New Jersey Investment Adviser Registration

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New Jersey Investment Adviser Surety Bond

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The State of New Jersey Office of the Attorney General, Bureau of Securities , administers the securities program and has oversight of the professional investment adviser and representatives registration, as well as handling of consumer complaints and fraud prevention of investment advisers. According to the New Jersey Uniform Securities Law 49:3-56, investment advisers must meet the conditions set forth in the Act which includes registration.

New Jersey Bureau Of Securities

The New Jersey Bureau of Securities is a state securities regulatory agency responsible for oversight of New Jersey State broker dealers and licensed investment advisors. They are also charged with protecting investors against investment fraud. In addition to passing and promulgating regulations covering brokers and investment advisors, the New Jersey Bureau of Securities can also, under its authority, bring regulatory actions against brokers engaged in fraudulent activity. The Chief of the Bureau is charged with oversight of New Jersey Uniform Securities Law, regulating the offer and sale of securities, and has his staff broken down into six units:

  • Investment Advisor and Broker Dealer Registration
  • Enforcement and Complaints (Investment Advisor with a series of customer complaints or involved in a pattern of selling or marketing securities in violation of New Jersey Uniform Securities Law and
  • Investor Education .
  • Failure to appear at a Bureau hearing or respond to Bureau requests for documents and information can result in suspension or, in egregious circumstances, a permanent bar from the New Jersey Securities industry. N.J.S.A. 49:3-58 states that the Bureau Chief may by order deny, suspend, or revoke any registration if he finds:

  • that the order is in the public interest
  • The summary penalty issued by the Bureau stated that the investment advisory violated Uniform Securities Laws of the State of New Jersey by:

  • Selling and offering unregistered securities
  • More Surety Bond Questions

    Check out our FAQ page or page. Should you need or choose to buy a surety bond, buy from us. SuretyGroup.com has been underwriting surety bonds throughout the U.S. for more than 35 years. When you work with us, you enjoy the unique benefit of dealing with a team of highly experienced surety agents with in-house underwriting authority. This allows you to receive competitive, low rates, quick approvals, and immediate bond delivery. In most cases, your bond will be delivered within 24 hours after you apply for it.

    For a downloadable application

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    Hedge Fund Laws Starting A Hedge Fund News And Events

    New Jersey Hedge Fund Managers Generally Exempt From Registration

    Hedge fund managers in New Jersey generally do not need to register as investment advisors with the New Jersey Bureau of Securities. New Jersey actually has a de minimis rule which provides that managers, with a place of business in New Jersey, do not need to register as investment advisors provided that that have no more than 5 clients over a 12 month period.

    While there is no specific definition of what the term client means, the general definition at the federal level and with many states is that a hedge fund counts as a single client and there is no need to look through to count the underlying investors in the fund as clients. Even though this interpretation is generally accepted at both the SEC and state levels, a hedge fund manager may want to request a no-action letter from the New Jersey Bureau of Securities. Such manager should discuss this option with their hedge fund attorney.

    The specific statute provides:

    A person shall be exempt from registration as an investment adviser or from making a notice filing required by section 10 of P.L.1967, c.93 , if:

    The person has a place of business in this State and during any period of 12 consecutive months that person does not have more than five clients, who are residents of this State, other than those specified in subparagraph of paragraph of subsection of section 2 of P.L.1967, c.93 or

    Forms And Information Required To Register:

    New financial advisor joins Wisdom Antonelli Financial Group
    • Investment Advisor Firm
    • Form ADV and any associated schedules
    • If an investment advisor does not have custody, an uncertified balance sheet with a notarized certification dated within 60 days of the date of application to the New Jersey Bureau of Securities
    • Sample investment advisory contract
    • URL for the investment advisor firm
    • Designation of supervisor
    • Certificate of formation/articles of incorporation and
    • If New Jersey is not the investment advisor firms home state, then a written declaration that the investment advisor firm is in compliance with its home states requirements for books and records, bonding and net capital.
  • Investment Adviser Representative
  • Independent contractors acknowledgement and
  • A fingerprint card .
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    The New Jersey Bureau Of Securities

    New Jersey Lawyer – Securities Law

    The New Jersey Bureau of Securities enforces New Jersey’s securities laws and regulations. Its overarching mission is to protect investors from securities fraud. The bureau registers, examines, investigates, and brings enforcement actions against brokerage firms and individuals who are believed to have committed securities fraud. It has a staff of about 45 employees working in six units: 1) broker-dealer registration 2) investment adviser registration 3) examinations 4) regulatory 5) enforcement and 6) complaints/investor education.

    Focus on Investor Education

    The bureau emphasizes investor education. Under the old adage an ounce of prevention is worth a pound of cure, an informed consumer may be among the most effective weapons against securities fraud. As a result, the bureau recently re-designed its website to make it more user friendly. The new website makes it easier for a consumer to find a myriad of investor education materials, look up the background of a particular financial professional or firm, or file a complaint against a financial professional or firm with the bureau.

    To continue reading, download the PDF.

