Investment adviser firms register with state regulators

A total of 315 investment adviser firms have applied to register with state regulators in order to comply with a registration rule from the Securities Exchange Commission, pushing some state departments suffering from budget cuts.

The rule requires small investment adviser firms with between $25 million and $100 million in assets under management to register with state regulators, The Florida Current reports.

Of the 315 firms that applied for registration, 157 are located in Florida. Of those firms, 149 applications have been approved while eight applications are still pending. Sixteen investment adviser firms in Florida that will be affected by the rule have yet to apply for registration with the state.

Beginning July 1, investment adviser firms were no longer able to register with the SEC, though some of the firms chose to register with the state before that date.

Six staffers with the Florida Office of Financial Regulation’s securities department attended a four day training session in August in order to strengthen regulators’ handling of registration reviews, according to The Florida Current.

The OFR has had to contend with a $3.5 million budget cut and a reduction of 81 positions in the agency. Several top-level managers also resigned within three months at the beginning of the year.

Four positions in the OFR’s securities division were included in the staff reductions, though Katie Norris, a spokeswoman for the OFR, said that the cutbacks have not affected the registration process.

“The Bureau of Registrations has four dedicated staff that review investment adviser firm and associated person applications,” Norris said, The Florida Current reports. “Although there were four layoffs within the Division of Securities as a result of the budget cutbacks, those positions were administrative in nature and not involved in the regulatory functions of registrations or examinations.”

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