SEC, NASAA Announce IARD System Fee Waiver; 2005-145; Oct. 7, 2005
summary
The SEC and NASAA announced a one-year waiver and permanent 30% reduction of IARD system fees for investment advisers and representatives due to unexpectedly high revenues from increased registrations and asset growth, with no fraud or misconduct alleged.
paragraph
The SEC and NASAA jointly waived IARD system fees for one year for all registered investment advisers and representatives, with NASAA permanently reducing state-regulated adviser fees from $100 to $70 annually and waiving the $45 fee for individual representatives. SEC-registered firms had their annual filing fees (ranging from $100 to $550) waived for Form ADV amendments filed between November 1, 2005, and October 31, 2006. The fee adjustments were made because IARD revenues significantly exceeded projections due to higher-than-expected registration volumes and growth in assets under management, with no fraud, penalties, or legal charges involved.
narrative
The U.S. Securities and Exchange Commission (SEC) and the North American Securities Administrators Association (NASAA) announced a one-year waiver of all IARD system fees for investment advisers and representatives, effective November 1, 2005, through October 31, 2006. NASAA also implemented a permanent 30% reduction in fees for state-regulated investment adviser firms, lowering their annual fee from $100 to $70, while waiving the $45 fee for individual representatives. SEC-registered advisers had their annual filing fees—ranging from $100 to $550 depending on assets under management—waived for Form ADV amendments filed during the waiver period. The fee adjustments were made because IARD revenues had significantly exceeded original projections, driven by higher-than-anticipated registration volumes and increased assets under management among advisers. Regulators attributed the surplus to strong state adoption of the system and growing industry participation. Both agencies emphasized that the changes were cost-recovery measures, not responses to misconduct, and no fraud, penalties, or legal charges were involved. The SEC indicated it would seek public comment after the waiver period to evaluate potential long-term fee structures to better align revenues with system costs.
Classified non-corporate(confidence 100%). No EDGAR filing fingerprint (criminal/DOJ-side scheme). detection rule →
Parties
christopher coxiard systemindividual investment adviser representativesnasaa and secpatricia d. strucksec chairmansec-registered adviser firmsSecurities and Exchange Commissionwisconsin securities administrator
Keywords
systemiardinvestmentiard systemfeessystem feesinvestment advisersinvestment advisersecnasaafeewaiveradvisersadviseradviser representatives
Exhibits & Attached Documents (1)
Extracted insights
Dollar amounts 4
- $550 $550 <$10K
- $400 $400 <$10K
- $100 $100 <$10K
- $100 $100 <$10K
Entities 9
- person christopher cox
- person iard system
- person individual investment adviser representatives
- agency nasaa and sec
- person patricia d. struck
- agency sec chairman
- agency sec-registered adviser firms
- agency Securities and Exchange Commission
- person wisconsin securities administrator
Triples 15
- SEC announced one-year waiver of certain system fees for investment advisers in IARD program
- NASAA announced one-year waiver of certain system fees for investment advisers in IARD program
- NASAA reducing system fees by 30 percent for state-regulated investment advisers
- IARD System is operated by NASD
- IARD System is sponsored by NASAA and SEC
- Patricia D. Struck is President of NASAA
- Patricia D. Struck is Wisconsin Securities Administrator
- Christopher Cox is SEC Chairman
- State-regulated investment adviser firms pay $100 annual system fee
- Individual investment adviser representatives pay $45 annual system fee
- State-regulated investment adviser firms will pay $70 annual system fee after 30 percent reduction
- SEC-registered adviser firms pay $100, $400, or $550 annual IARD fee depending on assets under management
- SEC approved waiver of IARD filing fees for SEC-registered advisers from November 1, 2005 through October 31, 2006
- IARD System provides database for 21,000 investment adviser firms and 200,000 individual representatives
- NASAA Board of Directors approved waiver and system fee reduction
Text layers
Extracted body text (4,315c)
SEC, NASAA Announce IARD System Fee Waiver FOR IMMEDIATE RELEASE2005-145 Washington, D.C., October 7, 2005 — The U.S. Securities and Exchange Commission (SEC) and the North American Securities Administrators Association (NASAA) today announced a one-year waiver of certain system fees paid by investment advisers and all investment adviser representatives for registration in the Investment Adviser Registration Depository (IARD) program. Separately, NASAA also announced that it is reducing by 30 percent system fees paid by state-regulated investment advisers on an on-going basis. The IARD system is an Internet-based national database sponsored by NASAA and the SEC and operated by NASD in its role as a vendor. IARD provides a single nationwide database for the collection and dissemination of information about individuals and firms in the investment advisory field; and offers investment advisers and representatives a single source for filing state and federal registration and disclosures. IARD system fees are used for user and system support along with periodic enhancements to the system. “Since its inception, the IARD system has exceeded expectations,” said Patricia D. Struck, Wisconsin Securities Administrator and President of NASAA, the membership organization of securities administrators in the 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, the provinces and territories of Canada, and Mexico. “The system provides streamlined registration procedures for investment advisers and their representatives, promotes consistency, and allows investors to research the employment and disciplinary histories of more than 21,000 investment adviser firms and eventually 200,000 individual investment adviser representatives. We are pleased that IARD’s success has allowed us to grant a waiver and reduction in the system fees.” "This Internet resource has been invaluable to investors. It allows the investing public instant access, without additional charge, to information about their money managers. Now there is even better news: we can, for the next year at least, eliminate the