    This article was originally published in the December 2015 issue of the New Jersey Lawyer, a publication of the New Jersey State Bar Association, and is reprinted here with permission.

    What Is A New Jersey Investment Adviser Bond

    New Jersey investment adviser bonds ensure that principals perform all obligations as an investment adviser licensed under the New Jersey Uniform Securities Law. Specifically, the bond guarantees that the principal accounts for all money and securities entrusted to him or her for the use and benefit of consumers.

    If the principal fails to conduct business lawfully, a claim can be filed against the bond. The bond protects consumers from financial loss up to the full bond amount if the claim is validated.

    Ready to get bonded? Apply for a free bond quote now!

    Whats the fine print?

    The surety bond is in effect for one year and must be renewed annually unless claimed against or cancelled. A surety can cancel the bond if they give the principal and obligee 90-days written notice.

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    New Jersey Statutes Title 49 Sale Of Securities 49 3

    Current as of February 19, 2021 | Updated by FindLaw Staff

    Welcome to FindLaw’s Cases & Codes, a free source of state and federal court opinions, state laws, and the United States Code. For more information about the legal concepts addressed by these cases and statutes, visit FindLaw’s Learn About the Law.

    New Jersey Bureau Of Securities Announces The Launch Of The Annual Examination Of Investment Advisers

    How to Become a SEBI Investment Advisor

    Amy G. Kopleton, Acting Bureau Chief

    For Further Information:

    NEWARK Acting Attorney General Matthew J. Platkin and the Bureau of Securities within the Division of Consumer Affairs today announced the release of the Bureaus Annual Investment Adviser Examination.

    The Bureau, which regulates New Jerseys securities industry, uses the examination as a risk assessment tool for the almost 900 registered registered investment adviser firms that manage hundreds of thousands of clients investment accounts in the State.

    The annual examination is a critical part of investor protection. It helps the Bureau proactively identify and address potentially problematic practices before investors are harmed, said Acting Attorney General Platkin. New Jerseys Uniform Securities Law and related regulations permit the Bureau to conduct both routine and for-cause examinations of investment advisers, as well as broker-dealers.

    Firms are required to provide responses to questions about their business activities, including portfolio composition, compliance with regulatory requirements, and customer complaints. The questions are updated each year to reflect changes in the investment adviser industry and the Bureaus examination priorities.

    This years examination questions include inquiry about investment adviser management of non-fungible tokens NFTs, which are increasing in popularity within the securities, cryptocurrency, and digital space.

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    New Jersey Revised Statutestitle 49

    Disclaimer: These codes may not be the most recent version. New Jersey may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.

    New Jersey Registered Investment Advisor Firm & Investment Adviser Representative Business Formation And State Registration Requirements

    Puff, Sierzega & MacFeeters represents Registered Investment Advisors, from small boutiques and single advisor businesses to multi-advisor companies, in forming a RIA business and complying with New Jerseys registration requirements. Our firm provides a wide range of services to meet the legal, compliance and business needs of Registered Investment Advisors in the State of New Jersey. These services include advising on aspects of organization, registration and regulatory compliance matters.

    Our attorneys can provide individualized consultation and documentation, as well as a broader array of matters, including but not limited to the following:

    Business Formation

    • Registration with the State of New Jersey

    • IARD Registration

    • Form ADV Parts I and II compliance

    • Brochure rule compliance

    • Registration and regulatory filings and compliance

    • Drafting Service Agreements

    Entity formation and ownership structure

    • Corporate governance

    • Compliance policies, procedures and supervisory manual

    • Social media usage and restrictions

    • Fiduciary requirements and exemptions

    • Buy & sell agreements and options

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    Surety Bond And Registration Requirements:

  • Payment of a filing fee and application for registration through IARD with any required attachments.
  • Sample copies of a written client contracts and/or agreements.
  • Provide sample copies of promotional pamphlets or other advertising materials.
  • Provide a notarized financial statement acknowledging its accuracy.
  • Obtain a $35,000 surety bond if the net capital is less than $35,000 and has custody of client funds or securities.
  • Obtain a $10,000 surety bond is required if the minimum net worth is less than $10,000 and has only discretionary authority over client funds.
  • Copy of certificate of formation or articles of incorporation.
  • A written declaration that the applicant is in compliance with the requirements of the home state as to its records, books, bonding and net capital.
  • Licenses expire on December 31 of each year.
  • De Minimis- applicants are not required to register until there are five clients or more in any consecutive 12-month period.
  • How Much Does An Investment Adviser Bond Cost In New Jersey

    Gary Scheer, managing member and sole investment adviser representative ...

    The New jersey Division of Consumer Affairs Bureau of Securities requires investment advisers to post surety bonds to legally work within the state. The required bond amount varies and is based on the volume of funds the adviser has authority over. Applicants must verify their required bond amount with the state prior to bonding.

    Depending on the bond amount, an applicant with exceptional credit may qualify to pay a premium as little as 1% of the total bond amount. The best way to find out exactly how much youll pay is to apply for a free bond quote now!

