Thursday, December 19, 2013

Colorado Securities Commissioner Sanctions UBS Financial Services Inc. Regarding Unlicensed Sales Assistants

This is an interesting item to take note of. As a reminder, supervised persons that interface with clients must be careful to either limit their interactions to operational and administrative matters, unless they are properly licensed. That means one must have the required exams (Series 65 and 66) and be properly registered in the state(s) in which the clients are located, unless otherwise exempt from registration.


For Immediate Release – December 18, 2013

Contact: Fred Joseph, Banking and Securities Commissioner or Gerald Rome, Deputy Securities Commissioner at 303-894-2320

Colorado Securities Commissioner Sanctions UBS Financial Services Inc. Regarding Unlicensed Sales Assistants

Colorado Securities Commissioner Fred Joseph announced today the terms of a settlement between the Colorado Division of Securities and UBS Financial Services Inc., stemming from the Division of Securities' claims that the brokerage firm allowed some of their sales assistants to accept unsolicited orders to buy or sell securities from Colorado residents without being properly licensed in the state of Colorado.

The settlement concludes an investigation led by state securities regulators into allegations that UBS allowed its sales assistants to accept trade orders from clients, a practice that requires licensing of the sales assistant's home state and in the client's state. The Division of Securities investigation found that this was not always the case, and that UBS's supervisory system was not reasonably designed to ensure that its sales assistants fully complied with Colorado's licensing requirements. UBS was also found to have violated the books and record rules because its order tickets did not always identify the person who accepted a client order.

As part of the settlement, UBS has been censured and ordered to cease and desist from future violations, and to pay back licensing fees and penalty to the State of Colorado in the amount of $66,314.23.

The multi-state task force investigating this matter consisted of state securities regulators from Colorado, Texas, Missouri, New Jersey, Vermont, New Hampshire and Delaware. State securities regulators, including Colorado, are continuing their investigations into similar misconduct by other firms.

The Colorado Division of Securities is responsible for the administration and enforcement of the Colorado Securities Act, the Colorado Commodity Code, the Colorado Municipal Bond Supervision Act, and the Local Government Investment Pool Trust Fund Administration and Enforcement Act. The Division licenses and regulates stockbrokers and investment advisers and the securities investments they offer, sell, and advise about in Colorado. The Division also investigates cases of alleged securities fraud.

DORA is dedicated to preserving the integrity of the marketplace and is committed to promoting a fair and competitive business environment in Colorado. Consumer protection is our mission.

Monday, December 16, 2013

Massachusetts NEW IAR Requirement -- CORI

On October 18, 2013 Massachusetts Securities Division of the Office of the Secretary of the Commonwealth (the "Division") sent a letter to registered investment advisors and others, notifying them of the requirement to renew their registration as an investment advisor and investment advisor representative ("IAR").

An additional notice in this letter describes the new requirement for new IARs registering with the Division to submit an executed Criminal Offender Record Information ("CORI") acknowledgement form to the division as a part of the application process.


Here are the details:

  • IARs submitting a new registration application on or after January 1, 2014 will need to provide the CORI form with their application.
  • This requirement does not apply to IARs renewing their existing MA-IAR registration for 2014.
  • The form can be downloaded in PDF and emailed to the Commonwealth's dedicated email address.
  • Failure to provide the CORI form will result in your IAR application being incomplete.
  • The CORI form requirement applies to all new IAR applications, regardless of the RIA's form of registration (state or federal).

A copy of the letter can be found here:

Below is the CORI-related text from the letter mailed by the Division.

The Office of the Secretary of the Commonwealth, Securities Division is registered under the provisions of MASS. GEN. LAWS c. 6, § 172 to receive and review Criminal Offender Record Information (“CORI”) for the purpose of screening current registrants and otherwise qualified prospective registrants.

Subsequent to January 1, 2014 and pursuant to a change in Massachusetts Regulations at 950 MASS. CODE REGS. 12.205(2)(d)(1), each applicant for registration as an investment adviser representative in Massachusetts will be required to submit an executed CORI acknowledgement form to the Division as part of the application procedure.

The CORI acknowledgement form will be made available in fillable .pdf format on the Division’s website at the URL and is a required component of a complete application. The completed and executed CORI acknowledgement form shall be filed electronically with the Division via e-mail submission to the address

An application for investment adviser representative registration will not be deemed complete and processed until the CORI acknowledgement form has been received by the Division. This requirement applies to all investment adviser representatives applying for registration in Massachusetts, irrespective of whether they are associated with state or federally registered investment advisers. This requirement shall not apply to applicants for annual renewal registration which have made their renewal filings timely with the Division.

Please contact us if you have any questions or issues.

Thank you.

The AdvisorAssist Team

Monday, December 9, 2013

Final Call for 2014 Fees!


If you have not paid your 2014 registration or notice filing fees, you will want to pay them today!

The registration of and its advisory persons expire on December 31st each year. To maintain the registration of and your Investment Advisor Representative(s), you must pay the required fee by December 13, 2013. The FINRA E-Bill system often takes up to 2 days or more to post a payment.

For Compliance clients of AdvisorAssist, we have been monitoring your accounts. If you have completed the action and have not informed, us, please click the link in the notification email. This automatically updates our systems to help us manage this process.

As always, we are here to answer any questions that may arise. Please call us at (617) 800-0388 or email us at if you have any questions.

Best regards,

AdvisorAssist Team
AdvisorAssist RIA Compliance Services
Advisor Support - 617.800.0388, Option 2

Friday, December 6, 2013

California to raise IAR Fees

California increases IAR fees

California has increased its IAR fees from a one-time fee of $25 per IAR to an annual fee of $25.

Due to the timing of the implementation of this law, the California fee will be paid in January 2014. The full text of the notice is below:


November 22, 2013

Dear licensee,

This letter is to inform you that the California Legislature recently passed Senate Bill (“SB”) 538, authorizing the Department of Business Oversight (“Department”) to charge $25 in renewal fees annually for each registered Broker-Dealer Agent (“Agent”) and each registered Investment Adviser Representative (“IAR”). California is the second-to-last state to adopt a renewal fee and the proposed fee will be one of the lowest in the nation. Individuals who are dually registered will be assessed separately for each registration.

Because SB 538 becomes effective on January 1, 2014, the 2014 Agent and IAR renewal fee cannot be assessed through the CRD/IARD Renewal Program. Therefore, for the first renewal fee only, a supplementary assessment will occur in January 2014. The Department will send an invoice to each firm stating the number of Agents and/or IARs and the total amount to be remitted to the Department. The Department will use the December 31, 2013, Regulator Renewal Report generated by CRD/IARD to determine the number of Agents and/or IARs registered with your firm. The payments may be remitted via your CRD/IARD account or sent directly to the Department via check. Additional information regarding your payment will be provided with your invoice.

If your firm intends to reduce the number of individuals registered to conduct business in California as a way to reduce your renewal fee obligation, you will need to file a Form U5. The U5 can be dated on or prior to the date of filing or postdated to December 31, 2013 to permit registered activity to continue through the end of the year. Please note that web CRD will not be available on December 25, 2013, and from December 27, 2013 through January 1, 2014. The last day to file a Form U5 will be December 26, 2013.

Future annual renewals will be made through the annual renewal process handled in December by CRD/IARD.

Should you have any questions please contact the Department at (866) 275-2677.

Jan Lynn Owen
Department of Business Oversight