annual adviser fees that go with it," said SEC Chairman Christopher Cox. NASAA is waiving payment of IARD system renewal fees by state-regulated investment advisers and all investment adviser representatives. Currently, state-regulated investment adviser firms pay an annual system fee of $100 and individual representatives pay an annual system fee of $45. Struck also announced that the system fees paid by state-regulated investment advisers will be reduced by 30 percent to $70 on an on-going basis. Struck said NASAA’s Board of Directors approved the waiver and system fee reduction and will continue to monitor the system’s revenues to determine whether future fee adjustments are warranted. The SEC has approved a waiver of IARD filing fees for all SEC-registered advisers with respect to Form ADV annual updating amendments filed from November 1, 2005 through October 31, 2006. Currently, SEC-registered adviser firms pay an annual IARD fee of $100, $400, or $550, depending on their assets under management. The SEC also announced that current projections of fee revenues and system expenses cause it to believe that a reduction in annual IARD filing fees will be necessary to more closely align those fees with the costs of filings. The SEC plans shortly to solicit public comment on potential IARD fee alternatives following the waiver period, including reductions in fees or an extension of the waiver. Both SEC and NASAA observed that revenue from IARD system fees had exceeded original projections. Struck attributed the waiver and reduction in system fees primarily to the overwhelming support of the states in mandating the use of the system for registrants. More investment advisers and investment adviser representatives have registered through the system than originally anticipated, the regulators said. Numbers of SEC-registered advisers have also grown and many advisers have moved to higher fee categories because they have more assets under management. Media Contacts: John Nester (SEC) (202) 551-4125 Bob Webster (NASAA) (202)737-0900 Additional materials: Order, Release No. IA-2439 http://www.sec.gov/news/press/2005-145.htm Home | Previous Page Modified: 10/07/2005
OCR text (4,315c · plain-text · 99% conf)
SEC, NASAA Announce IARD System Fee Waiver FOR IMMEDIATE RELEASE2005-145 Washington, D.C., October 7, 2005 — The U.S. Securities and Exchange Commission (SEC) and the North American Securities Administrators Association (NASAA) today announced a one-year waiver of certain system fees paid by investment advisers and all investment adviser representatives for registration in the Investment Adviser Registration Depository (IARD) program. Separately, NASAA also announced that it is reducing by 30 percent system fees paid by state-regulated investment advisers on an on-going basis. The IARD system is an Internet-based national database sponsored by NASAA and the SEC and operated by NASD in its role as a vendor. IARD provides a single nationwide database for the collection and dissemination of information about individuals and firms in the investment advisory field; and offers investment advisers and representatives a single source for filing state and federal registration and disclosures. IARD system fees are used for user and system support along with periodic enhancements to the system. “Since its inception, the IARD system has exceeded expectations,” said Patricia D. Struck, Wisconsin Securities Administrator and President of NASAA, the membership organization of securities administrators in the 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, the provinces and territories of Canada, and Mexico. “The system provides streamlined registration procedures for investment advisers and their representatives, promotes consistency, and allows investors to research the employment and disciplinary histories of more than 21,000 investment adviser firms and eventually 200,000 individual investment adviser representatives. We are pleased that IARD’s success has allowed us to grant a waiver and reduction in the system fees.” "This Internet resource has been invaluable to investors. It allows the investing public instant access, without additional charge, to information about their money managers. Now there is even better news: we can, for the next year at least, eliminate the annual adviser fees that go with it," said SEC Chairman Christopher Cox. NASAA is waiving payment of IARD system renewal fees by state-regulated investment advisers and all investment adviser representatives. Currently, state-regulated investment adviser firms pay an annual system fee of $100 and individual representatives pay an annual system fee of $45. Struck also announced that the system fees paid by state-regulated investment advisers will be reduced by 30 percent to $70 on an on-going basis. Struck said NASAA’s Board of Directors approved the waiver and system fee reduction and will continue to monitor the system’s revenues to determine whether future fee adjustments are warranted. The SEC has approved a waiver of IARD filing fees for all SEC-registered advisers with respect to Form ADV annual updating amendments filed from November 1, 2005 through October 31, 2006. Currently, SEC-registered adviser firms pay an annual IARD fee of $100, $400, or $550, depending on their assets under management. The SEC also announced that current projections of fee revenues and system expenses cause it to believe that a reduction in annual IARD filing fees will be necessary to more closely align those fees with the costs of filings. The SEC plans shortly to solicit public comment on potential IARD fee alternatives following the waiver period, including reductions in fees or an extension of the waiver. Both SEC and NASAA observed that revenue from IARD system fees had exceeded original projections. Struck attributed the waiver and reduction in system fees primarily to the overwhelming support of the states in mandating the use of the system for registrants. More investment advisers and investment adviser representatives have registered through the system than originally anticipated, the regulators said. Numbers of SEC-registered advisers have also grown and many advisers have moved to higher fee categories because they have more assets under management. Media Contacts: John Nester (SEC) (202) 551-4125 Bob Webster (NASAA) (202)737-0900 Additional materials: Order, Release No. IA-2439 http://www.sec.gov/news/press/2005-145.htm Home | Previous Page Modified: 10/07/2005