    200,000 SATISFIED CUSTOMERS NATIONWIDE

    NO HIDDEN FEES

    Fill out our online bond request form or give us a call at 1 308-4358 to speak with a surety specialist. We can typically provide you with your free, no-obligation bond quote within 1 business day of submitting an application.

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    Search New Jersey Statutes

    The General Assembly finds that the distribution of equipment primarily designed for or used in agriculture in the State of Georgia vitally affects the general economy of the state and the public interest and public welfare and, in the exercise of its police power, it is necessary to regulate equipment primarily designed for or used in agriculture and related equipment manufacturers, distributors, dealers, and their representatives doing business in Georgia in order to prevent frauds, unfair business practices, unfair methods of competition, impositions, and other abuses upon its citizens.

    New Jersey Investment Advisor Registration Process

    Investment Advisor Representative Registration Requirements:

    • Licensing Requirements: Series 65, Series 66 and Series 7 combined, or CFP, CFA, CIC, ChFC, PFS.
    • Each investment advisor representative must submit the form U-4 and ADV Part 2B.

    General Firm Registration Requirements

    • Payment of all State of New Jersey registration filing fees
    • FINRA Entitlement paperwork
    • In order to file a registered investment adviser application with the state of New Jersey, one must first apply to the Financial Industry Regulatory Authority for an account to their WebCRD/IARD on-line system . While RIAs are in no way regulated or supervised by FINRA, the state of New Jersey uses FINRAs WebCRD/IARD system to process applications.
  • The Form ADV Part 1 is the on-line component to your Firms registration documentation. Note: The Form ADV Part 1 primarily discloses information about the FIRM. Individual information is primarily disclosed in the Form U4 as detailed below. The Form ADV Part 1 is also the vehicle to upload your Firms Form ADV Part 2A and Form ADV Part 2Bs .
  • The Form ADV Part 2A acts as your Firms Brochure. It is a narrative description of your services, fees, disciplinary disclosures, as well as several other Firm details. The Form ADV Part 2A must be provided to all Clients and Prospective Clients. The state of New Jersey requires that the ADV Form 2A be written in plain English and easily understood by your clients.
  • Client Advisory Contract
  • Policies and Procedures Manual
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    Get Your Registered Investment Adviser License In New Jersey By Taking The Required Exam

    A new IA firm that manages less than $100 million in assets and provides service to local clients in the state of New Jersey operate in accordance with New Jersey Uniform Securities Law and register at the state level with the New Jersey Bureau of Securities. If the firm reaches a point where it manages more than $100 million in assets, is will register at the federal level with the Securities and Exchange Commission . The state of New Jersey and the SEC both have the ability to waive exam requirements for IARs that hold one of these designaitons:

    • Chartered Financial Consultant

    IARs should register using one of the forms listed:

  • Schedule the exam through one of the Prometric or Pearson Professional Center testing locations in New Jersey.
    • You must schedule the exam within 120 days of registration
    • You will not be allowed to schedule more than one exam to be taken on the same day
    • Arrive at the testing center at least one hour prior to your scheduled exam time on the scheduled date.

    State Investment Adviser Registration Information

    How I Became a Financial Advisor

    All states require that investment advisers and investment adviser representatives conducting business in the state register with the states securities regulatory authority . Approximately 17,500 investment advisers are so registered. Registration standards are complex and you should consult an attorney if you have questions about whether you or your firm must register.

    Applicants for investment adviser registration must file Form ADV, Parts 1 & 2, through the Investment Adviser Registration Depository and may be required to submit additional materials . Applicants should heed the instructions for completing Form ADV and should update it over time per the forms instructions.

    An applicant for registration as an investment adviser representative must file a Form U4, which also has its own completion instructions. The Form U4 must show that the applicant has passed the required competency exams or holds an active, acceptable professional designation.

    Registration fees must be paid electronically through the IARD system.

    For your convenience, general investment adviser registration information can be found for each state at the links below. NASAA makes no representation as to the accuracy of this information readers and their counsel should consult the laws and rules of each state to determine their registration requirements. Any questions about registration requirements may be directed to each states securities regulator.

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    Welcome To The Investment Adviser Registration Depository

    Welcome to the IARDTM website. This site provides investment adviser firms and representatives with a variety of information about the Investment Adviser Registration Depository system. IARD is an electronic filing system that facilitates investment adviser registration, exempt reporting adviser filing, regulatory review, and the public disclosure information of registered investment adviser firms and individuals. FINRA is the developer and operator of IARD. The system has been developed according to the requirements of its sponsors, the Securities and Exchange Commission and the North American Securities Administrators Association , along with those of an Industry Advisory Council representing the investment adviser firms.

    Information about investment advisers for the investing public can be found on the Investment Adviser Public Disclosure website.

    Policies And Procedures Manual

    The firms written Policies and Procedures manual is the guiding supervisory document that your firm will use to maintain and enforce your firms internal policies on all aspects of your business, from the handling of client complaints to the training of new IARs. It also houses your firms other policies, including but not limited to, Business Continuity Plan, Information Security Policy, Proxy Voting Policy, and Insider Trading Policy.

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