Form U4 When it comes to disclosure on Form ADV, RIAs should assume information would be material to investors.  When in doubt, RIAs should disclose information rather than arguing later with securities regulators that it was not material.
  • Client Communication and Miscommunication RIA policies and procedures must specify what type of communications should be retained. The safest course of action is for RIAs to retain all communications—to clients, from clients, and about client accounts.  To comply with fiduciary obligations, communications must be thorough and not mislead.

Here's a breakdown of how, and where, advisors and brokers are registered. The numbers were presented by Melanie Lubin, Maryland's Securities Commissioner, at the ALI-ABA investment advisor regulation conference in Washington in late January.

- 24,481 total advisors are listed on the Investment Adviser Registration

Depository (IARD)

- 10,977 advisors are SEC registered only

- 192 advisors are dually registered with the states and SEC

- 13,312 are state registered advisors

- 1,109 firms are B/Ds and advisors

- 225,000 are B/D reps

- 200,000 reps are also registered as B/D agents

- 4,000 reps are associated with both state and federally registered firms

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