February 8, 2021 GUIDANCE ON MANDATORY REGISTRATION

TATE OF NEW YORK

OFFICE OF THE ATTORNEY GENERAL

LETITIA JAMES

DIVISION OF ECONOMIC JUSTICE

ATTORNEY GENERAL

INVESTOR PROTECTION BUREAU

February 8, 2021

GUIDANCE ON MANDATORY REGISTRATION FOR INVESTMENT ADVISER

REPRESENTATIVES (13 NYCRR 11.4, 11.6 AND 11.7)

EFFECTIVE FEBRUARY 1, 2021.

UPDATED

The implementation period runs through December 2, 2021 with an application submission

deadline of August 31, 2021. The Department encourages applicants to submit Form U4

applications as soon as possible, or if requesting a waiver after February 27, 2021, as we

anticipate a longer than usual review process through the implementation period.

OPEN EXAM WINDOWS ON CRD. Applicants requesting an exam waiver should apply after

February 27, 2021 in order to avoid opening an exam window on CRD and being charged an

examination fee unnecessarily. Beginning February 27, 2021, FINRA will temporarily modify

CRD for NY only RA registration requests to allow the applicants who qualify for an exam waiver

to avoid opening a window.

The New York State Department of Law (the “Department”) recently adopted new regulations, that

go into effect February 1, 2021, governing registration and examination requirements of natural

persons representing investment advisers including principals, supervisors and representatives

thereof, solicitors and representatives thereof and certain investment adviser representatives of

federally covered investment advisers. Specifically, the adopted rule provides for (i) an

implementation period allowing persons who permissibly operated under the rules in existence

prior to this revision to continue to do so until December 2, 2021, so long as they apply for

registration by August 31, 2021, (ii) a new examination special waiver category and new Form NY-

IASW, for persons currently serving permissibly as investment adviser representatives and having

two (2) years of experience in that capacity prior to rule’s effective date, excluding those previously

acting solely as solicitors or those with disciplinary history, and (iii) an extended period to comply

with the examination requirement for those persons permissibly operating under the rules in

existence prior to this revision, but who do not qualify for an examination waiver. The text of the

new regulations can be found here and in the NYCRR.

The rule becomes effective on February 1, 2021, but provides for an implementation period through

December 2, 2021 to persons already permissibly engaged in the investment advisory business.

Eligible persons may continue to provide investment advisory services during the implementation

period without an approved registration. Eligibility under the implementation period is limited to

those applicants who submit their Form U4 to New York on or before August 31, 2021. The

implementation period may also be limited for applicants who are notified of certain deficiencies

and who fail to correct those deficiencies.

Generally, investment adviser representatives (RAs) must meet examination requirement

deadlines under 11.6, or obtain a waiver under 11.7. In addition to the implementation period,

industry participants who currently are permissibly engaged in the investment advisory business,

who do not qualify for a waiver have until December 2, 2021 to pass the required examinations

(apply by August 31

, see 11.6(b)). Alternatively, investment adviser representatives who satisfy

minimum service and experience qualifications and who have no disciplinary history may apply for

a new special waiver exempting them from the examination requirements (see 11.7(b)). Waivers

for persons who satisfy prior registration requirements in other jurisdictions (11.7(a)), or who

possess certain specified certifications (11.7(c)) also remain available under the new regulations.

Persons seeking an exam waiver should wait until February 27, 2021 to apply in order to avoid

opening an unnecessary exam window and being charged an exam fee. See OPEN EXAM

WINDOWS ON CRD, above.

State Registered Investment Adviser and Solicitor personnel:

All principals, supervisors and investment adviser representatives of any investment adviser

registered with the state before February 1, 2021 should have already satisfied the preexisting

examination and/or waiver requirements of 13 NYCRR 11. Compliance with examination

requirements was documented through a manual process using the form NY-IAQ.

I. Persons associated with firms registered on IARD before February 1, 2021.

A. Persons who previously received an approval or waiver through an NY-IAQ submission

with your current firm should:

1. Submit a Form U4 requesting RA registration in New York by August 31, 2021. Fill out

Form U4 in accordance with form instructions and pay the required $200 fee through

CRD.

2. Send an email to IPBIAR@ag.ny.gov with your name and CRD number in the header.

You will receive an automatic acknowledgement email response, but questions will not

be responded to through this email address.

i. If the Department’s records reflect prior approval through the NY-IAQ

process, your application will be approved through CRD.

ii. If no such prior approval exists, your application will remain deficient. See

section B.

B. Persons who did not receive an approval or waiver through an NY-IAQ submission with

their current firm should:

1. Submit a Form U4 requesting RA registration in New York by August 31, 2021. Fill out

Form U4 in accordance with form instructions

and pay the required $200 fee through

CRD.

2. Send an email to [email protected] with your name and CRD number in the header.

You will receive an automatic acknowledgement email response, but questions will not

be responded to through this email address.

i. Your email should explain the duties you performed for the investment

adviser prior to February 1, 2021 and the reason you did not previously

submit a form NY-IAQ to the Department.

ii. If you were previously denied a waiver by the Department and did not

subsequently meet the examination requirements in effect at the time of such

denial your request for any exam waiver will not be reconsidered.

II. Persons that become associated with registered firms on or after February 1, 2021 or that

become associated with new firms submitting a Form ADV on or after February 1, 2021.

1. Ensure that the firm you are associated with either is registered as an investment

adviser in New York or is in the process of registering by submitting a Form ADV

through IARD.

2. Submit a Form U4 requesting RA registration in New York by August 31, 2021. Fill

out Form U4 in accordance with form instructions and pay the required $200 fee

through CRD.

a. If you have not met the exam requirements of 11.6(a) and do not qualify for a

waiver under 11.7, you must pass the required exams before your application for

registration can be approved. If you do not qualify for a waiver because you

have been the subject of a regulatory action, arbitration or other proceeding as

noted in 11.7, you are required to pass an examination. Provision of investment

advisory services between February 1, 2021 and December 2, 2021 is permitted

only if you apply for registration as an RA or continue to satisfy the

requirements of 11.4(i). DO NOT WAIT FOR A DEFICIENCY NOTICE

FROM THE DEPARTMENT BEFORE MEETING THE EXAMINATION

REQUIREMENTS.

b. If you are a seeking a special waiver under 11.7(b), you must complete the Form

NY-IASW and send it by email to [email protected]. You will receive an

automatic acknowledgement email response, but questions will not be

responded to through this email address. Your application and any deficiency

notices will be processed through

CRD.

c. Virtual notarization will be accepted in lieu of traditional notarization as long as

it is permitted by New York Executive Order 202.

Federally Covered Investment Adviser personnel:

III. All natural persons that represent a federally covered investment adviser from a place of

business in the State and who satisfy the requirements of Rule 203A-3 adopted under the

Investment Advisers Act of 1940 must register as an RA in New York.

1. Ensure that the firm you are associated with has Notice Filed with New York

through IARD.

2. Submit a Form U4 requesting RA registration in New York by August 31, 2021. Fill

out Form U4 in accordance with form instructions

and pay the required $200 fee