From the March 2007 issue of Investment Advisor • Subscribe!

The Registration Numbers

More On Legal & Compliance

from The Advisor's Professional Library
  • Privacy Policies and Rules Whether an RIA is SEC or state-registered, the firm must have policies and procedures in effect to protect clients’ privacy. Policies and procedures should explicitly require an RIA to send out its privacy notice each year.
  • Disaster Recovery Plans and Succession Planning RIAs owe a fiduciary duty to clients to prepare for disasters and other contingencies. If an RIA does not have a disaster recovery plan, clients’ financial well-being may be jeopardized.  RIAs should also engage in succession planning, ensuring a smooth transaction if an owner or principal leaves.   

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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