POLICY STATEMENT REQUIRING INVESTMENT ADVISERS

AND INVESTMENT ADVISER REPRESENTATIVES TO UTILIZE THE

INVESTMENT ADVISER REGISTRATION DEPOSITORY (IARD)

FOR ALL APPLICATION, AMENDMENT, RENEWAL, TERMINATION,

AND WITHDRAWAL FILINGS

 

 

            The Director of the Alabama Securities Commission has determined that it is appropriate and in the public interest to issue a Policy Statement requiring investment advisers and investment adviser representatives to use the Investment Adviser Registration Depository (“IARD”) of the National Association of Securities Dealers Regulation, Inc. (“NASDR”) for all applications, amendments, renewals, terminations, and withdrawals relating to state registration and federal notice filings in Alabama.  This policy will become effective January 1, 2002, for Investment Advisers and upon availability (Scheduled Release Fall 2002) for Investment Adviser Representatives.

 

            The IARD system is web-based national database.  It is designed to accomplish two major objectives:

1. To provide a single nationwide database for the collection and dissemination of information relating to persons and firms in the investment advisory field; and

 

2. To enable investment advisers and representatives a single source for the purposes of state and federal registration and disclosure filings.

 

The URL address for IARD is https://www.webiard.com/iad.  Applications are submitted online and an initial setup fee of $150.00 will be charged by the NASDR for investment adviser registrations and notice filings.  Thereafter, an annual fee of $100.00 will be charged.  This fee is in addition to registration fees charged by the states and SEC.

 

            Pursuant to CODE of Alabama 1975, § 8–6-3(d), applicants may apply for registration by filing an application with the Commission, or its designee.  Pursuant to Code of Alabama, 1975, § 8-6-3(g), a registration may be renewed by filing a renewal application with the Commission, or its designee, prior to the expiration thereof (December 31).  The Commission hereby appoints the IARD as its designee concerning the filing of the Registrants’ initial applications, amendments, renewals, terminations, and withdrawals, as set forth in this policy statement.  After December 31, 2001, the Commission will no longer accept filings from Registrants that are not filed through the IARD system except under certain hardship circumstances.

 

            The Commission will consider requests by Registrants for a hardship exemption from this policy statement on a case-by-case basis only.  Additionally, in the event that a hardship exemption is granted, the Registrant will be required to renew the exemption annually prior to renewal.  To request a Continuing Hardship Exemption, Registrants must file a Form ADV-H (on paper) with the Commission.  If a Continuing Hardship Exemption is granted to a Registrant, the Registrant must send a paper version of the Form ADV to the NASDR, who will key in the filing on the IARD system.  The NASDR will charge a fee for this service in excess of the normal setup and annual fees.  The use of a service bureau may be administratively easier for a Registrant availing themselves of a Continuing Hardship Exemption and may also be less expensive.  Registrants may use any computer to fill out and submit Form ADV on the IARD.  Therefore, a Registrant may utilize the IARD through a computer located in a public library or any other place that provides public access to a computer.

 

            Dated this 2nd day of January, 2002.